Tata Consultancy Services Ltd.
NSE: TCS
Technology · Information Technology Services
₹2,156.00 last close on 9 Oct 2026 +3.85%
Research updated
HCL Technologies Limited
NSE: HCLTECHTechnologyInformation Technology Services
- Last close
- ₹1,216.70
- Day change
- +₹39.80 (+3.38%)vs
- Market cap
- ₹3.31 lakh crIndian rupees
- Research updated
- 2 reports
About HCL Technologies
HCL Technologies Limited is an Indian multinational information technology services and consulting company headquartered in Noida, Uttar Pradesh. The firm provides a broad portfolio of technology services and products, with core capabilities in AI, digital transformation, cloud, engineering, and software, serving enterprises worldwide across major sectors such as financial services, manufacturing, life sciences and healthcare, telecom and media, retail and consumer goods, public services, and technology and services. Its operations are structured around key segments including IT and Business Services, Engineering and R&D Services, and software-focused Products and Platforms, which encompass the HCLSoftware division and other industry software offerings. HCL Technologies Limited supports clients with digital business solutions, IT infrastructure and digital foundation services, and digital process operations, helping organizations modernize core systems, optimize operations, and manage complex, global IT environments. Founded in India and now present in dozens of countries, it plays a significant role in the global IT services and enterprise software market as a major partner for large private and public sector institutions.
- Sector
- Technology
- Industry
- Information Technology Services
- Listing
- NSE: HCLTECH
- Chief executive
- Mr. ChinnaSwamy VijayaKumar
- Employees
- 2,23,420
- Headquarters
- Noida, India
- ISIN
- INE860A01027
- Website
- hcltech.com
Public research · Report of
Business model & financial foundation
HCLTech (NSE: HCLTECH), IT services, engineering and R&D services, enterprise software: revenue of ₹1,30,144 crore in FY26 (+11.2% on FY25), an EBITDA margin of 20.6%, net profit of ₹16,642 crore and net cash of ₹33,288 crore.
- Revenue, FY26 (₹ crore)
- 1,30,144
- consolidated
- Revenue growth, FY26
- +11.2%
- on FY25
- EBITDA margin, FY26
- 20.6%
- EBITDA (revenue less cogs, employee, other expenses) / revenue
- Net profit, FY26 (₹ crore)
- 16,642
- to owners
- Return on equity, FY26
- 23.0%
- on average equity
- Net debt, FY26 (₹ crore)
- -33,288
- Net debt (company net cash, negative = net cash)
- Market capitalisation (₹ crore)
- 3,36,354
- at the close of 12 Oct 2026
Company profile
HCLTech is India's third-largest IT services company by revenue (FY26 revenue Rs130,144 crore, $14.7bn). It earns about 92% of revenue from services — IT and Business Services (infrastructure, applications, digital process operations) and Engineering and R&D Services — and about 8% from HCLSoftware, a portfolio of acquired enterprise software products. Revenue is mostly in US dollars and euros, with costs largely in India, so the rupee is a material earnings driver.
| Item | Value |
|---|---|
| Legal name | HCL Technologies Limited |
| Exchange and ticker | NSE: HCLTECH; BSE: 532281 |
| ISIN | INE860A01027 |
| Sector | Information Technology |
| Industry | IT services, engineering and R&D services, enterprise software |
| Headquarters | Noida, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | B S R & Co. LLP |
| Market capitalisation | ₹3,36,354 crore (12 Oct 2026) |
| Shares outstanding | 270.76 crore shares (FY26) |
| Price | ₹1,217 (close, 12 Oct 2026) |
| 52-week range | ₹1,030 - ₹1,780 (to 12 Oct 2026) |
| Website | https://www.hcltech.com |
Corporate structure and shareholding
Parent: HCL Corporation / Vama Sundari Investments (promoter group, 60.88% Jun-26).
| Entity | Holding | Business |
|---|---|---|
| HCL America Inc. | 100% | US delivery and sales entity; material subsidiary under SEBI LODR Reg 16(1)(c) for FY26 |
Wholly owned subsidiaries across US, Europe and APAC; acquisitions FY27: Jaspersoft (from 1 Jul 2026), HPE Telco Solutions (Aug 2026), Guardian India Operations (Jul 2026); Robotiq.ai pending.
| Shareholding (% of shares) | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoter | 60.81% | 60.81% | 60.86% | 60.88% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 16.64% | 16.22% | 15.51% | 14.90% |
| Domestic institutions | 17.84% | 18.41% | 18.99% | 18.78% |
| of which mutual funds | 9.20% | 9.07% | 9.22% | 9.04% |
| Retail | 3.38% | 3.25% | 3.12% | 3.72% |
| Other | 1.33% | 1.31% | 1.53% | 1.72% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
HCLTech sells IT and business services (ITBS, 75.4% of Q2FY27 revenue), engineering and R&D services (ERS, 16.7%) and enterprise software (HCLSoftware, 7.9%) to large global enterprises, mainly in the US (56.1% of services revenue) and Europe (26.9%). Revenue is billed in USD/EUR while about 57% of revenue goes on employee cost, much of it in rupees, so the INR/USD rate drives rupee revenue and margin. Services are annuity-heavy (infrastructure, applications, digital operations); software is a portfolio of acquired products whose reported revenue is lumpy because multi-year term licences are recognised mostly upfront. FY26 revenue Rs130,144cr ($14,664mn), EBIT margin 17.2% including 65bps restructuring.
