WatchTalking point
Profit lagging revenue
Revenue grew 11.2% but profit declined 4.3%, so the company kept less of each rupee of revenue as profit.
Importance 67 / 95 · growth
HCL Technologies · Research view
HCL Technologies Ltd
NSE: HCLTECHBSE: 532281ISIN INE860A01027Face value ₹2standalone
₹1,246
+1.71% · 2026-10-01 · 52-wk ₹1,034–₹1,730
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
WatchTalking point
Growing, but less profitably
Revenue grew 11.2% but EBITDA margin fell 2.2 percentage points to 21.7%, so the company kept less of each rupee of revenue as operating profit.
Importance 62 / 95 · growth
ConcernTalking point
Margins at a multi-year low
EBITDA margin of 21.7% is the thinnest in 4 years (prior range 23.4% to 25.2%).
Importance 57 / 95 · profitability
Section 03 · The company
Who is this company?
Classified by the exchange under Information Technology › Information Technology › IT - Software › Computers - Software & Consulting.
- Market cap
- ₹3.38 L cr
- FY2026 revenue
- ₹55,031 cr
- FY2026 net profit
- ₹7,627 cr
- Net worth
- ₹25,898 cr
- Total debt
- ₹10 cr
- EPS (basic)
- ₹28.17
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 9 computers - software & consulting.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Watch
Revenue grew 11.2% but profit declined 4.3%, so the company kept less of each rupee of revenue as profit.
Rule PROFIT_SLOWER_THAN_REVENUE
- Revenue growth per year
- +7.9%over 4 years
- Revenue growth
- +7.7%vs last year
- Net profit growth
- −37.8%vs last year
- Change in net profit since FY22
- −30%
Revenue grew 11.2% but EBITDA margin fell 2.2 percentage points to 21.7%, so the company kept less of each rupee of revenue as operating profit.
Revenue has compounded at 11.0% a year over 4 years (₹85,651 → ₹1,30,144) — steady rather than rapid.
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 net profit was ₹4,626 cr, up 20.3% from ₹3,844 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Strength
Q1 FY27 revenue was ₹34,579 cr, up 13.9% from ₹30,349 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Strength
Q1 FY27 interest (finance cost) was ₹84 cr, down 59.8% from ₹209 cr a year earlier.
Rule QTR_INTEREST_EXPENSE_CHANGE_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 28,862 | — | 4,237 | — | 14.7% |
| Q3 FY25 | 29,890 | +5.1% | 4,594 | +5.6% | 15.4% |
| Q4 FY25 | 30,246 | +6.1% | 4,309 | +7.9% | 14.2% |
| Q1 FY26 | 30,349 | +8.2% | 3,844 | −9.7% | 12.7% |
| Q2 FY26 | 31,942 | +10.7% | 4,236 | −0.0% | 13.3% |
| Q3 FY26 | 33,872 | +13.3% | 4,082 | −11.1% | 12.1% |
| Q4 FY26 | 33,981 | +12.3% | 4,490 | +4.2% | 13.2% |
| Q1 FY27 | 34,579 | +13.9% | 4,626 | +20.3% | 13.4% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹1,34,374 crTTM
- EBITDA
- ₹29,022 crTTM
- EBIT
- ₹24,721 crTTM
- PBT
- ₹23,021 crTTM
- Net profit
- ₹17,434 crTTM
C. Corporate actions
17 Jul 2026DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
24 Apr 2026DividendInterim Dividend - Rs. - 24.0000 — ₹24.00/share
16 Jan 2026DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
17 Oct 2025DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
18 Jul 2025DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
28 Apr 2025DividendInterim Dividend - Rs. - 18.0000 — ₹18.00/share
17 Jan 2025DividendSpecial Dividend - Rs. - 6.0000 — ₹6.00/share
17 Jan 2025DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
22 Oct 2024DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
23 Jul 2024DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
7 May 2024DividendInterim Dividend - Rs. - 18.0000 — ₹18.00/share
19 Jan 2024DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
20 Oct 2023DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
20 Jul 2023DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
28 Apr 2023DividendInterim Dividend - Rs. - 18.0000 — ₹18.00/share
19 Jan 2023DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
19 Oct 2022DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
19 Jul 2022DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
28 Apr 2022DividendInterim Dividend - Rs. - 18.0000 — ₹18.00/share
20 Jan 2022DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
21 Oct 2021DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
27 Jul 2021DividendInterim Dividend - Rs. - 6.0000 — ₹6.00/share
29 Apr 2021DividendInterim Dividend - Rs. - 6.0000 — ₹6.00/share
29 Apr 2021DividendSpecial Dividend - Rs. - 10.0000 — ₹10.00/share
21 Jan 2021DividendInterim Dividend - Rs. - 4.0000 — ₹4.00/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Concern
EBITDA margin of 21.7% is the thinnest in 4 years (prior range 23.4% to 25.2%).
