HCLTECH
Large CapHCL Technologies Limited
IT
HCLTech is a global technology company with 227,000+ employees across 60 countries. It delivers AI, digital, engineering, cloud, and software capabilities, offering a broad portfolio of technology services and products across major verticals. FY26 consolidated revenue was $14.7 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 argues for patience, and recent execution is mixed.
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 31 Mar 2026
Bad · 22/100margin compression · Rev +12% YoY · PAT +4% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹33,981 Cr | +12.3% | +0.3% |
| EBITDA | ₹6,712 Cr | +3.5% | -9.4% |
| Operating margin | 20.0% | -100 bps | -200 bps |
| PAT | ₹4,490 Cr | +4.2% | +10.0% |
| PAT margin | 13.2% | -104 bps | +116 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
HCLTech reported Q4 FY26 CC revenue down 3.3% QoQ and up 2.4% YoY, missing expectations due to softness in discretionary spend. Annual FY26 CC revenue grew 3.9%, with EBIT up 4.6% and Net Income flat. FY27 guidance projects 1.0%-4.0% CC revenue growth and 17.5%-18.5% EBIT margin.
HCLTech's Q4 FY26 performance was below expectations, with sequential CC revenue decline and HCLSoftware revenue weakness, indicating demand challenges. While annual CC revenue growth was decent, the flat Net Income and modest FY27 guidance suggest a tougher operating environment and potential margin pressure from restructuring costs.
Services Revenue by Vertical (Q4 FY26)
Latest issuer-disclosed distribution across 7 reported categories.
AI-led Service Offerings
New AI-led service offerings are gaining traction, with annualized Advanced AI revenues crossing $620 million in Q4.
Technology and Services Vertical
The Technology and Services vertical showed strong YoY CC growth of 17.8% in Q4 FY26 and 15.0% for FY26.
Rest of World (ROW) Geography
The ROW geography segment delivered robust YoY CC growth of 16.6% in Q4 FY26 and 17.8% for FY26.
Public Services Vertical
Public Services vertical recorded YoY CC growth of 10.7% in Q4 FY26 and 4.6% for FY26.
Total People Count
Total People Count reached 227,181, with a net addition of 3,761 for FY26 and 802 in Q4 FY26.
Freshers Added
The company added 11,744 freshers in FY26, including 1,712 in Q4 FY26.
Global Economy Pivot to AI
Management states the global economy is pivoting to the AI era, creating multi-decade value creation opportunities.
AI-led Service Traction
New AI-led service offerings are gaining market traction, reflected in annualized Advanced AI revenues.
Expanded Strategic Collaborations
Expanded collaborations with MIT Media Lab, Google Gemini, AWS, and NVIDIA for AI and cloud initiatives.
Uncertain Demand Environment
The year was marked by an uncertain demand environment, impacting overall performance.
Softness in Discretionary Spend
Performance came below expectations due to softness in certain parts of the business from lower discretionary spend.
Delayed Decision Making
Delayed decision making by clients contributed to performance below expectations.
HCLSoftware Revenue Decline
HCLSoftware's Constant Currency Revenue was down 14.1% YoY in Q4 FY26 and 4.1% for FY26.
Intense Competition
The company faces intense competition in IT services, Business Process Outsourcing, and consulting services.
Wage Increases
Wage increases in India pose a risk to cost advantage.
Client Concentration
Top 5 clients contribute 11.9% of LTM revenue, and Top 20 clients contribute 28.5%, indicating concentration risk.
Reduced Demand for Technology
Reduced demand for technology in key focus areas could impact future growth.
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 assessing annual growth trends and overall business health, especially for a global IT services firm. QoQ comparison is vital for tracking sequential momentum, project execution, and immediate demand shifts, which are highly relevant in the IT sector.
Company Revenue Growth (CC)
FY26 Constant Currency (CC) Revenue up 3.9%; Q4 FY26 CC Revenue down 3.3% QoQ & up 2.4% YoY.
Services Revenue Growth (CC)
FY26 HCLTech Services CC Revenue up 4.8%; Q4 FY26 HCLTech Services CC Revenue down 0.1% QoQ & up 4.2% YoY.
HCLSoftware Revenue Growth (CC)
FY26 HCLSoftware CC Revenue down 4.1%; Q4 FY26 HCLSoftware CC Revenue down 14.1% YoY.
EBIT Margin (excl. restructuring)
FY26 EBIT Margin excl. restructuring at 17.9%; Q4 FY26 EBIT Margin excl. restructuring at 17.7%.
FY27 Revenue Growth Guidance
Company Revenue growth expected to be between 1.0% - 4.0% YoY in Constant Currency for FY27.
FY27 EBIT Margin Guidance
EBIT margin is expected to be between 17.5% – 18.5% for FY27.
Priority on AI Opportunities
Management's #1 priority in FY27 is to position the company to leverage AI opportunities for multi-decade value creation.
Evolving Portfolio for AI Era
The company is evolving its 'all-weather portfolio' to adapt to fast-changing technology cycles in the AI era.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Company Revenue Growth (CC) | FY26: 3.9% YoY; Q4 FY26: 2.4% YoY | Achieving FY27 guidance of 1.0% - 4.0% YoY CC growth. |
| EBIT Margin | FY26: 17.2% (reported); Q4 FY26: 16.5% (reported) | Maintaining or improving margins within the FY27 guidance of 17.5% – 18.5%. |
| Advanced AI Revenue | Annualized $620M in Q4 FY26 | Continued growth and increasing contribution from AI-led service offerings. |
| HCLSoftware Performance | FY26 CC Revenue down 4.1%; Q4 FY26 CC Revenue down 14.1% YoY | Stabilization and return to positive growth for HCLSoftware revenue and ARR. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
43NeutralSMA20 -15.2% / mo · near 52W low
Technical chart
HCLTECHweekly · 6M-31.5%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 33.
- SMA20 falling (~18.0% over last month) — short-term momentum negative.
- RSI(14) at 33 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 5.9%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 55.8%.
Main drags
- Valuation is weaker at 13/30; verify the latest quarterly trend.
- Growth is weaker at 11/25; verify the latest quarterly trend.
- Quality is weaker at 15/20; 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
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 97th percentile of the scored universe and 96th percentile within IT. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 60.9%. Key concern: 1/4 latest quarters had positive YoY PAT growth.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 96th pctile, median 68 · Large: 89th pctile, median 74
102 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy 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 5.9%.
- ▸12 years of positive FCF.
Trust risks
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 18.00
- P/B
- 4.16
- EV/EBITDA
- 10.21
- Market Cap
- 312424.00Cr
Profitability
- ROE
- 24.00%
- ROCE
- 30.60%
- ROA
- 14.32%
- Dividend Y
- 4.69%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- 6.00%
Balance Sheet
- Debt/Equity
- 0.07
- Interest Coverage
- 30.78×
- Altman Z
- 7.57
- Book Value
- 277.00
Cash Flow
- FCF Yield
- 5.92%
- FCF Positive Y
- 12/5
- OCF
- 19975.00 Cr
- EPS TTM
- 61.33
Shareholding
- Promoter Hold
- 60.86%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 7%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.