HCL Tech
HCL Tech
Information Technology F&OKey Fundamentals
LargecapComputer Software & ConsultingInformation TechnologyTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
3- Company is almost debt free.
- Stock is providing a good dividend yield of 4.48%.
- Company has been maintaining a healthy dividend payout of 90.6%
Weaknesses
1- The company has delivered a poor sales growth of 11.5% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoHCL Technologies Ltd commands a market cap of ₹3,27,648 Cr and trades at a PE of 18.6x with a consistent ROE of 24% over the last decade. The company is nearly debt-free and returns substantial capital to shareholders via a 4.47% dividend yield and 90.6% payout ratio, though its stock has declined 18% over the past year and profit growth of 7% TTM trails its historical averages.
- Near debt-free balance sheet provides strong financial resilience and flexibility for acquisitions or organic investment without leverage risk
- Dividend yield of 4.47% is among the highest in the Indian IT sector, supported by a consistent 90.6% payout ratio, offering meaningful income to shareholders
- Consistent ROE of 24% maintained across 3-year, 5-year, and 10-year periods indicates durable capital efficiency and stable profitability
- TTM revenue growth of 13% has accelerated compared to the 3-year compounded sales CAGR of 9%, suggesting improving demand momentum
- 10-year compounded sales CAGR of 15% and profit CAGR of 12% demonstrate a long track record of sustained business expansion
- PE ratio of 18.6x is relatively modest compared to large-cap Indian IT peers, which historically trade in the 20-30x range, reflecting a valuation discount
- Price-to-book ratio of 4.32x, when paired with a 24% ROE, reflects efficient value generation per unit of equity deployed
- Stock price decline of 18% over 1 year and flat 5-year CAGR of 0% means the stock has de-rated significantly from prior peaks while underlying earnings have continued to grow
- Stock has delivered a negative 18% return over the past 1 year, significantly underperforming broader market indices and signaling persistent selling pressure
- 5-year stock CAGR of 0% indicates zero capital appreciation over a half-decade horizon despite business growth, reflecting sustained multiple compression
- Compounded profit growth of 7% TTM and 6% over 3 years has materially decelerated from the 10-year average of 12%, pointing to margin or growth headwinds
- 5-year compounded sales growth of 12% (cited as 11.5% in screener data) is considered below-par for a large-cap IT company in a digital transformation cycle
- Dividend payout ratio of 90.6% leaves very limited retained earnings for reinvestment, potentially constraining organic growth and R&D spending
- 3-year stock CAGR of -2% suggests the market has been repricing the stock lower even as revenues grew at a 9% CAGR, indicating eroding investor confidence in future earnings trajectory
- 52-week high and low data are unavailable (reported as 0), but the steep 1-year decline suggests the stock may be trading near its recent lows with unclear technical support levels
- Profit CAGR of 9% over 5 years lags the corresponding sales CAGR of 12% over the same period, implying gradual margin dilution over the medium term
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 3h ago- ₹185cr semiconductor lab launched Sep 8
HCLTech opened a 40,000 sq ft Advanced Semiconductor Lab in Bengaluru with ₹185 crore investment, featuring Class 10K and 1K cleanrooms with equipment from Teradyne, Advantest, and Keysight.
- 2030 emissions goal hit early Aug 26
HCLTech achieved its 2030 Scope 1 and 2 emissions reduction target four years ahead of schedule in FY26, cutting emissions 55.84% from the FY20 baseline.
- Wacker GCC partnership in Pune Aug 27
HCLTech will build a Global Capability Center in Pune for Wacker Chemie AG (€5.5B annual sales), focusing on engineering, IT, and digital transformation using DevSecOps and automation.
- AI traffic MoU with NSW Sep 3
HCLTech signed an MoU with Transport for NSW to apply AI-powered analytics to the SCATS traffic system, integrating Sarvam's multilingual models for Indian languages with on-premise cloud options.
- Investor conferences in September Aug 31
HCLTech will attend Bank of America, UBS, Axis Capital, and Jefferies investor events in September 2026 in London and Gurugram, with group and one-on-one meetings.
- Telco AI scaling lags adoption Aug 17
HCLTech survey found 60% of telecom leaders view AI as a top revenue driver, but only 25% are ready to scale due to legacy infrastructure and skills gaps.
