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Tech Mahindra Limited
(TECHM)
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Rating:65Neutral
Price Target:
₹1,775.00
▲(13.76% Upside)
Action:Reiterated
Date:04/23/26
The score is led by solid financial stability (low leverage and consistently positive cash generation), offset by profitability volatility. Technicals are mixed with improving shorter-term trends but weaker longer-term positioning, and valuation is restrained by a higher P/E despite a supportive dividend yield.
Positive Factors
Diversified IT services and telecom expertise
Tech Mahindra’s broad service portfolio across applications, cloud, cybersecurity, network/telecom, engineering and BPS spreads revenue across products and end markets. Its telecom domain expertise and systems-integration capabilities support repeatable managed-service revenue and durable client relationships over time.
Negative Factors
Profitability and net income volatility
Substantial swings in net income reduce earnings predictability and complicate multi-year planning. Volatility can constrain consistent reinvestment or shareholder returns and may reflect exposure to deal timing, margin pressure, one-off items or operational execution risks that persist across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified IT services and telecom expertise
Tech Mahindra’s broad service portfolio across applications, cloud, cybersecurity, network/telecom, engineering and BPS spreads revenue across products and end markets. Its telecom domain expertise and systems-integration capabilities support repeatable managed-service revenue and durable client relationships over time.
Read all positive factors
Tech Mahindra Limited (TECHM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.62T
Dividend Yield3.09%
Average Volume (3M)51.78K
Price to Earnings (P/E)28.5
Beta (1Y)0.75
Revenue Growth10.95%
EPS Growth12.97%
CountryIN
Employees148,731
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)57.94
Shares Outstanding980,084,800
10 Day Avg. Volume74,125
30 Day Avg. Volume51,777
Financial Highlights & Ratios
PEG Ratio1.95
Price to Book (P/B)4.14
Price to Sales (P/S)2.16
P/FCF Ratio22.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,669.33Price Target Upside6.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)76.88
Revenue Forecast (FY)₹633.46B
Tech Mahindra Limited Business Overview & Revenue Model
Company Description
Established in 1986 and based in Pune, India, Tech Mahindra Limited operates as a global provider of information technology (IT) services and business solutions. Its reach extends across the Americas, Europe, India, and other international markets...
How the Company Makes Money
Tech Mahindra primarily makes money by delivering outsourced IT and business services to enterprise clients under commercial contracts, recognizing revenue as services are performed (or as milestones/deliverables are accepted, depending on contrac...
Tech Mahindra Limited Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 592.16B | 568.15B | 529.88B | 519.96B | 532.90B | 446.46B |
| Gross Profit | 213.06B | 202.37B | 167.32B | 154.37B | 169.77B | 133.11B |
| EBITDA | 92.67B | 90.64B | 63.34B | 44.75B | 75.06B | 91.35B |
| Net Income | 51.35B | 48.11B | 42.52B | 23.58B | 48.31B | 55.66B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 493.69B | 444.38B | 434.24B | 461.53B | 448.71B |
| Cash, Cash Equivalents and Short-Term Investments | 83.86B | 84.25B | 73.79B | 73.23B | 69.11B | 82.90B |
| Total Debt | 0.00 | 21.86B | 24.32B | 25.37B | 27.40B | 26.18B |
| Total Liabilities | -300.77B | 192.92B | 167.03B | 162.77B | 177.59B | 174.90B |
| Stockholders Equity | 300.77B | 296.15B | 273.62B | 266.69B | 279.25B | 268.86B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 54.76B | 51.92B | 55.85B | 45.57B | 43.27B |
| Operating Cash Flow | 0.00 | 61.72B | 57.86B | 63.76B | 55.72B | 52.85B |
| Investing Cash Flow | 0.00 | -4.09B | -232.00M | -13.14B | -2.79B | 4.82B |
| Financing Cash Flow | 0.00 | -51.30B | -57.99B | -47.67B | -50.78B | -46.67B |
Tech Mahindra Limited Technical Analysis
Positive
1560.30
Price Trends
1464.53
Positive
1421.91
Positive
1459.07
Positive
Market Momentum
41.58
Negative
64.73
Neutral
68.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TECHM, the sentiment is Positive. The current price of 1560.3 is above the 20-day moving average (MA) of 1536.54, above the 50-day MA of 1464.53, and above the 200-day MA of 1459.07, indicating a bullish trend. The MACD of 41.58 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 68.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TECHM.
Tech Mahindra Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹8.56T | 17.19 | ― | 4.92% | 7.70% | 1.07% | |
74 Outperform | ₹4.59T | 14.44 | ― | 4.61% | 5.76% | 12.64% | |
70 Outperform | ₹3.65T | 20.83 | ― | 4.72% | 12.59% | 2.65% | |
67 Neutral | ₹1.29T | 26.78 | ― | 2.80% | 13.87% | 10.72% | |
67 Neutral | ₹1.82T | 14.54 | ― | 6.21% | 6.40% | -1.86% | |
65 Neutral | ₹1.62T | 28.50 | ― | 3.27% | 10.95% | 12.97% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:TECHM
Tech Mahindra Limited
1,651.60
228.43
16.05%
IN:HCLTECH
HCL Technologies Limited
1,346.50
-63.93
-4.53%
IN:INFY
Infosys Limited
1,130.00
-297.15
-20.82%
IN:LTIM
LTIMindtree Limited
4,359.20
-642.13
-12.84%
IN:TCS
Tata Consultancy Services Limited
2,365.60
-586.74
-19.87%
IN:WIPRO
Wipro Limited
183.60
-53.55
-22.58%
Tech Mahindra Limited Corporate Events
Tech Mahindra to acquire Brazilian IT firm Alyis to bolster Orange partnership in LATAM
Jul 1, 2026
Tech Mahindra’s Brazilian subsidiary has signed a Quota Purchase Agreement with Orange Business Services Brasil to acquire Alyis Serviços Técnicos LTDA, an IT services provider to telecom companies in Brazil with around 270 employe...
Tech Mahindra Schedules Q1 FY27 Earnings Call for Analysts and Investors
Jun 30, 2026
Tech Mahindra has notified the stock exchanges that it will hold a quarterly earnings conference call for the first quarter of FY27, following the approval of its audited standalone and consolidated financial results for the period ended 30 June 2...
Tech Mahindra Sets July 17, 2026 Virtual AGM, Releases FY26 Integrated Report
Jun 23, 2026
Tech Mahindra has announced that its 39th Annual General Meeting will be held on July 17, 2026, at 3:30 p.m. IST via video conferencing or other audio-visual means, in line with regulatory guidance from Indian authorities. The company has released...
Tech Mahindra Files Assured Sustainability Report for FY 2025-26
Jun 23, 2026
Tech Mahindra Limited has released its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, complying with SEBI’s Listing Regulations on sustainability and responsible business disclosures. The report is p...
Tech Mahindra Sets July 17 Virtual AGM, Urges Action on Unclaimed Dividends
Jun 23, 2026
Tech Mahindra has notified exchanges and shareholders that its 39th Annual General Meeting will be held on July 17, 2026, via video conferencing or other audio-visual means in line with Indian corporate and securities regulations. The company has ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.