HCL Technologies Limited (HCLTECH)
Large CapIT stocks · Large cap · NSE
HCLTech is a global technology company, home to more than 223,000 people across 60 countries, delivering industry-leading capabilities centered around AI, digital, engineering, cloud and software, powered by a broad portfolio of technology services and products. Consolidated revenues as of 12 months ending June 2026 totaled $14.8 billion.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 47/100margin compression · Rev +14% YoY · PAT +20% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹34,579 Cr | +13.9% | +1.8% |
| EBITDA | ₹6,870 Cr | +13.8% | +2.4% |
| Operating margin | 20.0% | +0 bps | +0 bps |
| PAT | ₹4,626 Cr | +20.3% | +3.0% |
| PAT margin | 13.4% | +71 bps | +17 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 revenue grew 13.9% YoY in INR, 3.0% YoY in USD, with Net Income up 20.3% YoY in INR. Advanced AI revenue surged 62.1% YoY CC, driving record Q1 bookings of $2.4Bn. EBIT margin expanded 39 bps QoQ.
HCLTech delivered robust Q1 FY27 performance with strong YoY growth in INR revenue and net income. Advanced AI business shows significant traction, driving record Q1 bookings. Margin expansion and strong cash generation are positive, though USD revenue saw a slight QoQ decline. Management is confident in outpacing the market.
Revenue by Segment (Q1 FY27)
Latest issuer-disclosed distribution across 3 reported categories.
Advanced AI Business
Grew 10.6% QoQ CC and 62.1% YoY CC, driving significant new deal wins and enterprise transformation.
IT & Business Services
Largest segment, grew 4.2% YoY CC, with EBIT margin expansion of 184 bps YoY.
Public Services Vertical
Achieved strongest vertical growth at 12.0% YoY CC.
Retail & CPG Vertical
Demonstrated strong vertical growth at 10.1% YoY CC.
AI-led Transformation Demand
Enterprises are choosing HCLTech for AI-led transformation, accelerating new growth vectors.
Operational Efficiencies
Visible in margin expansion, contributing to management's confidence in outpacing the market.
Robust Cash Generation
OCF/NI at 111% reflects the strength and resilience of the business model.
USD Revenue Decline
Reported USD revenue declined 0.9% QoQ, and CC revenue declined 0.5% QoQ.
Telecommunications, Media, Publishing & Entertainment Vertical
This vertical declined 10.9% YoY CC.
HCLSoftware Performance
Revenue declined 5.3% YoY CC, and EBIT margin declined 475 bps YoY.
Intense Competition
Intense competition in IT services, BPO, and consulting services may affect cost advantage.
Client Concentration
Client concentration is identified as a risk factor in the safe harbor statement.
Reduced Demand for Technology
Risk of reduced demand for technology in key focus areas.
Talent Attraction and Retention
Ability to attract and retain highly skilled professionals and wage increases in India are risks.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for understanding underlying business growth, especially for IT services with potential seasonality. QoQ is important for tracking sequential momentum, particularly in constant currency, and for assessing recent operational efficiency and deal execution. USD revenue QoQ decline needs attention.
Revenue (INR)
₹34,579Cr, ↑1.8% QoQ, ↑13.9% YoY
Revenue (USD)
$3,650M, ↓0.9% QoQ, ↑3.0% YoY
Constant Currency (CC) Revenue
↓0.5% QoQ, ↑2.6% YoY
Net Income (INR)
₹4,624Cr (13.4% of revenue), ↑3.0% QoQ, ↑20.3% YoY (includes restructuring cost impact)
Market Outperformance
Management is confident in outpacing the market over the medium term due to bookings and operational efficiencies.
AI as Growth Vector
AI is accelerating enterprise transformation and unlocking new growth vectors for HCLTech.
Upskilling Focus
Remaining focused on upskilling people in emerging technologies and embedding AI across the organization.
Improving Capital Efficiency
Focused on further improving capital efficiency, reflected in LTM ROIC increase.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Advanced AI Revenue Growth | 62.1% YoY CC | Continued strong growth and increasing contribution to overall revenue. |
| Bookings Momentum | $2.4Bn (highest ever Q1 net-new) | Sustained deal wins to support future revenue growth and market share. |
| Services Revenue (CC) | Down 0.7% QoQ, up 3.5% YoY | Reversal of QoQ decline and acceleration of YoY growth in constant currency. |
| EBIT Margin | 16.9% (incl. restructuring) | Further expansion and the impact of restructuring costs on profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
51NeutralSMA20 +3.6% / mo · MACD −
Technical chart
HCLTECHdaily · 1Y · AUTO-4.5%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 47.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 rising (~3.5% over last month) — short-term momentum positive.
- RSI(14) at 47 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 27% off 52W high · 26% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 0.8% of the 30-week proxy.
- The 30-week proxy changed -3.6% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 60 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 60 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 5.5%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 16.4%.
Main drags
- Valuation is weaker at 6/30; verify the latest quarterly trend.
- Growth is weaker at 11/25; verify the latest quarterly trend.
- Cash flow is weaker at 8/10; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
High Trust: Claim history is still being built. It ranks around the 99th percentile of the scored universe and 98th percentile within IT. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 60.9%.
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
overall median 67 · IT: 98th pctile, median 69 · Large: 97th pctile, median 73
97 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
High Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 60.9%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 5.5%.
- ▸12 years of positive FCF.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 19.40
- P/B
- 4.67
- EV/EBITDA
- 11.19
- Market Cap
- 350985.00Cr
Profitability
- ROE
- 23.80%
- ROCE
- 30.40%
- ROA
- 15.15%
- Dividend Y
- 4.18%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- 6.00%
Balance Sheet
- Debt/Equity
- 0.07
- Interest Coverage
- 37.01×
- Altman Z
- 8.37
- Book Value
- 277.00
Cash Flow
- FCF Yield
- 5.50%
- FCF Positive Y
- 12/5
- OCF
- 19975.00 Cr
- EPS TTM
- 64.21
Shareholding
- Promoter Hold
- 60.88%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 35%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.