This strategic move reflects LIC’s confidence in HCL Technologies’ robust financial performance
Life Insurance Corporation of India (LIC) has ascended its holding in HCL Technologies to 5.002% by gaining another 0.166% through open market purchases. This building move only evidences the faith of LIC in the extremely flourishing financial health and growth of HCL Technologies.
Strategic Investment in HCL Technologies
This investment coincides with LIC’s investment mantra of adding equity holdings in fundamentally strong companies. HCL Technologies, the third-highest IT services company in India, reported an 8% year-on-year consolidated net income increase of ₹ 4,307 crores for the quarter ending March 2025. For this quarter, operating revenues also increased by 6% over the same period last year at ₹ 30,246 crores.
Positive Outlook and Growth Trajectory
The firm anticipates a revenue rise of between 2% and 5% in constant currency for FY26, higher than the projection set by other peers such as Infosys. It also kept EBIT margin guidance intact between 18% to 19% while talking about business profitability alongside growth. Strong deal wins of $2.99 billion for the March 2025 quarter and streamlining of revenue contributions from top customers showcase HCL Technologies’ momentum for growth.
LIC’s Broader Investment Strategy
Such move by LIC becomes a part of the larger strategy in broadening sector-wise investment diversification of its portfolio. In FY25, LIC has also raised its holdings in companies like Patanjali Foods, where its stake grew from 1.77% to 7.66%. Such investments are aimed at enhancing returns and supporting companies with strong growth potential.
LIC’s move to increase its stake in HCL Technologies to over 5% reflects a strategic investment in a company with strong financials and growth prospects. HCL Technologies’ robust performance, positive outlook, and consistent deal wins make it an attractive investment for long-term stakeholders. This investment aligns with LIC’s objective of maximizing returns while supporting companies that contribute significantly to India’s economic growth.