Rule MARGIN_AT_MULTI_YEAR_LOW
- EBITDA margin now
- 35.0%
- 5-year range
- 35.0–39.4%
- ROE FY2026
- 25.1%
- ROCE FY2026
- 55.7%
ROE declined from 25.2% to 23.0% year on year.
EBITDA margin fell from 23.9% to 21.7% of revenue.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Strength
Operating cash flow has matched or exceeded reported profit in 5 of the last 5 profit-making years (latest 1.20×).
Rule CFO_CONSISTENTLY_EXCEEDS_PAT
Operating cash flowNet profit
- Total debt
- ₹10 cr
- Operating cash flow ÷ net profit
- 1.59×FY2026
- Free cash flow
- ₹11,414 cr
- Current ratio
- 1.49×
Free cash flow has been positive in 5 of the last 5 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 9 computers - software & consulting (FY2026, consolidated). No peer-relative rule fired for this company.
Revenue growth
HCLTECH · 5th of 9 · set median 11.2%
EBITDA margin
HCLTECH · 4th of 9 · set median 20.8%
Return on equity
HCLTECH · 4th of 9 · set median 21.3%
P/E ratio
HCLTECH · 4th of 9 · set median 22.5×
- P / E
- 19.4×TTM to Jun 26
- P / B
- 4.5×latest book
- P / S
- 2.5×TTM sales
- Earnings yield
- 5.2%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 20.3× · P/S 2.6× · ROE 23.0%.
Section 09 · The stock
How has the stock performed?
Long-term price performance is shown above.
- 1-year return
- −10.3%
- 3-year return
- +0.9%
- 5-year return
- −2.2%
- From 52-wk high
- −28.0%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹1,298
- vs 200-day avg
- Below₹1,362
- RSI (14)
- 45.5neutral
- MACD histogram
- -1.5
- From 52-wk high
- −28.0%
- From 52-wk low
- +20.5%
- 30-day volatility
- 29.5%ann.
- 6-month return
- −9.3%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchProfit lagging revenueRevenue grew 11.2% but profit declined 4.3%, so the company kept less of each rupee of revenue as profit.PROFIT_SLOWER_THAN_REVENUE · conviction 67
- WatchGrowing, but less profitablyRevenue grew 11.2% but EBITDA margin fell 2.2 percentage points to 21.7%, so the company kept less of each rupee of revenue as operating profit.REVENUE_UP_MARGIN_DOWN · conviction 62
- ConcernMargins at a multi-year lowEBITDA margin of 21.7% is the thinnest in 4 years (prior range 23.4% to 25.2%).MARGIN_AT_MULTI_YEAR_LOW · conviction 57
- ConcernReturns decliningROE declined from 25.2% to 23.0% year on year.ROE_DETERIORATED_YOY · conviction 41
- ConcernMargins compressingEBITDA margin fell from 23.9% to 21.7% of revenue.MARGIN_COMPRESSED_YOY · conviction 40
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 40,638 | 46,276 | 48,118 | 51,105 | 55,031 |
| Total income | 41,518 | 47,307 | 49,194 | 52,339 | 57,236 |
| EBITDA | 15,992 | 17,274 | 17,952 | 18,950 | 19,264 |
| Profit before tax | 13,268 | 14,716 | 15,456 | 16,474 | 10,024 |
| Net profit | 10,874 | 11,459 | 11,674 | 12,266 | 7,627 |
| EPS (₹) | 40.1 | 42.3 | 43.1 | 45.3 | 28.2 |
| Net worth | 42,591 | 41,104 | 39,470 | 34,940 | 25,898 |
| Total debt | 226 | 191 | 53 | 26 | 10 |
| Operating cash flow | 10,591 | 13,538 | 15,282 | 15,991 | 12,129 |
| Free cash flow | 9,844 | 12,945 | 14,903 | 15,552 | 11,414 |
| Ratio | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth YoY | — | 13.9 | 4.0 | 6.2 | 7.7 |
| Profit growth YoY | — | 5.4 | 1.9 | 5.1 | -37.8 |
| Profitability | |||||
| EBITDA margin % | 39.4 | 37.3 | 37.3 | 37.1 | 35.0 |
| Net margin % | 26.2 | 24.2 | 23.7 | 23.4 | 13.3 |
| Return on equity % | 25.5 | 27.4 | 29.0 | 33.0 | 25.1 |
| Return on capital % | 31.2 | 35.3 | 38.6 | 44.7 | 55.7 |
| Leverage & cash | |||||
| Debt to equity | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash flow ÷ profit | 0.97 | 1.18 | 1.31 | 1.30 | 1.59 |
| Current ratio | 2.97 | 2.68 | 2.82 | 2.07 | 1.49 |