HCL Tech has become the third largest IT company in India by revenue, overtaking Wipro. 

The company has overtaken its competitor in terms of revenue, profits and market capitalisation by a margin, with a market cap of ₹2.5 lakh crore, compared to Wipro’s ₹2.2 lakh crore.

However, being the third largest IT company in India by revenue for the last four years, both the companies’ stocks have witnessed a massive drawdown—wherein HCL Tech’s shares fell much lower compared to Wipro. 

Besides the ever-changing market dynamics for the two tech giants, all IT stocks this year have witnessed significant drops—especially Wipro, which was widely believed to be an underperformer in this arena.

The share price of HCL Tech has fallen by 20.76 per cent, with Wipro taking a fall of 35.58 per cent. A report further claimed that the major drop in share prices could be one of the reasons behind Wipro’s diminished market cap. 

The Indian IT sector has been affected by high attrition rates, inflation, and chain issues, along with witnessing unprecedented boom for two years that led JP Morgan to downgrade the Indian IT sector and go “underweight” over revenue concerns. 

HCL Technologies was founded in 1991 and is fairly younger in comparison to its competitor, Wipro, that was established in 1945. HCL initially established itself as a maker of vegetable oils and transformed into a full-fledged IT firm only in the 1980s.