HCL Technologies Ltd.

NSE: HCLTECH · Computers - Software & Consulting

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52W Range₹1,030 – ₹1,780

Snapshot

Unlock HCL Technologies Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

HCL Technologies is a global IT services company providing software development, business process outsourcing, and infrastructure management. It operates through three primary segments: IT and Business Services, Engineering and R&D Services, and Products & Platforms.

Business Model

The company generates revenue through multi-year service contracts, digital transformation engagements, and the licensing of proprietary software products and platforms. It leverages a global delivery model to provide hybrid cloud, cybersecurity, and engineering solutions across diverse industry verticals.

Growth Outlook

Growth is driven by increasing enterprise demand for cloud migration, digital workplace modernisation, and engineering services. The company continues to invest in organic IP-based software and IoT solutions to capture market share in emerging technology sectors.

Key Risks

  • Currency Volatility. As a global exporter of IT services, the company is exposed to fluctuations in foreign exchange rates, particularly the USD/INR pair.
  • Talent Retention. The highly competitive nature of the IT services industry poses a risk to margins due to rising wage costs and the need to retain specialised technical talent.
  • Client Concentration. A significant portion of revenue is derived from large enterprise clients, making the company vulnerable to budget cuts or contract terminations within key accounts.
  • Geopolitical Instability. Global economic slowdowns or restrictive visa policies in key markets like the US and Europe could adversely impact service delivery and operational costs.

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Key Metrics

REVENUE

₹1,38,052 Cr

TTM · consolidated

+12.8%YoY

NET PROFIT

₹18,330 Cr

TTM · consolidated

+7.9%YoY

EPS

₹67.70

TTM · consolidated

+8.1%YoY

RETURN ON EQUITY

24.9%

TTM · consolidated

+1.1 ppYoY

RETURN ON CAPITAL EMPLOYED

29.8%

TTM · consolidated

+0.3 ppYoY

P/E

21.2×

Q2 FY27 · consolidated

21.2 vs 29.9x5Y avg

EV/EBITDA

12.7x

Q2 FY27 · consolidated

12.7 vs 18.2x5Y avg

EBITDA MARGIN

21.6%

TTM · consolidated

-1.0 ppYoY

NET PROFIT MARGIN

14.4%

Q2 FY27 · consolidated

+1.1 ppYoY

DEBT TO EQUITY

0.0x

Q2 FY27 · consolidated

-0.02xYoY

Peers · Computers - Software & Consulting

CompanyMkt CapP/E (TTM)EV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
HCL Technologies Ltd.HCLTECH
₹3.88L Cr21.2×12.7112.8%21.6%24.9%29.8%-7.0%
Infosys Ltd.INFY
₹4.81L Cr15.3×9.3111.7%25.9%30.4%38.0%-21.7%
Wipro Ltd.WIPRO
₹1.96L Cr15.4×9.218.2%23.0%16.1%20.2%-18.4%
Tech Mahindra Ltd.TECHM
₹1.76L Cr28.7×16.9413.6%16.6%19.5%24.3%+25.4%
Persistent Systems Ltd.PERSISTENT
₹95,407 Cr52.5×31.2627.1%17.9%22.9%29.0%+2.3%
Coforge Ltd.COFORGE
₹90,589 Cr40.9×23.7542.6%19.5%14.4%14.0%+18.0%

As of Q2 FY27

Financials