IT - Software
Valuation | |
|---|---|
| Market Cap | 4.55 LCr |
| Price/Earnings (Trailing) | 27.59 |
| Price/Sales (Trailing) | 3.55 |
| EV/EBITDA | 16.45 |
| Price/Free Cashflow | 19.19 |
| MarketCap/EBT | 20.56 |
| Enterprise Value | 4.48 LCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | -1.8% |
| Price Change 1M | 2.2% |
| Price Change 6M | 14.6% |
| Price Change 1Y | -2.8% |
| 3Y Cumulative Return | 13.5% |
| 5Y Cumulative Return | 11.8% |
| 7Y Cumulative Return | 18.1% |
| 10Y Cumulative Return | 14.4% |
| Revenue (TTM) |
| 1.28 LCr |
| Rev. Growth (Yr) | 12.8% |
| Earnings (TTM) | 16.47 kCr |
| Earnings Growth (Yr) | -11.1% |
Profitability | |
|---|---|
| Operating Margin | 18% |
| EBT Margin | 17% |
| Return on Equity | 23.11% |
| Return on Assets | 15.17% |
| Free Cashflow Yield | 5.21% |
Cash Flow & Liquidity |
|---|
| Cash Flow from Investing (TTM) | -4.91 kCr |
| Cash Flow from Operations (TTM) | 22.26 kCr |
| Cash Flow from Financing (TTM) | -18.56 kCr |
| Cash & Equivalents | 9.49 kCr |
| Free Cash Flow (TTM) | 21.15 kCr |
| Free Cash Flow/Share (TTM) | 77.95 |
Balance Sheet | |
|---|---|
| Total Assets | 1.09 LCr |
| Total Liabilities | 37.3 kCr |
| Shareholder Equity | 71.27 kCr |
| Current Assets | 66.12 kCr |
| Current Liabilities | 28.84 kCr |
| Net PPE | 4.53 kCr |
| Inventory | 160 Cr |
| Goodwill | 22.79 kCr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.02 |
| Debt/Equity | 0.03 |
| Interest Coverage | 27.2 |
| Interest/Cashflow Ops | 34.63 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 54 |
| Dividend Yield | 3.22% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.00% |
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money has been increasing their position in the stock.
Insider Trading: There's significant insider buying recently.
Dividend: Dividend paying stock. Dividend yield of 3.22%.
Profitability: Recent profitability of 13% is a good sign.
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Strong Balance Sheet.
Size: It is among the top 200 market size companies of india.
Momentum: Stock has a weak negative price momentum.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money has been increasing their position in the stock.
Insider Trading: There's significant insider buying recently.
Dividend: Dividend paying stock. Dividend yield of 3.22%.
Profitability: Recent profitability of 13% is a good sign.
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Strong Balance Sheet.
Size: It is among the top 200 market size companies of india.
Momentum: Stock has a weak negative price momentum.
Investor Care | |
|---|---|
| Dividend Yield | 3.22% |
| Dividend/Share (TTM) | 54 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 60.77 |
Financial Health | |
|---|---|
| Current Ratio | 2.29 |
| Debt/Equity | 0.03 |
Technical Indicators | |
|---|---|
| RSI (14d) | 52.44 |
| RSI (5d) | 29.97 |
| RSI (21d) | 57.32 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Sell |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Buy |
| RSI21 Signal | Hold |
| SMA 5 Signal | Sell |
| SMA 10 Signal |
Updated Feb 2, 2026
IT stocks, including HCL Technologies, faced significant losses due to global growth concerns and rising US bond yields.
HCL Technologies declined by 1.55%, contributing to the overall negative sentiment in the IT sector.
The BSE IT index fell by 303 points, reflecting the broader negative outlook and fragility in growth.
Summary of HCL Tech's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
HCLTech's management provided a positive outlook for the future during the Q3 FY26 earnings call. Key highlights include:
Revenue Growth: For Q3, HCLTech reported revenues of $3.79 billion, reflecting a growth of 4.8% YoY and 4.2% QoQ in constant currency. This marked a milestone of surpassing $15 billion in annualized revenue.
Bookings and Momentum: Net new bookings reached $3 billion, showing a 17% QoQ and 43% YoY growth. The company highlighted strong engagement in applications and engineering, accounting for 63% of bookings.