| Peer | Why the dossier compares them |
|---|---|
| Tata Consultancy Services (TCS) | Largest Indian IT services peer; same tier-1 deal market and rupee cost base |
| Infosys (INFY) | Tier-1 Indian IT services peer with similar size, vertical mix and guidance-led model |
| Wipro (WIPRO) | Tier-1 peer; comparable infrastructure-heavy services mix and Europe exposure |
| Tech Mahindra (TECHM) | Peer with engineering and telecom exposure overlapping HCLTech ERS and telco clients |
| LTIMindtree (LTIM) | Large mid-tier IT services peer competing for the same enterprise digital deals |
| Persistent Systems (PERSISTENT) |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 74,23,886 | 1,01,456 | 1,09,913 | 1,17,055 | 1,30,144 |
| Cost of revenue (vendor classification) * | 41,20,230 | 58,322 | 65,277 | 69,834 | 69,034 |
| Other operating costs (vendor classification) * | 16,22,531 | 19,887 | 20,071 | 5,889 | 6,215 |
| EBITDA (vendor classification) * | 18,71,855 | 23,546 | 25,528 | 27,213 | 28,114 |
| EBIT (EBITDA less D&A; before other income) | 14,96,895 | 19,841 | 20,025 | 21,420 | 22,397 |
| Finance costs | 27,650 | 353.0 | 553.0 | 644.0 | 869.0 |
| Profit before tax | 14,69,245 | 19,488 | 20,967 | 23,261 | 22,102 |
| Total tax expense | 2,97,125 | 4,643 | 5,257 | 5,862 | 5,450 |
| Profit for the period | 11,72,120 | 14,845 | 15,710 | 17,399 | 16,652 |
| Diluted EPS (INR, period) | 49.77 | 54.79 | 57.86 | 64.09 | 61.36 |
| Purchase of stock-in-trade + change in inventories | 1,797 | 2,028 | 2,609 | ||
| Employee benefits expense | 62,480 | 66,755 | 74,143 | ||
| Outsourcing costs + other expenses | 21,438 | 22,768 | 26,640 | ||
| EBITDA (revenue less cogs, employee, other expenses) | 24,198 | 25,504 | 26,752 | ||
| Depreciation and amortisation | 4,173 | 4,084 | 4,355 | ||
| Other income | 1,495 | 2,485 | 1,530 | ||
| Exceptional items (negative = charge) | 0.00 | 0.00 | -956.0 | ||
| Profit attributable to non-controlling interests | 8.00 | 9.00 | 10.0 | ||
| Profit attributable to owners | 15,702 | 17,390 | 16,642 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity * | 53,74,432 | 65,398 | 68,271 | 69,673 | 75,197 |
| Borrowings (current + non-current, excl. leases) | 5,49,786 | 4,786 | 2,327 | 2,291 | 159.0 |
| Cash & equivalents + other bank balances + current investments | 9,10,271 | 9,057 | 27,193 | 28,762 | 30,385 |
| Trade receivables - billed (current) | 13,41,398 | 19,572 | 19,483 | 19,523 | 23,585 |
| Inventories * | 13,955 | 228.0 | 185.0 | 133.0 | 239.0 |
| Trade payables * | 1,99,095 | 2,526 | 2,570 | 3,016 | 3,726 |
| Net property, plant and equipment * | 208.0 | 408.0 | 509.0 | 649.0 | 1,099 |
| Capital work in progress * | 11,181 | 40.0 | 108.0 | 73.0 | 72.0 |
| Total assets * | 77,17,024 | 93,411 | 99,777 | 1,05,544 | 1,16,258 |
| Net debt (company net cash, negative = net cash) | -24,866 | -28,652 | -33,288 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash from operating activities | 13,35,330 | 17,980 | 22,448 | 22,261 | 19,975 |
| Free cash flow (vendor definition) * | 13,22,242 | 16,348 | 21,400 | 21,153 | 18,553 |
| Dividends paid | -9,87,153 | -12,995 | -14,073 | -16,250 | -14,618 |
| Purchase of PP&E and intangibles | -1,34,781 | -1,444 | -1,048 | -1,108 | -1,422 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding * | 271.23 | 270.74 | 270.78 | 271.06 | 270.76 |
| Quarterly profit and loss (₹ crore) | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 29,890 | 30,246 | 30,349 | 31,942 | 33,872 | 33,981 | 34,579 | 35,620 |
| Cost of revenue (vendor classification) * | 17,220 | 18,786 | 18,106 | 18,921 | 19,639 | 20,086 | 20,542 | |
| Other operating costs (vendor classification) * | 1,936 | -1,107 | 2,070 | 2,046 | 2,149 | 2,059 | ||
| EBITDA (vendor classification) * | 7,337 | 6,931 | 6,491 | 7,797 | 7,034 | 7,231 | ||