TL;DR: HCLTech is investing in new capabilities with a ₹185 crore semiconductor lab and forging strategic partnerships with Wacker and Transport for NSW, while its $14.8B revenue base remains stable. ESG progress is notable with the 2030 emissions target met four years early. No material headwinds emerged in the period, though the company's own telco survey highlights broader industry AI-scaling challenges. The trend is constructive, with active deal-making and R&D expansion signaling confidence heading into the second half of FY27.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 26,296 | 26,672 | 28,446 | 28,499 | 28,057 | 28,862 | 29,890 | 30,246 | 30,349 | 31,942 | 33,872 | 33,981 | 34,579 |
| Expenses | 20,931 | 20,743 | 21,659 | 22,382 | 22,264 | 22,493 | 23,030 | 23,764 | 24,314 | 25,397 | 26,460 | 27,269 | 27,709 |
| Operating Profit | 5,365 | 5,929 | 6,787 | 6,117 | 5,793 | 6,369 | 6,860 | 6,482 | 6,035 | 6,545 | 7,412 | 6,712 | 6,870 |
| OPM % | 20% | 22% | 24% | 21% | 21% | 22% | 23% | 21% | 20% | 20% | 22% | 20% | 20% |
| Other Income | 344 | 365 | 370 | 416 | 1,103 | 456 | 477 | 449 | 456 | 415 | -571 | 322 | 361 |
| Interest | 86 | 156 | 140 | 171 | 191 | 131 | 166 | 156 | 209 | 215 | 205 | 240 | 84 |
| Depreciation | 927 | 1,010 | 1,143 | 1,093 | 998 | 1,007 | 1,039 | 1,040 | 1,093 | 1,043 | 1,127 | 1,092 | 1,039 |
| PBT | 4,696 | 5,128 | 5,874 | 5,269 | 5,707 | 5,687 | 6,132 | 5,735 | 5,189 | 5,702 | 5,509 | 5,702 | 6,108 |
| Tax % | 25% | 25% | 26% | 24% | 25% | 26% | 25% | 25% | 26% | 26% | 26% | 21% | 24% |
| Net Profit | 3,531 | 3,833 | 4,351 | 3,995 | 4,259 | 4,237 | 4,594 | 4,309 | 3,844 | 4,236 | 4,082 | 4,490 | 4,626 |
| EPS in Rs | 13.02 | 14.12 | 16.03 | 14.69 | 15.69 | 15.61 | 16.92 | 15.87 | 14.16 | 15.61 | 15.02 | 16.54 | 17.04 |
Profit & Loss
| Particulars | Jun 2015 | Mar 2016 9m | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 36,701 | 31,136 | 47,568 | 50,569 | 60,427 | 70,676 | 75,379 | 85,651 | 1,01,456 | 1,09,913 | 1,17,055 | 1,30,144 | 1,34,374 |
| Expenses | 28,215 | 24,482 | 37,178 | 39,323 | 46,501 | 53,360 | 55,331 | 65,122 | 78,828 | 85,715 | 91,551 | 1,03,392 | 1,06,835 |
| Operating Profit | 8,486 | 6,654 | 10,390 | 11,246 | 13,926 | 17,316 | 20,048 | 20,529 | 22,628 | 24,198 | 25,504 | 26,752 | 27,539 |
| OPM % | 23% | 21% | 22% | 22% | 23% | 24% | 27% | 24% | 22% | 22% | 22% | 21% | 20% |
| Other Income | 1,126 | 871 | 1,069 | 1,230 | 943 | 589 | 927 | 1,067 | 1,358 | 1,495 | 2,485 | 574 | 527 |
| Interest | 91 | 74 | 89 | 69 | 174 | 505 | 511 | 319 | 353 | 553 | 644 | 869 | 744 |
| Depreciation | 404 | 410 | 828 | 1,383 | 2,073 | 3,420 | 4,611 | 4,326 | 4,145 | 4,173 | 4,084 | 4,355 | 4,301 |
| PBT | 9,117 | 7,041 | 10,542 | 11,024 | 12,622 | 13,980 | 15,853 | 16,951 | 19,488 | 20,967 | 23,261 | 22,102 | 23,021 |
| Tax % | 20% | 20% | 18% | 21% | 20% | 21% | 30% | 20% | 24% | 25% | 25% | 25% | — |
| Net Profit | 7,342 | 5,602 | 8,606 | 8,722 | 10,120 | 11,057 | 11,169 | 13,523 | 14,845 | 15,710 | 17,399 | 16,652 | 17,434 |
| EPS in Rs | 26.02 | 19.86 | 30.16 | 31.32 | 37.31 | 40.75 | 41.07 | 49.74 | 54.73 | 57.86 | 64.08 | 61.33 | 64.21 |