Operating Margin: The operating margin was 18.6%, down 94 basis points YoY but improved by 111 basis points QoQ. Excluding restructuring costs, margins would be approximately 19.4%.
Guidance Update: Management raised the services revenue growth guidance for the full year to 4.75% to 5.25% in constant currency terms, with an overall company-level guidance of 4% to 4.5%.
AI Strategy: The strategy around AI continues to evolve, with notable growth of 19.9% in advanced AI services driven by AI Factory and Physical AI. Management emphasized that AI is being embedded across major engagements.
Industry Position: The company is positioning itself strongly within the AI landscape, especially around service transformation and has witnessed strong demand for AI solutions in various sectors.
Client and Market Trends: The pipeline remains robust, with a focus on capturing growth opportunities due to the structural demand for technology-driven business transformation amidst global uncertainties.
The management's forward-looking statements reflect confidence in navigating market challenges, leveraging AI technologies, and maintaining a focus on long-term strategic goals.
Understand HCL Tech ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Vama Sundari Investments (Delhi) Pvt. Ltd. | 44.17% |
| HCL Holdings Private Ltd. | 16.46% |
| Life insurance Corporation of India | 6.63% |
| HDFC Trustee Company Limited | 1.88% |
| Artisan International Value Fund | 1.87% |
| ICICI Prudential Mutual Fund | 1.17% |
| NPS Trust | 1.12% |
Detailed comparison of HCL Tech against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| TCS | Tata Consultancy Services | 11.47 LCr | 2.65 LCr | -2.50% | -22.90% | 24.03 | 4.32 | - | - |
| INFY | Infosys | 6.61 LCr | 1.78 LCr |
Comprehensive comparison against sector averages
HCLTECH metrics compared to IT
| Category | HCLTECH | IT |
|---|---|---|
| PE | 27.59 | 25.36 |
| PS | 3.55 | 3.73 |
| Growth | 8.8 % | 6.4 % |
HCL Tech is a prominent Computers - Software & Consulting company, traded under the stock ticker HCLTECH, with a notable market capitalization of Rs. 420,428.9 Crores.
The company offers a range of services globally, including software development, business process outsourcing, and infrastructure management. HCL Tech operates through several segments:
Among its offerings, HCL Tech provides digital business services that encompass consulting, data and AI, application development, maintenance, modernization, software as a service, automation and integration, and enterprise application development. It also delivers digital foundation services such as consulting on workplace solutions, hybrid cloud, cybersecurity, networks, and unified services management.
HCL Tech excels in digital process operations, covering areas like lending solutions, supply chain management, finance and accounting, digital content, and cognitive automation. Furthermore, its engineering and R&D services include digital engineering and product engineering across various industry verticals.
The company boasts innovative solutions like CloudSMART, an adaptive solution portfolio for continuous modernization, and IoT WoRKS, which provides digital transformation services. Additionally, they have platforms such as Career Shaper, aimed at talent transformation, and HCLTech X, a cloud-based digital platform integrating content and commerce.
HCL Tech caters to a diverse clientele, including sectors such as aerospace and defense, manufacturing, healthcare, banking, and more. It has established a strategic partnership with Intellect Design Arena Ltd and was founded in 1976, with its headquarters located in Noida, India.
Financially, HCL Tech reports a trailing 12-month revenue of Rs. 117,760 Crores and has demonstrated strong profitability, with a profit of Rs. 17,085 crores over the past four quarters. The company has seen 40.7% revenue growth in the last three years and rewards its investors with dividends, boasting a yield of 5.03% per annum, having distributed Rs. 78 per share in the past year.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Sell |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
HCLTECH vs IT (2021 - 2026)
General • 02 Feb 2026 Enclosed please find an intimation of participation by the Company in the investor conferences. |
General • 28 Jan 2026 Enclosed please find a release on the captioned subject. |
General • 27 Jan 2026 Enclosed please find a release on the captioned subject. |
General • 23 Jan 2026 Enclosed please find a release on the captioned subject. |
Acquisition • 23 Jan 2026 Release- "HCLTech to acquire Singapore-based Finergic to boost digital transformation offerings for wealth management industry" |
General • 21 Jan 2026 Enclosed please find a release on the captioned subject. |
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
1. Question: When you talk to clients right now versus exactly this time last year, what differences do you see in conversations about AI implementation?
