Tech Mahindra Limited (IN:TECHM)
:TECHM
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Tech Mahindra Limited
(TECHM)
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Rating:65Neutral
Price Target:
₹1,689.00
▲(4.71% 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
Low Leverage
A very low debt-to-equity range (~0.07–0.12) gives Tech Mahindra durable financial flexibility to fund multi-year managed contracts, invest in cloud and engineering capacity, pursue selective M&A, and withstand cyclical IT spending downturns without stressing liquidity or credit lines.
Negative Factors
Profitability Volatility
Material swings in net income and margins reduce earnings predictability and make multi‑period planning harder. Persistent volatility can constrain reinvestment, complicate pricing of multi‑year contracts, and weaken stakeholder confidence in sustained margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
A very low debt-to-equity range (~0.07–0.12) gives Tech Mahindra durable financial flexibility to fund multi-year managed contracts, invest in cloud and engineering capacity, pursue selective M&A, and withstand cyclical IT spending downturns without stressing liquidity or credit lines.
Read all positive factors
Tech Mahindra Limited (TECHM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.40T
Dividend Yield2.76%
Average Volume (3M)51.78K
Price to Earnings (P/E)26.7
Beta (1Y)0.75
Revenue Growth7.22%
EPS Growth12.99%
CountryIN
Employees148,731
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)50.62
Shares Outstanding979,954,160
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
₹1,487.50Price Target Upside-7.78% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)77.35
Revenue Forecast (FY)₹620.28B
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 | 540.56B | 568.15B | 529.88B | 519.96B | 532.90B | 446.46B |
| Gross Profit | 177.80B | 202.37B | 167.32B | 154.37B | 169.77B | 133.11B |
| EBITDA | 77.55B | 90.64B | 63.34B | 44.75B | 75.06B | 91.35B |
| Net Income | 44.85B | 48.11B | 42.52B | 23.58B | 48.31B | 55.66B |
Balance Sheet | ||||||
| Total Assets | 458.28B | 493.69B | 444.94B | 434.24B | 461.53B | 448.71B |
| Cash, Cash Equivalents and Short-Term Investments | 72.79B | 88.89B | 74.35B | 75.15B | 70.38B | 84.10B |
| Total Debt | 19.54B | 21.86B | 20.25B | 25.37B | 27.40B | 26.18B |
| Total Liabilities | 178.75B | 192.92B | 167.03B | 162.77B | 177.59B | 174.90B |
| Stockholders Equity | 275.04B | 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
Negative
1613.05
Price Trends
1453.33
Negative
1477.46
Negative
1488.96
Negative
Market Momentum
2.31
Positive
47.93
Neutral
8.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TECHM, the sentiment is Negative. The current price of 1613.05 is above the 20-day moving average (MA) of 1468.43, above the 50-day MA of 1453.33, and above the 200-day MA of 1488.96, indicating a bearish trend. The MACD of 2.31 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 8.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TECHM.
Tech Mahindra Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹7.82T | 16.17 | ― | 3.55% | 4.58% | 1.35% | |
70 Outperform | ₹3.04T | 18.73 | ― | 2.86% | 11.18% | -4.28% | |
69 Neutral | ₹4.61T | 14.59 | ― | 2.70% | 9.61% | 11.08% | |
67 Neutral | ₹1.16T | 23.67 | ― | 1.08% | 11.31% | 9.00% | |
65 Neutral | ₹1.40T | 26.66 | ― | 2.76% | 7.22% | 12.99% | |
65 Neutral | ₹1.90T | 14.50 | ― | 4.05% | 3.97% | 0.34% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Tech Mahindra Limited Corporate Events
Tech Mahindra Allots 112,907 Shares on Employee Stock Option Exercise
May 1, 2026
Tech Mahindra has approved the allotment of 112,907 fully paid equity shares with a face value of ₹5 each, following the exercise of employee stock options under its 2014 and 2018 ESOP schemes. The new shares, which rank pari passu with exis...
Tech Mahindra Posts Q4 FY26 Earnings Call Recording, Reaffirms Disclosure Transparency
Apr 22, 2026
Tech Mahindra has informed the stock exchanges that it concluded its quarterly earnings meeting with analysts, institutional investors, and funds on 22 April 2026, covering the audited financial results for the fourth quarter and full year ended 3...
Tech Mahindra Sets April 22 Analyst Day and Q4 FY26 Earnings Meet in Pune
Apr 2, 2026
Tech Mahindra has scheduled its Analyst Day 2026 and quarterly earnings meeting for the fourth quarter and full year ended 31 March 2026 on 22 April 2026 at its Hinjewadi, Pune campus. The in-person group meeting will brief analysts, investors and...
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.