Building the modelReading this company's statements and building the valuation. Usually under 10 seconds.
HCL Technologies Limited (HCLTECH)
The model for this company lays out financial schedules across multiple columns. Open it on a viewport at least 900px wide to work with the figures.
MINIMUM VIEWPORT: 900PX
DCF Implied Price
₹992.68
-30.7% vs mkt
From NSE filing
Market Price
₹1,432.10
As of 2026-11-04 · Close
Statements
FY26
Ended 2026-03-31
Enterprise Value
₹2.57L Cr
PV FCFF + PV TV
Terminal value 66.7% of EV
Equity Value
₹2.69L Cr
Net Debt Adjusted
WACC
13.80%
CAPM / Capital Cost
Terminal Growth (g)
4.00%
Gordon Growth
Valuation Drivers
base scenario
WACC & Capital Cost
Risk-Free Rate (Rf)6.78%
Beta (β)1.00
Equity Risk Premium (ERP)7.08%
Cost of Equity (Ke)13.86%
Pre-Tax Cost of Debt (Kd)9.67%
Effective Tax Rate (t)25.17%
After-Tax Cost of Debt7.24%
Weights (Equity / Debt)99.0% / 1.0%
Weighted Average Cost of Capital13.80%
Source: CAPM: Rfr=6.78% (INDIA market default for rfr (10Y sovereign yield %)), Beta=1.00 (INDIA market default for beta (beta vs index), Blume-adjusted), ERP=7.08% (INDIA market default for erp (Equity Risk Premium %)). Cost of Equity=13.86% = Rf + Beta x ERP. Pre-tax Cost of Debt=9.67% (after-tax 7.24%). Capital Weights: Equity=99.0%, Debt=1.0%.
Return Metrics & Financial Health
Terminal ROIC
51.8%
+38.0% vs WACC
FCF Yield (Yr 1)
7.7%
FCFF / Equity Val
Implied EV / EBIT
8.8x
Forward Multiple
Net Debt Position
+₹11,601
Net Cash Balance
FCFF & DCF Valuation Schedule
PV FCFF: ₹85,699 Cr
|PV TV: ₹1.71L Cr
|Net: +₹11,601@ 2026-03-31
|Price: ₹992.68
| DCF Line Item (Mid-Year) | FY27 | FY28 | FY29 | FY30 | FY31 |
|---|---|---|---|---|---|
EBIT (Operating Profit) EBIT (Operating Profit)Definition Earnings Before Interest and Taxes: core operating profitability before capital structure and taxes. Formula: Revenue - COGS - Operating Expenses - D&A | 29,125 | 31,368 | 33,783 | 36,384 | 39,186 |
Tax Rate % Tax Rate %Definition Effective corporate tax rate applied to operating earnings for NOPAT calculation. Formula: Taxes / PBT | 23.6% | 24.0% | 24.4% | 24.8% | 25.2% |
NOPAT NOPATDefinition Net Operating Profit After Tax: un-levered profit generated purely by core operations. Formula: EBIT × (1 - Effective Tax Rate) | 22,246 | 23,836 | 25,540 | 27,368 | 29,323 |
+ D&A + D&ADefinition Depreciation & Amortization added back because it is a non-cash accounting expense. Formula: Cash Flow Statement D&A Add-back | 5,415 | 5,832 | 6,281 | 6,764 | 7,285 |
− CapEx − CapExDefinition Capital Expenditures: net cash spent on property, plant, equipment, and intangible assets. Formula: Cash Flow Statement Capital Investments | (5,364) | (5,777) | (6,222) | (6,701) | (7,217) |
± ΔNWC ± ΔNWCDefinition Change in Non-Cash Operating Working Capital: cash invested or freed up in working capital. Formula: − (Δ Receivables + Δ Inventory − Δ Payables) | -1,728 | -1,866 | -2,009 | -2,164 | -2,331 |
= FCFF (Free Cash Flow) = FCFF (Free Cash Flow)Definition Free Cash Flow to Firm: unlevered cash flow available to all debt and equity capital providers. Formula: NOPAT + D&A − CapEx − ΔNWC − Stock Comp | 20,568 | 22,025 | 23,589 | 25,267 | 27,060 |
Discount Factor (Mid-Year) Discount Factor (Mid-Year)Definition Mid-year discount factor assuming cash flows arrive continuously throughout the year. Formula: 1 / (1 + WACC)^(t - 0.5) | 0.9375 | 0.8236 | 0.7238 | 0.6361 | 0.5590 |
PV(FCFF) PV(FCFF)Definition Present Value of Free Cash Flow discounted back to current fiscal year. Formula: FCFF × Mid-Year Discount Factor | 19,283 | 18,140 | 17,075 | 16,073 | 15,128 |
| Σ PV of Explicit Forecasts (PV FCFF) | ₹85,699 | ||||
| + PV of Terminal Value (4.0% g, 67% of EV) | ₹171,296 | ||||
| Enterprise Value (EV) | ₹256,995 | ||||
| + Net Cash & Liquid Assets | + ₹11,601 | ||||
| Equity Value DCF Implied Share Price | ₹268,596 ₹992.68 / share | ||||
WACC: 13.80%Cost of Equity: 13.86%Cost of Debt: 7.24%Equity Wt: 99.0%
Terminal ROIC: 51.8% (Reinvest 7.7%)
Financial Forecast Summary
| Line Item | FY27 | FY28 | FY29 | FY30 | FY31 |
|---|---|---|---|---|---|
| Revenue | ₹137,318 | ₹147,891↑ | ₹159,279↑ | ₹171,543↑ | ₹184,752↑ |
| EBITDA | ₹34,540 | ₹37,199↑ | ₹40,064↑ | ₹43,149↑ | ₹46,471↑ |
| EBIT (Operating Profit) | ₹29,125 | ₹31,368↑ | ₹33,783↑ | ₹36,384↑ | ₹39,186↑ |
| Net Profit (PAT) | ₹23,651 | ₹25,235↑ | ₹26,931↑ | ₹28,752↑ | ₹30,700↑ |
| D&A | ₹5,415 | ₹5,832↑ | ₹6,281↑ | ₹6,764↑ | ₹7,285↑ |
| CapEx | ₹5,364 | ₹5,777↑ | ₹6,222↑ | ₹6,701↑ | ₹7,217↑ |
| Operating Cash Flow | ₹27,338 | ₹29,201↑ | ₹31,203↑ | ₹33,353↑ | ₹35,654↑ |