Answer: We observe a shift from point solutions to holistic discussions on AI's potential. Clients now focus on reimagining business processes rather than just implementing AI tools. The conversation has matured, with an emphasis on foundational elements like data management and cloud migration. However, deploying AI can slow as clients seek comprehensive transformation rather than piecemeal solutions.
2. Question: In which service lines do you think clients are now more willing to invest due to AI?
Answer: We're seeing increased interest in areas like software development and data lifecycle management, where AI significantly enhances efficiency. Custom silicon for edge inferencing and AI Factory services are also gaining traction as clients realize the need for foundational investments to optimize AI deployment.
3. Question: Can you provide an update on how much more restructuring charges are pending and the outlook for SG&A investments?
Answer: We expect a similar restructuring impact in Q4 as in Q3, around 50 basis points. Our goal is to conclude this restructuring by end-Q4 to start the new financial year clean. SG&A investments will continue into Q4, particularly in AI solutions and go-to-market strategies.
4. Question: Regarding the Retail vertical, have any mega deal wins started to contribute to this quarter's performance?
Answer: No, the mega deal's contribution will begin in the current quarter. The strong performance in Retail this quarter comes from execution on several wins secured in previous quarters, rather than from the mega deal.
5. Question: Is the strong performance in your Software segment indicative of a broader pick-up in customer IT spending?
Answer: While we saw seasonality boost growth, it doesn't necessarily reflect broader IT spending resurgence. Demand for our data intelligence portfolio, particularly the combination of Zeenea with Actian, has driven strong performance. Our success in marketing automation solutions also contributed, but overall IT spending remains cautious.
6. Question: With multiple deals won, why does the guidance indicate a potential decline in Q4 services growth?
Answer: We present a range for guidance to account for fluctuations. While our performances have been strong, we adjusted guidance conservatively to reflect varying potential outcomes, considering broader market uncertainties.
7. Question: How is the demand for repurposing existing data center infrastructure to support AI?
Answer: There's significant demand in our infrastructure business for updating existing data centers to support AI workloads. While widespread traction isn't yet evident, we anticipate this will be a substantial growth driver as organizations begin to refresh their data center technology in the coming years.
8. Question: How does the restructuring impact current and future margins?
Answer: The restructuring has affected margins this quarter, with a 90 basis points impact from wage hikes and about 30-40 basis points from furloughs. After adjusting for these, margins remain robust. We expect the restructuring effects to normalize next year, supporting the continuation of strong margins.
9. Question: Can we consider legacy modernization using AI a significant opportunity going forward?
Answer: Yes, legacy modernization offers a substantial opportunity, especially as clients recognize its value in transformation. We're seeing increasing demand across verticals, particularly in financial services and healthcare, where many clients still utilize custom software. This trend is set to grow significantly over the next few years.
