Tech Mahindra Limited (IN:TECHM)
:TECHM
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Tech Mahindra Limited
(TECHM)
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Rating:65Neutral
Price Target:
₹1,573.00
▼(-2.48% Downside)
Action:ReiteratedDate: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
Balance sheet strength
Very low leverage and growing equity/assets provide durable financial flexibility. This reduces refinancing and solvency risk, supports investment in growth initiatives or cyclicality, and enables opportunistic M&A or shareholder returns without stressing liquidity over the next several quarters.
Negative Factors
Profitability volatility
Meaningful swings in net income reflect margin and execution variability that can undermine predictability of earnings and return metrics. Persistent volatility complicates long-term planning, investor confidence, and could necessitate conservative capital allocation despite healthy cash flows.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and growing equity/assets provide durable financial flexibility. This reduces refinancing and solvency risk, supports investment in growth initiatives or cyclicality, and enables opportunistic M&A or shareholder returns without stressing liquidity over the next several quarters.
Read all positive factors
Tech Mahindra Limited (TECHM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.44T
Dividend Yield2.76%
Average Volume (3M)51.78K
Price to Earnings (P/E)25.5
Beta (1Y)0.88
Revenue Growth7.22%
EPS Growth12.99%
CountryIN
Employees148,731
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)50.62
Shares Outstanding979,841,250
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)77.14
Revenue Forecast (FY)₹618.35B
Tech Mahindra Limited Business Overview & Revenue Model
Company Description
Tech Mahindra Limited provides information technology (IT) services and solutions in the Americas, Europe, India, and internationally. The company operates through IT Business and Business Processing Outsourcing (BPO) segments. It offers IT outsou...
How the Company Makes Money
Tech Mahindra primarily makes money by delivering IT and digital services to enterprise clients under commercial contracts that typically include: (1) time-and-materials (billing for consultant/engineer hours and related expenses), (2) fixed-price...
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
Positive
1613.05
Price Trends
1451.14
Positive
1524.68
Negative
1505.16
Positive
Market Momentum
17.42
Negative
63.96
Neutral
89.48
Negative
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 1613.05 is above the 20-day moving average (MA) of 1425.04, above the 50-day MA of 1451.14, and above the 200-day MA of 1505.16, indicating a bullish trend. The MACD of 17.42 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 89.48 is Negative, 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹757.35B | 42.35 | ― | 0.55% | 23.53% | 31.95% | |
68 Neutral | ₹2.10T | 14.90 | ― | 4.05% | 3.97% | 0.34% | |
67 Neutral | ₹1.27T | 23.70 | ― | 1.08% | 11.31% | 9.00% | |
65 Neutral | ₹1.44T | 25.50 | ― | 2.76% | 7.22% | 12.99% | |
63 Neutral | ₹401.66B | 55.81 | ― | 0.88% | 37.10% | 50.35% | |
63 Neutral | ₹434.64B | 20.99 | ― | 1.94% | 11.59% | 8.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IN:TECHM
Tech Mahindra Limited
1,474.05
21.32
1.47%
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Tech Mahindra Limited Corporate Events
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.