HCL Technologies Limited (HCLTECH)

Information Technology · IT - Software · NSE · Updated 13 July 2026

₹1,221.2 ↓ 25.46% (1Y)

🎯 Key Takeaways

HCL Technologies is in a mature growth phase with stable profitability but faces near-term headwinds, reflected in a -25.46% one-year return despite strong historical margins and returns.
Revenue grew 6% QoQ to ₹33,872 in Q3FY26.
⚠️ 1) Slowing revenue growth in key verticals, particularly in BFSI and manufacturing, as highlighted in FY25 filings, poses downside risk to top-line ex

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 mature growth phase with stable profitability but faces near-term headwinds, reflected in a -25.46% one-year return despite strong historical margins and returns. The company maintains robust financial metrics, including high ROCE and low debt, but recent quarterly growth has plateaued, signaling potential market share or demand softness in key segments.

📰 What's Happening

Management has consistently highlighted operational efficiency and client diversification as strategic priorities, particularly in Q3FY26 results filed on June 16, 2026. The company announced the closure of its trading window ahead of July 13, 2026, financial results, indicating standard compliance but no major disclosures yet. Sequential revenue growth slowed to 5.9% in Q3FY26 from 10.5% in Q4FY25, while operating margin expanded slightly to 21.9%, suggesting cost management is offsetting revenue pressure. Earlier filings from FY25 showed sustained OPM above 21% and EPS growth, but the latest quarter reflects a deceleration in top-line momentum.

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

Revenue growth has moderated in recent quarters, with Q3FY26 revenue at ₹33,872 Cr up 5.9% sequentially and 13.2% YoY, a notable slowdown from double-digit growth seen in prior years. Operating margin held at 21.9%, supported by stable operating profit of ₹6,841 Cr, but net profit declined 3.5% YoY to ₹4,082 Cr, indicating margin pressure from higher investments or pricing pressures. EPS of ₹15.06 remains strong but grew only 1.8% YoY, reflecting the deceleration in profitability growth despite healthy margins.

🔮 Management Outlook & What's Next

Management has not yet provided formal forward guidance in the latest filing, but prior communications have emphasized sustained investment in digital transformation services and client retention as drivers of long-term growth. The company continues to focus on high-margin segments and global delivery expansion, though no specific revenue or margin targets were disclosed in the June 16, 2026, results preview. The absence of updated guidance suggests caution amid macroeconomic headwinds affecting IT spending.

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 remains strong, with equity flat at ₹543 Cr but reserves growing to ₹70,706 Cr from ₹69,112 Cr, indicating retained earnings are being reinvested rather than distributed. Borrowings rose modestly to ₹2,359 Cr from ₹2,291 Cr, but remain negligible relative to equity, supporting a conservative capital structure. Total assets grew to ₹1.09 L Cr, reflecting ongoing investments in operations and possibly strategic acquisitions, while the stable equity base suggests limited share buybacks or dilution.

💰 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) Slowing revenue growth in key verticals, particularly in BFSI and manufacturing, as highlighted in FY25 filings, poses downside risk to top-line expansion. 2) Increasing competition in digital services could pressure margins if pricing concessions become necessary, despite current OPM stability. 3) Global macroeconomic weakness affecting IT capex budgets remains a structural risk, especially in North American and European markets where HCL derives significant revenue.

📋 Recent Filings

🧠 Analyst's Read

HCL Technologies remains fundamentally strong with high returns on capital and a healthy balance sheet, but near-term growth challenges and sector headwinds warrant close monitoring of execution in digital and engineering services. Investors should watch for signs of revenue recovery in the upcoming July 13, 2026, results and any updates to strategic guidance.

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

✨ Deep Dive with AI on HCLTECH

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-13.

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