The shares of the prominent IT consulting company gained up to 2 percent after the cabinet approved an investment of Rs 3,706 crore for India’s sixth semiconductor unit in Jewar, Uttar Pradesh.
With a market capitalization of Rs 4.45 lakh crore, the shares of HCL Technologies Ltd closed at Rs 1,637.75 per share, increasing around 1.07 percent as compared to the previous closing price of Rs 1,620.45 apiece.
Cabinet Outlay
The shares of HCL Technologies Ltd have seen positive movement after its parent company, the HCL Group, received cabinet approval for an investment of Rs 3,706 crore for the sixth semiconductor unit in Jewar, Uttar Pradesh, under the India Semiconductor Mission. The project will be executed in a joint venture between the HCL group and Foxconn.
Furthermore, the unit will manufacture display driver chips for phones, laptops, automobiles, and other display devices, with a monthly capacity of 20,000 wafers and 36 million chips. The facility is expected to create employment for 2,000 individuals, boosting local manufacturing and job opportunities.
India’s sixth semiconductor plant under the India Semiconductor Mission is set to begin commercial production in 2027. With no operational chipmaking facility currently, Prime Minister Narendra Modi has prioritized semiconductor manufacturing to strengthen India’s position in global electronics supply chains and boost domestic high-tech manufacturing capabilities.
Additionally, several semiconductor company’s received government approvals last year, including Tata Group, Kaynes Technology India Ltd, CG Power and Industrial Solutions Ltd, and others.
Operational Highlights
For FY26, the company projects 2–5 percent year-on-year constant currency revenue growth, including services revenue. EBIT margin is expected to range between 18.0 percent and 19.0 percent, reflecting a cautious but stable growth outlook for the fiscal year.
In Q4 FY25, HCLTech’s revenue was driven by IT and Business Services (73.3 percent) and Engineering & R&D Services (17.1 percent), together contributing 90.4 percent with 2.7 percent YoY growth. HCLSoftware saw a 4.9 percent YoY rise but a 12.9 percent QoQ drop. Overall revenue grew 2.9 percent YoY, declining 0.8 percent QoQ.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
