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HCL Technologies Limited (HCLTECH)

Information Technology · IT - Software · NSE · Updated 16 June 2026

₹1,119.3 ↓ 35.04% (1Y)

🎯 Key Takeaways

HCL Technologies is in a phase of steady operational growth with strong profitability metrics, though its 1-year return reflects broader IT sector headwinds. The company maintains high ROE and ROCE, indicating efficient capital use, but faces near-term growth pressures evident in sequential revenue trends.
Revenue grew 6% QoQ to ₹33,872 in Q3FY26.
⚠️ Sluggish sequential growth in revenue despite margin resilience suggests potential demand softness or pricing pressure in key markets.

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%

✨ Ask AI About HCLTECH 📊 Interactive Charts

📖 The Story

HCL Technologies is in a phase of steady operational growth with strong profitability metrics, though its 1-year return reflects broader IT sector headwinds. The company maintains high ROE and ROCE, indicating efficient capital use, but faces near-term growth pressures evident in sequential revenue trends. Management is focused on governance enhancements and operational efficiency, with no major strategic pivots announced recently.

📰 What's Happening

In Q3FY26, HCL reported revenue of ₹33,872 crore, up from ₹31,942 crore in Q2FY26, driven by improved execution across key verticals. Operating profit rose to ₹6,841 crore with OPM expanding to 21.9%, reflecting margin discipline. Net profit of ₹4,082 crore and EPS of ₹15.06 show sequential improvement. Management highlighted strong deal wins in digital and cloud services, particularly in North America, as a catalyst for growth. The appointment of Ms. Kimsuka Narsimhan as Independent Director on June 10, 2026, via e-voting, was approved by shareholders, reinforcing board governance and diversity without altering operational trajectory.

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 has grown steadily from ₹28,057 crore in Q1FY25 to ₹33,872 crore in Q3FY26, with operating margins stabilizing above 21% despite macroeconomic softness. Profitability remains robust, with net profit margin holding near 12% and EPS showing consistent growth. The sequential increase in revenue and OPM in Q3FY26 aligns with management's focus on higher-value digital engagements and cost optimization. However, YoY growth has slowed, indicating challenges in scaling amid intense competition and delayed client decision-making in the IT sector.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance in the latest filings, but commentary in Q3FY26 results emphasizes continued momentum in digital transformation services and a positive long-term outlook for enterprise IT spending. The board upgrade with Ms. Narsimhan is framed as part of long-term governance strengthening rather than a response to operational issues. No new targets for revenue, margin, or capex were disclosed, suggesting a cautious but confident stance on sustaining current growth trends.

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 negligible debt (Borrowings ₹2,359 crore) and strong equity base of ₹543 crore, supported by reserves of ₹70,706 crore. Total assets have grown to ₹1.09 L Cr, indicating ongoing investment in capabilities and client relationships. There is no evidence of aggressive capex or M&A activity, suggesting a conservative approach to capital allocation focused on organic growth and financial resilience rather than expansion through leverage or acquisitions.

💰 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. Sluggish sequential growth in revenue despite margin resilience suggests potential demand softness or pricing pressure in key markets. 2. High reliance on North American clients exposes the company to macroeconomic volatility and delayed spending in the IT sector. 3. No visible growth catalysts or new revenue streams have been announced, raising concerns about long-term differentiation in a competitive IT services landscape. 4. Lack of forward guidance limits predictability for investors seeking clarity on execution trajectory.

📋 Recent Filings

🧠 Analyst's Read

HCL Technologies demonstrates operational resilience with improving margins and steady revenue growth, but its near-term outlook hinges on execution in a soft IT demand environment. Investors should monitor client spending trends, order intake visibility, and management's ability to sustain margin discipline without new growth levers. Governance upgrades are positive, but not a substitute for strategic momentum.

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 2026-06-16.