| Shiv Nadar Foundation | 0.08% |
| Kiran Nadar Musuem of Art | 0.08% |
| Mrs. Kiran Nadar | 0.02% |
| Mr. Shikhar Neelkamal Malhotra | 0% |
| Master Armaan Malhotra (minor) | 0% |
| Master Jahaan Malhotra (minor) | 0% |
| HCL Corporation Pvt. Ltd. | 0% |
| Universal Office Automation Limited | 0% |
| International Data Management Limited | 0% |
| HCL Infosystems Limited | 0% |
| SSN Investments (Delhi) Pvt Ltd | 0% |
| HCL IT City Lucknow Private Limited | 0% |
| KRN Education Private Limited | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
| -13.30% |
| 24.1 |
| 3.72 |
| - |
| - |
| WIPRO | Wipro | 2.54 LCr | 95.1 kCr | -9.90% | -22.30% | 19.12 | 2.67 | - | - |
| LTIM | LTIMindtree | 1.77 LCr | 41.96 kCr | -1.30% | +1.20% | 37.31 | 4.23 | - | - |
| TECHM | Tech Mahindra | 1.69 LCr | 55.53 kCr | +7.00% | +3.00% | 33.04 | 3.04 | - | - |
Analysis of HCL Tech's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2025
| Description | Share | Value |
|---|---|---|
| IT and Business Services | 72.1% | 24.5 kCr |
| Engineering and R&D services | 16.7% | 5.7 kCr |
| HCL Software | 11.2% | 3.8 kCr |
| Profit Before exceptional items and Tax |
| 13.4% |
| 6,465 |
| 5,702 |
| 5,189 |
| 5,735 |
| 6,132 |
| 5,687 |
| Exceptional items before tax | - | -956 | 0 | 0 | 0 | 0 | 0 |
| Total profit before tax | -3.4% | 5,509 | 5,702 | 5,189 | 5,735 | 6,132 | 5,687 |
| Current tax | -0.9% | 1,376 | 1,389 | 1,281 | 1,489 | 1,229 | 1,191 |
| Deferred tax | -34.2% | 51 | 77 | 64 | -63 | 309 | 259 |
| Total tax | -2.7% | 1,427 | 1,466 | 1,345 | 1,426 | 1,538 | 1,450 |
| Total profit (loss) for period | -3.6% | 4,082 | 4,236 | 3,844 | 4,309 | 4,594 | 4,237 |
| Other comp. income net of taxes | -33% | 634 | 946 | 1,213 | 592 | -414 | 556 |
| Total Comprehensive Income | -9% | 4,716 | 5,182 | 5,057 | 4,901 | 4,180 | 4,793 |
| Earnings Per Share, Basic | -3.9% | 15.06 | 15.63 | 14.18 | 15.9 | 16.94 | 15.62 |
| Earnings Per Share, Diluted | -3.8% | 15.05 | 15.61 | 14.17 | 15.88 | 16.93 | 15.61 |
| 25% |
| 156 |
| 125 |
| 127 |
| 109 |
| 177 |
| 238 |
| Depreciation and Amortization | -2.2% | 2,320 | 2,371 | 2,431 | 2,615 | 2,813 | 1,952 |
| Other expenses | 6.9% | 10,829 | 10,132 | 10,078 | 9,504 | 9,350 | 9,762 |
| Total Expenses | 6.3% | 35,865 | 33,738 | 32,591 | 28,250 | 24,228 | 22,016 |
| Profit Before exceptional items and Tax | 6.6% | 16,474 | 15,456 | 14,716 | 13,268 | 12,410 | 11,177 |
| Total profit before tax | 6.6% | 16,474 | 15,456 | 14,716 | 13,268 | 12,410 | 11,177 |
| Current tax | 16.4% | 3,344 | 2,873 | 3,045 | 2,464 | 2,480 | 1,965 |
| Deferred tax | -5% | 864 | 909 | 212 | -70 | 1,187 | 243 |
| Total tax | 11.3% | 4,208 | 3,782 | 3,257 | 2,394 | 3,667 | 2,208 |
| Total profit (loss) for period | 5.1% | 12,266 | 11,674 | 11,459 | 10,874 | 8,743 | 8,969 |
| Other comp. income net of taxes | -118.7% | -81 | 439 | -259 | 277 | 520 | -488 |
| Total Comprehensive Income | 0.6% | 12,185 | 12,113 | 11,200 | 11,151 | 9,263 | 8,481 |
| Earnings Per Share, Basic | 5.1% | 45.25 | 43.11 | 42.32 | 40.1 | 33.22 | 33.06 |
| Earnings Per Share, Diluted | 5.2% | 45.21 | 43.02 | 42.27 | 40.09 | 33.22 | 33.05 |
| -1.1% |
| 2,900 |
| 2,931 |
| 2,994 |
| 3,225 |
| 3,453 |
| 3,727 |
