Annual report
Reg. 34 (1) Annual Report. 20 Jul
Source: Bse
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.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals18 Oct 2026 · screener
Official result overlay30 Sept 2026 · nse-xbrl
Latest result12 Oct, 04:58 pm IST
Score20 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · IT P/E 21.4 (n=204)
Technical timing lens
Trend score and candlestick chart
76BullishSMA20 -1.6% / mo · MACD + · sector +14.5pp vs Nifty 500 (3M)
Stock trend: 60
Sector RS: 100
Sector 3M: +8.9% vs Nifty 500 -5.6%
IT FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
HCLTECHD candles · FIT view+14.7%Latest close ₹1379.90 on 2026-10-19
Bar
-0.2%
RSI
69
MACD hist
21.25
52W pos
47%
2026-10-19O ₹1382.10H ₹1399.50L ₹1359.00C ₹1379.90Vol 39.9L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
HCLTECHNifty ITNifty 500
- HCLTECH
- +13.0%
- Nifty 500
- -5.6%
- Nifty IT
- +8.1%
- Vs Nifty 500
- +18.6 pp
Chart stats
19 Oct 2026- From 52W high
- -22.5%
- 52W range position
- 47%
- ATR (14)
- 2.9%
- Volume vs 20D
- 0.89x
- Avg traded value
- ₹589 Cr
- 20D price channel
- ₹1,172.8 - ₹1,399.5
₹1,780.1
₹1,030 - ₹1,780.1
₹39.8
Latest completed session
20-session average
38.7% annualized volatility
Research snapshot
What the evidence says now
Mixed fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend supports entry, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · FAIR VALUE59
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Good70
Revenue +11.5% · PAT +21.1% YoY
Technical
Bullish76
Price trend and sector-relative-strength timing.
Valuation
Legacy model+15.2%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence89
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Sept 2026
Good · 70/100Rev +12% YoY · PAT +21% YoY · margin expansion · operating leverage
Filed 12 Oct 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹35,620 Cr | +11.5% | +3.0% |
| EBITDA | ₹7,477 Cr | +14.2% | +8.8% |
| Operating margin | 21.0% | +99 bps | +112 bps |
| PAT | ₹5,132 Cr | +21.1% | +10.9% |
| PAT margin | 14.4% | +115 bps | +103 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 19.70
- P/B
- 4.93
- EV/EBITDA
- 11.63
- Market Cap
- 374486.00Cr
Profitability
- ROE
- 23.80%
- ROCE
- 30.40%
- ROA
- 15.22%
- Dividend Y
- 4.05%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- 6.00%
Balance Sheet
- Debt/Equity
- 0.08
- Interest Coverage
- 39.33×
- Altman Z
- 8.10
- Book Value
- 280.00
Cash Flow
- FCF Yield
- 5.16%
- FCF Positive Y
- 12/5
- OCF
- 19975.00 Cr
- EPS TTM
- 67.51
Shareholding
- Promoter Hold
- 60.88%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 47%
Financial History
Updated 19/10/2026
Revenue
₹ CrLatest: 35.6k+3.0% vs prev
Net Profit
₹ CrLatest: 5,132+10.9% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 69. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~1.7% over last month) — short-term momentum negative.
- RSI(14) at 69 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 22% off 52W high · 34% 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.
Nifty 500 leadership
Relative Strength & Trend Stage
67
RS percentile
Stage 3 Topping
1M return
+10.5%
3M return
+13.0%
6M return
+7.4%
1Y return
-9.3%
RS 1D
+11
RS 20D
+34
Sector rank
#2
Industry rank
#5
Stage evidence
- 20.2% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (-1.0% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
50-DMA
price above
200-DMA
price above
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 101.91+1.03%
RS vs Nifty 500102
Valuation & peers
U-Score 59 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Valuation & peers
U-Score 59 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Premium Compounder
Fundamental score breakdown
U band · FAIR VALUEValuation5/30
Growth11/25
Quality17/20
Balance Sheet13/15
Cash Flow8/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
59
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
59/100 · legacy band FAIR VALUE
Positive drivers
- FCF yield is supportive at 5.2%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 15.2%.
Main drags
- Valuation is weaker at 5/30; 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.
Sector valuation model
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.
Primary lens
PE and EV/EBITDA relative to revenue growth, margins, and cash conversion.
Secondary checks
Deal pipeline, attrition, dollar revenue growth, FCF yield.
Main risk check
Low PE can reflect weak growth or margin pressure.
PE
19.7
PB
4.9
EV/EBITDA
11.6
ROE
23.8%
ROCE
30.4%
FCF Yield
5.2%
Debt/Equity
0.1
MoS
+15.2%
Score movement
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.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
59
Previous: 59
Legacy U-Score band
FAIR VALUE
Previous: FAIR VALUE
Margin of safety
+15.2%
Previous: +15.2%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
60
60
60
60
60
60
60
60
59
59
59
59
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹652.16
-111.6% MoS
Growth-justified P/E
24.1
Growth-justified Value
₹1,626.99
+15.2% MoS
PEG
2.53
Comparable companies
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.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
INFY
Large
Infosys Limited
IT Services / Digital
match 169
69
14.2
31.9%
+37%
UNDERVALUED
WIPRO
Large
Wipro Limited
IT Services / Digital
match 167
55
13.9
15.5%
-25%
FAIR VALUE
HEXT
Large
Hexaware Technologies Limited
IT Services / Digital
match 159
60
25.1
24.9%
+17%
UNDERVALUED
NEWGEN
Large
Newgen Software Technologies Limited
IT Services / Digital
match 158
63
19.8
19.6%
+31%
UNDERVALUED
SONATSOFTW
Large
Sonata Software Limited
IT Services / Digital
match 158
66
13.8
28.2%
+54%
UNDERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-07-15T00:40:44.706Z
Management commentary snapshot
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.
Current business mix
Revenue by Segment (Q1 FY27)
Latest issuer-disclosed distribution across 3 reported categories.
IT & Business Services75.1%
Engineering & R&D16.4%
HCLSoftware8.5%
Growth engines
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.
Tailwinds
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.
Headwinds
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.
Risk radar
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
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
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.
Sector KPIs management disclosed
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)
Management forward view
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.
Thesis monitor
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.
Trust Score
89Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 100th percentile of the scored universe and 99th percentile within IT. No major sub-score weakness stands out.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 20 Oct 2026
management-trust-v1
98 docs text-extracted · 62 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
100th percentile
overall median 67 · IT: 99th pctile, median 69 · Large: 100th pctile, median 73
Evidence depth
Financial-only
98 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.
Read 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.
Promoter
86
strong · holding, pledge, alignment
Cash flow
89
strong · profit to cash conversion
Balance sheet
96
strong · leverage and solvency
Discipline
82
strong · capital discipline
Results
95
strong · quarterly consistency
Trust positives
- ▸Promoter holding is 60.9%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 5.2%.
- ▸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.
Continue researching HCL Technologies Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Acquisition 16 Jul - HCLTech signs seven-year Guardian partnership and acquires Guardian India for US$10.5 million; 2,000 employees to join.
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All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.