HCL Technologies Limited (HCLTECH) AI Stock Analysis

• Market Cap: ₹3.89T
• Dividend Yield: 3.23%
• Average Volume (3M): 110.60K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.94
• Revenue Growth: 6.87%
• EPS Growth: 3.34%
• Country: IN
• Employees: 223,420
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 14.17
• Shares Outstanding: 2,713,665,000
• 10 Day Avg. Volume: 82,940
• 30 Day Avg. Volume: 110,604
• PEG Ratio: 2.24
• Price to Book (P/B): 5.96
• Price to Sales (P/S): 3.54
• P/FCF Ratio: 18.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,642.55
• Price Target Upside: 10.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: ₹1,515.00 ▲(1.92% Upside)

HCL Technologies' strong financial performance is a key strength, supported by robust profitability and a solid balance sheet. However, the current bearish technical indicators significantly impact the overall score. The valuation is reasonable, with an attractive dividend yield, but market momentum remains a concern.

HCL Technologies Limited Business Overview & Revenue Model

Company Description

HCL Technologies Limited offers software development, business process outsourcing, and infrastructure management services worldwide. The company operates in three segments: IT and Business Services; Engineering and R&D Services; and Products & Platforms. The IT and Business Services segment provides IT and business services, such as application, infrastructure, and digital process operations; digital transformation services for digital and analytics; IoTWoRKs; and cloud native and cybersecurity solutions. The Engineering and R&D Services segment offers engineering services and solutions to software, embedded, mechanical, VLSI, and platform engineering that support the lifecycle of products for hardware and software industries. The Products & Platforms segment provides modernized software products for technology and industry specific requirements. This segment also offers HCL software; DRYiCE software, an organic IP-based software; Actian Avalanche Hybrid Cloud Data platform; and Nippon, a workforce analytics solution. It also offers hybrid cloud, digital workplace, and cloud native services, as well as service integration and management. The company serves financial services, manufacturing, life sciences and healthcare, public services, retail and CPG, technology and services, telecom, media, publishing, and entertainment industries. HCL Technologies Limited was founded in 1976 and is headquartered in Noida, India.

How the Company Makes Money

HCL Technologies makes money primarily through its diverse range of IT services and solutions offered to a global clientele. The company's revenue model is built on key revenue streams such as application development and maintenance, infrastructure management, engineering and R&D services, digital process operations, and cybersecurity solutions. HCLTECH generates income through long-term contracts and consulting fees from clients across various industries, including banking, healthcare, and telecommunications. Additionally, strategic partnerships with technology giants and enterprises enhance its market reach and contribute to its revenue. The company's focus on digital transformation and cloud-based solutions also plays a significant role in its earnings, as businesses increasingly seek these services to enhance their operations.

HCL Technologies Limited Financial Statement Overview

Summary

HCL Technologies exhibits strong financial health with consistent revenue growth, robust profitability, and a solid balance sheet. Minor concerns include a slight decline in gross profit margin and free cash flow growth.

Income Statement

HCL Technologies has demonstrated consistent revenue growth with a TTM revenue growth rate of 1.96%. The company maintains strong profitability with a net profit margin of 14.20% and an EBIT margin of 19.21% in the TTM. However, there is a slight decline in gross profit margin from the previous year, indicating potential cost pressures.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.09, indicating prudent financial leverage. The return on equity is impressive at 24.30%, reflecting efficient use of shareholder funds. The equity ratio stands at a healthy level, showcasing a strong capital structure.

Cash Flow

Cash flow generation remains strong with a high free cash flow to net income ratio of 0.95. However, the TTM free cash flow growth rate has declined by 2.72%, suggesting some challenges in cash flow expansion. The operating cash flow to net income ratio is solid, indicating effective cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.19T	1.18T	1.11T	1.03T	871.90B	744.98B
Gross Profit	414.39B	413.06B	396.71B	376.07B	334.76B	304.95B
EBITDA	246.90B	248.27B	234.06B	217.85B	197.00B	191.61B
Net Income	169.80B	174.37B	157.98B	150.90B	137.23B	110.34B
Balance Sheet
Total Assets	1.05T	1.05T	997.15B	934.11B	892.26B	863.15B
Cash, Cash Equivalents and Short-Term Investments	287.73B	287.62B	271.72B	201.01B	189.17B	156.76B
Total Debt	65.55B	62.79B	57.66B	47.81B	63.56B	65.09B
Total Liabilities	353.62B	358.64B	315.05B	280.04B	270.89B	261.46B
Stockholders Equity	699.29B	696.10B	682.02B	654.05B	620.46B	600.08B
Cash Flow
Free Cash Flow	206.09B	224.24B	214.00B	163.48B	152.55B	177.14B
Operating Cash Flow	218.83B	235.32B	224.48B	180.09B	169.00B	196.18B
Investing Cash Flow	-48.70B	-49.14B	-67.23B	-39.31B	14.77B	-57.30B
Financing Cash Flow	-181.32B	-185.61B	-154.64B	-158.81B	-145.08B	-111.92B

HCL Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1486.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCLTECH, the sentiment is Neutral. The current price of 1486.4 is above the 20-day moving average (MA) of 1440.04, above the 50-day MA of 1458.07, and below the 200-day MA of 1594.20, indicating a neutral trend. The MACD of -8.67 indicates Negative momentum. The RSI at 60.46 is Neutral, neither overbought nor oversold. The STOCH value of 90.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HCLTECH.

HCL Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WIPRO	77 Outperform	₹2.55T	18.93	―	4.47%	0.41%	20.30%
INFY	74 Outperform	₹6.21T	22.71	―	2.85%	7.03%	2.21%
LTIM	68 Neutral	₹1.58T	33.51	―	2.02%	7.64%	3.35%
TCS	68 Neutral	₹10.95T	22.15	―	3.82%	3.62%	4.43%
HCLTECH	66 Neutral	₹3.89T	22.87	―	3.23%	6.87%	3.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.43T	28.41	―	3.07%	2.88%	79.99%

HCL Technologies Limited Corporate Events

HCL Technologies Announces Equity Shares Transfer to Investor Fund

HCL Technologies Limited has announced the publication of a newspaper advertisement regarding the transfer of equity shares to the Investor Education and Protection Fund. This move is aimed at notifying shareholders about the transfer process, ensuring compliance with regulatory requirements, and maintaining transparency in shareholder communications.

HCL Technologies Publishes AGM Notice and Annual Report

HCL Technologies Limited announced the publication of a newspaper advertisement regarding the dispatch of the Notice of the 33rd Annual General Meeting and the Annual Report for FY2024-25 to its shareholders. This disclosure, made in compliance with SEBI Listing Regulations, highlights the company’s commitment to transparency and communication with its stakeholders, potentially reinforcing its industry position and stakeholder trust.

HCL Technologies Releases Conference Call Recording Post Financial Results

HCL Technologies Limited has uploaded the audio recording of its conference call held on July 14, 2025, following the announcement of its financial results for the quarter ended June 30, 2025, on its website. This move ensures transparency and provides stakeholders with easy access to the company’s financial discussions, potentially impacting investor confidence and market positioning.