| Capital work-in-progress | 85.7% | 53 | 29 | 70 | 22 | 19 | 21 |
| Investment property | - | 0 | 0 | 0 | 0 | 0 | 0 |
| Goodwill | 0.1% | 7,222 | 7,215 | 6,549 | 6,549 | 6,548 | 6,549 |
| Non-current investments | 0.9% | 5,005 | 4,960 | 4,988 | 5,040 | 5,041 | 5,057 |
| Loans, non-current | -70.3% | 175 | 586 | 0 | 286 | 359 | 0 |
| Total non-current financial assets | -15.6% | 5,822 | 6,894 | 5,549 | 6,129 | 6,016 | 6,014 |
| Total non-current assets | -7.4% | 21,739 | 23,468 | 21,416 | 22,762 | 23,541 | 24,789 |
| Total assets | -11.3% | 46,568 | 52,503 | 49,086 | 52,307 | 50,562 | 53,360 |
| Borrowings, non-current | -50% | 6 | 11 | 17 | 26 | 35 | 51 |
| Total non-current financial liabilities | 38.3% | 1,081 | 782 | 717 | 685 | 1,635 | 516 |
| Provisions, non-current | 14.9% | 1,483 | 1,291 | 1,246 | 1,065 | 0 | 879 |
| Total non-current liabilities | 12.8% | 3,978 | 3,528 | 2,889 | 2,373 | 1,635 | 1,589 |
| Borrowings, current | -35.7% | 10 | 15 | 14 | 27 | 66 | 140 |
| Total current financial liabilities | -8.6% | 5,517 | 6,038 | 4,413 | 4,329 | 4,317 | 4,962 |
| Provisions, current | 9% | 423 | 388 | 366 | 342 | 326 | 283 |
| Current tax liabilities | 49.5% | 2,947 | 1,972 | 1,824 | 1,465 | 1,667 | 1,322 |
| Total current liabilities | -18.7% | 11,415 | 14,035 | 9,787 | 10,464 | 9,401 | 10,667 |
| Total liabilities | -12.4% | 15,393 | 17,563 | 12,676 | 12,837 | 11,036 | 12,256 |
| Equity share capital | 0% | 543 | 543 | 543 | 543 | 543 | 543 |
| Total equity | -10.8% | 31,175 | 34,940 | 36,410 | 39,470 | 39,526 | 41,104 |
| Total equity and liabilities | -11.3% | 46,568 | 52,503 | 49,086 | 52,307 | 50,562 | 53,360 |
| 3.6% |
| 2,705 |
| 2,611 |
| 2,532 |
| 2,282 |
| - |
| - |
| Net Cashflows From Operating Activities | 4.6% | 15,991 | 15,282 | 13,538 | 10,591 | - | - |
| Cashflows used in obtaining control of subsidiaries | - | 1,358 | 0 | 0 | 16 | - | - |
| Proceeds from sales of PPE | 61.5% | 22 | 14 | 213 | 33 | - | - |
| Purchase of property, plant and equipment | 17.3% | 461 | 393 | 806 | 780 | - | - |
| Dividends received | 18.7% | 109 | 92 | 84 | 84 | - | - |
| Interest received | 41.3% | 801 | 567 | 454 | 504 | - | - |
| Income taxes paid (refund) | 11.2% | 180 | 162 | 141 | 100 | - | - |
| Other inflows (outflows) of cash | 327.4% | 2,359 | -1,036 | -1,687 | 1,870 | - | - |
| Net Cashflows From Investing Activities | 142.5% | 993 | -2,331 | -798 | 2,232 | - | - |
| Payments to acquire or redeem entity's shares | - | 676 | 0 | 0 | 804 | - | - |
| Proceeds from borrowings | 8.7% | 377 | 347 | 108 | 77 | - | - |
| Repayments of borrowings | -16.7% | 404 | 485 | 142 | 76 | - | - |
| Payments of lease liabilities | 15.2% | 297 | 258 | 221 | 207 | - | - |
| Dividends paid | 15.5% | 16,250 | 14,073 | 12,995 | 11,389 | - | - |
| Interest paid | -80% | 3 | 11 | 17 | 5 | - | - |
| Other inflows (outflows) of cash | - | 0 | 0 | 0 | -371 | - | - |
| Net Cashflows from Financing Activities | -19.1% | -17,253 | -14,480 | -13,267 | -12,775 | - | - |
| Effect of exchange rate on cash eq. | 355.6% | 24 | -8 | -6 | -17 | - | - |
| Net change in cash and cash eq. | 84% | -245 | -1,537 | -533 | 31 | - | - |
General • 20 Jan 2026 Enclosed please find a release on the captioned subject. |
| Total | 34 kCr |