| Div. Payout % | 58% | 40% | 40% | 19% | 11% | 25% | 24% | 84% | 88% | 90% | 94% | 88% | — |
Balance Sheet
| Particulars | Jun 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 281 | 282 | 285 | 278 | 271 | 543 | 543 | 543 | 543 | 543 | 543 | 543 |
| Reserves | 23,943 | 27,109 | 32,664 | 36,108 | 41,095 | 50,724 | 59,370 | 61,371 | 64,862 | 67,720 | 69,112 | 74,622 |
| Borrowings | 648 | 1,090 | 582 | 557 | 4,195 | 7,986 | 6,864 | 6,343 | 4,794 | 5,756 | 6,276 | 5,215 |
| Other Liabilities | 10,372 | 10,859 | 12,231 | 11,046 | 12,788 | 23,566 | 19,270 | 20,664 | 23,051 | 24,987 | 28,549 | 34,732 |
| Total Liabilities | 35,245 | 39,341 | 45,762 | 47,989 | 58,349 | 82,819 | 86,047 | 88,921 | 93,250 | 99,006 | 1,04,480 | 1,15,112 |
| Fixed Assets | 8,275 | 9,716 | 15,235 | 18,753 | 22,888 | 37,490 | 37,145 | 35,077 | 34,619 | 35,063 | 36,172 | 37,297 |
| CWIP | 552 | 611 | 448 | 320 | 235 | 400 | 312 | 129 | 40 | 108 | 59 | 142 |
| Investments | 869 | 698 | 1,306 | 2,660 | 2,305 | 7,066 | 6,862 | 6,351 | 5,495 | 7,137 | 7,564 | 7,090 |
| Other Assets | 25,548 | 28,315 | 28,773 | 26,256 | 32,921 | 37,863 | 41,728 | 47,364 | 53,096 | 56,698 | 60,685 | 70,583 |
| Total Assets | 35,245 | 39,341 | 45,762 | 47,989 | 58,349 | 82,819 | 86,047 | 88,921 | 93,250 | 99,006 | 1,04,480 | 1,15,112 |
Cash Flow
| Particulars | Jun 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 5,539 | 3,823 | 8,995 | 8,328 | 8,971 | 13,359 | 19,618 | 16,900 | 18,009 | 22,448 | 22,261 | 19,975 |
| Investing | -2,088 | -2,208 | -3,890 | -2,236 | -3,256 | -12,332 | -5,665 | 1,597 | -3,573 | -6,608 | -4,896 | -656 |
| Financing | -3,140 | -2,237 | -4,517 | -5,714 | -1,471 | -3,168 | -11,192 | -14,508 | -15,881 | -15,464 | -18,561 | -19,369 |
| Net Cash Flow | 311 | -623 | 588 | 378 | 4,244 | -2,141 | 2,761 | 3,989 | -1,445 | 376 | -1,196 | -50 |
| Free Cash Flow | 4,338 | 3,074 | 5,184 | 3,007 | 5,537 | 11,530 | 17,865 | 15,345 | 16,565 | 21,432 | 21,178 | 18,576 |
| CFO/OP | 86 | 79 | 106 | 95 | 83 | 92 | 115 | 99 | 96 | 110 | 104 | 90 |
Ratios
| Particulars | Jun 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 65 | 91 | 64 | 70 | 71 | 73 | 85 | 88 | 92 | 85 | 81 | 88 |
| Cash Conversion Cycle | 65 | 91 | 64 | 70 | 71 | 73 | 85 | 88 | 92 | 85 | 81 | 88 |
| Working Capital Days | 25 | 62 | 38 | 58 | 44 | 14 | 48 | 44 | 43 | 31 | 17 | 23 |
| ROCE % | 40% | 28% | 34% | 31% | 31% | 27% | 26% | 25% | 28% | 30% | 32% | 30% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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69 extracted metrics + investor summaries across FY12–FY27.
Documents
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Company Information
HCL Tech is a leading global IT services company, which is ranked amongst the top five Indian IT services companies in terms of revenues. Since its inception into the global landscape after its IPO in 1999, HCL Tech has focused on transformational outsourcing, and offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. The company leverages its extensive global offshore infrastructure and network of offices in 46 countries to provide multi-service delivery in key industry verticals.
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