| EBIT (EBITDA less D&A; before other income) | 5,821 | 5,442 | 4,942 | 5,502 | 6,285 | 5,620 | 5,831 | 6,465 |
| Finance costs | 166.0 | 156.0 | 209.0 | 215.0 | 205.0 | 240.0 | 84.0 | n.r. |
| Profit before tax | 6,132 | 5,735 | 5,189 | 5,702 | 5,509 | 5,702 | 6,108 | 6,467 |
| Total tax expense | 1,538 | 1,426 | 1,345 | 1,466 | 1,427 | 1,212 | 1,482 | 1,335 |
| Profit for the period | 4,594 | 4,309 | 3,844 | 4,236 | 4,082 | 4,490 | 4,626 | 5,132 |
| Diluted EPS (INR, period) | 16.93 | 15.88 | 14.17 | 15.61 | 15.05 | 16.56 | 17.06 | 18.89 |
| Purchase of stock-in-trade + change in inventories | 644.0 | 489.0 | 508.0 | 620.0 | 772.0 | 709.0 | 850.0 | n.r. |
| Employee benefits expense | 16,576 | 17,246 | 17,598 | 18,301 | 18,867 | 19,377 | 19,692 | n.r. |
| Outsourcing costs + other expenses | 5,810 | 6,029 | 6,208 | 6,476 | 6,821 | 7,183 | 7,167 | n.r. |
| EBITDA (revenue less cogs, employee, other expenses) | 6,860 | 6,482 | 6,035 | 6,545 | 7,412 | 6,712 | 6,870 | 7,477 |
| Depreciation and amortisation | 1,039 | 1,040 | 1,093 | 1,043 | 1,127 | 1,092 | 1,039 | 1,012 |
| Other income | 477.0 | 449.0 | 456.0 | 415.0 | 385.0 | 322.0 | 361.0 | n.r. |
| Exceptional items (negative = charge) | 0.00 | 0.00 | 0.00 | 0.00 | -956.0 | 0.00 | 0.00 | 0.00 |
| Profit attributable to non-controlling interests | 3.00 | 2.00 | 1.00 | 1.00 | 6.00 | 2.00 | 2.00 | n.r. |
| Profit attributable to owners | 4,591 | 4,307 | 3,843 | 4,235 | 4,076 | 4,488 | 4,624 | 5,132 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 9,748.7% | -98.6% | 8.3% | 6.5% | 11.2% |
| EBITDA margin | 22.0% | 21.8% | 20.6% | ||
| Net margin | 14.3% | 14.9% | 12.8% | ||
| Return on equity | 23.5% | 25.2% | 23.0% | ||
| Return on capital employed | 50.0% | 0.7% | 28.4% | 30.1% | 30.4% |
| Return on assets | 16.3% | 16.9% | 15.0% | ||
| Net debt (₹ crore) | -24,866 | -28,652 | -33,288 | ||
| Net debt / EBITDA | -1.03x | -1.12x | -1.24x | ||
| Interest cover | 54.1x | 56.2x | 36.2x | 33.3x | 25.8x |
| Asset turnover | 1.90x | 0.03x | 1.14x | 1.14x | 1.17x |
| Receivable days | 66 | 70 | 65 | 61 | 66 |
| Inventory days (on revenue) | 1 | 1 | 1 | 0 | 1 |
| Payable days (on revenue) | 10 | 9 | 9 | 9 | 10 |
| Cash conversion | 1.43x | 1.28x | 1.20x | ||
| Capex intensity | 1.8% | 1.4% | 1.0% | 0.9% | 1.1% |
| Free cash flow (₹ crore) | 12,00,549 | 16,536 | 21,400 | 21,153 | 18,553 |
| Dividend payout | 89.6% | 93.4% | 87.8% | ||
| EPS, diluted (₹) | 49.77 | 54.79 | 57.86 | 64.09 | 61.36 |
| Book value per share (₹) | 19,815 | 241.6 | 252.1 | 257.0 | 277.7 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (revenue less cogs, employee, other expenses) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Net debt (company net cash, negative = net cash).
- Net debt / EBITDA: net debt / EBITDA (revenue less cogs, employee, other expenses).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS (INR, period)).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 12 Oct 2026); market data at the close of 12 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on HCL Technologies includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on HCL Technologies
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- Research report
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Prices are the last close on the NSE, 9 Oct 2026. Research from Mool’s report of 12 Oct 2026; page updated 12 Oct 2026.
Mool’s research is written by AI agents and published by Mool Capital Private Limited, a SEBI-registered Research Analyst, registration INH000012449, which is responsible for it. This page shows factual company information and an excerpt of that research; it carries no rating and is not investment advice for any individual. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Read the disclosures.