HCL Technologies Limited (HCLTECH)

Information Technology · IT - Software · NSE · Updated 2 August 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹1,346.9 ↓ 7.24% (1Y)

🎯 Key Takeaways

HCL Technologies is in a strategic growth phase, transitioning from mature IT services toward AI and digital transformation leadership, evidenced by targeted acquisitions and governance updates. The company maintains strong profitability metrics but faces modest revenue growth headwinds over the past year, reflected in a slight decline in 1Y return.
Revenue grew 6% QoQ to ₹33,872 in Q3FY26.
⚠️ Integration risk from the Guardian India acquisition, as successful assimilation of talent and technology is critical to realizing strategic objective

Market Cap

₹3.07 L Cr

P/E Ratio

18.6

P/B Ratio

4.41

ROE

23.6%

ROCE

31.9%

Debt/Equity

0.03

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

HCL Technologies is in a strategic growth phase, transitioning from mature IT services toward AI and digital transformation leadership, evidenced by targeted acquisitions and governance updates. The company maintains strong profitability metrics but faces modest revenue growth headwinds over the past year, reflected in a slight decline in 1Y return. Management is focused on scaling capabilities in high-value domains like AI and insurance technology to drive future margin expansion.

📰 What's Happening

In Q3FY26, HCLTech reported revenue of ₹33,872 crore with operating profit of ₹6,841 crore and an OPM of 21.9%, showing sequential improvement from ₹31,942 crore revenue and 20.5% OPM in Q2FY26. A key development was the acquisition of Guardian India for $10.5 million in cash, announced on July 16, 2026, to integrate 2,000 employees into a new Strategic Business Unit focused on AI-driven transformation in the insurance sector. The deal, expected to close by August 1, 2026, strengthens HCLTech's AI capabilities and industry positioning. Additionally, the company scheduled its 34th AGM for August 12, 2026, where shareholders will vote on the re-appointment of Mr. Shikhar Malhotra as Director and the appointment of Mr. Jacob Christian Dahl as Independent Director for a five-year term.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26
Revenue	28,499	28,057	28,862	29,890	30,246	30,349	31,942	33,872
Operating Profit	6,533	6,896	6,825	7,337	6,931	6,491	6,960	6,841
OPM %	21.5%	20.6%	22.1%	22.9%	21.4%	19.9%	20.5%	21.9%
Net Profit	3,995	4,259	4,237	4,594	4,309	3,844	4,236	4,082
EPS	₹14.72	₹15.70	₹15.62	₹16.94	₹15.90	₹14.18	₹15.63	₹15.06

Operating performance shows consistent margin expansion and profitability, with OPM rising from 19.9% in Q1FY26 to 21.9% in Q3FY26, and net profit growing steadily from ₹3,844 crore in Q1FY26 to ₹4,082 crore in Q3FY26. Revenue growth has moderated recently, increasing at 12.5% YoY in Q3FY26 compared to 14.3% in Q3FY25, indicating a slight slowdown. However, the sequential revenue growth from ₹31,942 crore in Q2FY26 to ₹33,872 crore in Q3FY26 reflects ongoing momentum, likely supported by the Guardian India integration and broader digital transformation demand. The company has maintained healthy operating leverage, with operating profit growth outpacing revenue growth in recent quarters.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue or margins in the available filings. However, the acquisition of Guardian India is framed as a strategic move to expand AI capabilities and deepen presence in the insurance sector, with integration expected to enhance long-term value creation. The company continues to focus on high-margin digital and engineering services, as reflected in stable and improving operating margins. Governance updates, including director appointments at the upcoming AGM, suggest an emphasis on leadership continuity and board strengthening.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	2023-2024	2023-2024	2024-2025	2024-2025	2025-2026
Equity Capital	543	543	543	543	543
Reserves	65,140	67,720	68,332	69,112	70,706
Borrowings	2,403	2,327	2,297	2,291	2,359
Total Liabilities	27,905	31,506	30,876	35,871	37,302
Fixed Assets	5,257	4,891	4,596	4,501	4,532
Investments	5,583	7,137	7,642	7,564	6,265
Total Assets	93,579	99,777	99,763	1.06 L Cr	1.09 L Cr

The balance sheet shows stable capital structure with equity remaining constant at ₹543 crore over the past two fiscal years, while reserves have grown from ₹68,332 crore to ₹70,706 crore, indicating retained earnings accumulation. Borrowings have increased slightly from ₹2,291 crore to ₹2,359 crore, but remain minimal relative to equity, resulting in a very low debt-to-equity ratio of 0.03. Total assets have grown from ₹99,763 crore to ₹1.09 L crore, reflecting investments in capabilities and acquisitions. The company is not deleveraging but maintaining a conservative capital structure while funding growth through internal cash flows and modest debt.

💰 Cash Flow Statement (₹ Cr)

Item	2020-2021
Operating	+19,618
Investing	-5,742
Financing	-11,180
Net Cash Flow	—

⚖️ Peer Comparison — IT - Software

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Tata Consultancy Services Limited	8.19 L Cr	17.2	67.6%	50.4%	0.00
Infosys Limited	4.54 L Cr	16.6	40.8%	29.2%	0.00
HCL Technologies Limited	3.07 L Cr	18.6	31.9%	23.6%	0.03
Wipro Limited	1.99 L Cr	15.0	19.1%	16.1%	0.20
Tech Mahindra Limited	1.34 L Cr	26.3	22.1%	10.0%	0.07
LTM Limited	1.18 L Cr	25.7	—	—	—
Oracle Financial Services Software Limited	78,487	34.0	—	—	—
Persistent Systems Limited	74,176	54.5	—	—	—
Coforge Limited	43,059	50.2	—	—	—
MphasiS Limited	39,760	23.9	—	—	—

🔗 Peer Stock Analyses

TCS INFY WIPRO TECHM LTM

⚠️ Risk Factors

1. Integration risk from the Guardian India acquisition, as successful assimilation of talent and technology is critical to realizing strategic objectives. 2. Macroeconomic headwinds in key markets, as evidenced by a slight slowdown in YoY revenue growth despite margin improvement. 3. Talent retention risk in a competitive AI and digital transformation hiring environment, particularly given the focus on acquiring specialized capabilities. 4. Execution risk in scaling the new Strategic Business Unit within the insurance sector, which is still nascent and may face client adoption delays.

📋 Recent Filings

🧠 Analyst's Read

HCL Technologies is executing a clear strategy to transition into higher-value AI and digital services, supported by recent acquisitions and governance updates. While near-term revenue growth is moderating, improving margins and strong cash generation provide resilience. Investors should monitor the integration progress of Guardian India and management's ability to scale new capabilities into sustainable revenue streams.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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