Fitch Ratings has affirmed its 'A-' rating on HCL Technologies Ltd.'s long-term foreign and local currency issuances with a stable outlook. The agency also affirmed the same rating on HCL Tech’s senior unsecured debt and the $252 million 1.375% notes due 2026 issued by HCL America Inc.

Fitch noted that HCL guarantees 105% of the principal on the notes, calling the guarantee “full and worthy” as it covers both principal and accrued interest.

The rating agency expects HCL Tech to maintain its strong market position in the global IT services industry, backed by its engineering base and AI-driven training initiatives. Fitch forecasts HCL’s EBITDA margin to improve to around 22% in FY26 and FY27, compared to 21.5% in FY24.

An upgrade is seen as unlikely in the near term unless the company significantly grows and diversifies while keeping EBITDA leverage below 1.3x. A downgrade risk could emerge if HCL's market position weakens or if there’s a prolonged drop in pre-dividend free cash flow.