Tech Mahindra Limited (TECHM) AI Stock Analysis

• Market Cap: ₹1.43T
• Dividend Yield: 3.07%
• Average Volume (3M): 52.85K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 1.04
• Revenue Growth: 2.88%
• EPS Growth: 79.99%
• Country: IN
• Employees: 148,731
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 12.86
• Shares Outstanding: 979,562,300
• 10 Day Avg. Volume: 57,142
• 30 Day Avg. Volume: 52,851
• PEG Ratio: 0.36
• Price to Book (P/B): 4.52
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 23.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,526.91
• Price Target Upside: 4.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 55 Neutral
• Price Target: ₹1,603.00 ▲(9.32% Upside)

Tech Mahindra's overall stock score reflects a combination of financial stability and operational challenges. The strong balance sheet and cash flow are positive, but the negative EBIT margin and high P/E ratio are concerning. Technical indicators suggest potential short-term weakness, and the lack of earnings call data limits insights into future guidance.

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 outsourcing, consulting, application outsourcing, network, infrastructure outsourcing, integrated engineering, BPO, and platform services. The company also provides consulting-led integrated portfolio services to telecom equipment manufacturers and service providers, IT infrastructure service providers, and business process outsourcing service providers; and IT and IT-enabled enterprise solutions. In addition, it offers IT enabled, application development and maintenance, consulting and enterprise business solutions, extended engineering solutions, and infrastructure management services. Further, the company provides data and analytics; IT infrastructure and cloud services; customer experience solutions; enterprise platforms; and enterprise business solutions. Additionally, it offers testing, telecom product engineering, digital supply chain, performance engineering, artificial intelligence, and cyber security services. The company serves communication; banking, financial, and insurance services; energy and utilities; media and entertainment; health life sciences; hi-tech; professional services; manufacturing; retail and consumer goods; travel, transportation, hospitality, and logistics; oil and gas; and public and government sectors. Tech Mahindra Limited was incorporated in 1986 and is based in Pune, India.

How the Company Makes Money

Tech Mahindra generates revenue primarily through its diversified portfolio of IT services and solutions. The company's key revenue streams include IT outsourcing, which involves managing and optimizing IT operations for clients, and digital transformation services, which help organizations modernize their processes and infrastructure. Additionally, Tech Mahindra earns from consulting services, where it provides strategic advice to businesses aiming to enhance their technological capabilities. Telecom solutions form a significant part of its earnings, given its strong presence in the telecommunications sector. The company's earnings are further bolstered by strategic partnerships with leading technology firms, enabling it to offer comprehensive solutions and tap into emerging technologies. These partnerships, along with its global delivery model and investments in research and development, play a crucial role in driving Tech Mahindra's financial performance.

Tech Mahindra Limited Financial Statement Overview

Summary

Tech Mahindra demonstrates financial stability with a strong balance sheet and consistent cash flow generation. However, significant operational challenges are evident in the income statement, particularly with a negative EBIT margin, which could impact future profitability.

Income Statement

Tech Mahindra's income statement reveals mixed performance. The gross profit margin remains healthy, yet there is a stark decline in EBIT margin due to negative EBIT in the recent year, indicating operational challenges. The net profit margin has improved, but the revenue growth has stalled, reflecting stability in sales but potential inefficiencies in operations.

Balance Sheet

The balance sheet of Tech Mahindra is robust with a strong equity base and a low debt-to-equity ratio, highlighting financial stability. The equity ratio is favorable, indicating efficient asset management. However, the declining trend in stockholders' equity over the years suggests challenges in retaining capital.

Cash Flow

Cash flow analysis shows a steady free cash flow, albeit with a slight decline in recent growth rate. The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio has slightly weakened, suggesting potential challenges in capital expenditure management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	533.34B	529.88B	519.96B	532.90B	446.46B	378.55B
Gross Profit	171.06B	167.32B	154.37B	169.77B	133.11B	119.44B
EBITDA	78.24B	63.34B	44.75B	75.06B	91.35B	75.57B
Net Income	45.41B	42.52B	23.58B	48.31B	55.66B	44.28B
Balance Sheet
Total Assets	0.00	444.94B	434.24B	461.53B	448.71B	396.78B
Cash, Cash Equivalents and Short-Term Investments	73.79B	74.35B	75.15B	70.38B	84.10B	124.97B
Total Debt	0.00	20.25B	25.37B	27.40B	26.18B	29.01B
Total Liabilities	-277.92B	167.03B	162.77B	177.59B	174.90B	144.34B
Stockholders Equity	277.92B	273.62B	266.69B	279.25B	268.86B	248.65B
Cash Flow
Free Cash Flow	0.00	51.92B	55.85B	45.57B	43.27B	74.28B
Operating Cash Flow	0.00	57.86B	63.76B	55.72B	52.85B	80.94B
Investing Cash Flow	0.00	-232.00M	-13.14B	-2.79B	4.82B	-54.50B
Financing Cash Flow	0.00	-57.99B	-47.67B	-50.78B	-46.67B	-29.87B

Tech Mahindra Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1466.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TECHM, the sentiment is Neutral. The current price of 1466.3 is below the 20-day moving average (MA) of 1472.91, below the 50-day MA of 1483.21, and below the 200-day MA of 1534.31, indicating a bearish trend. The MACD of -18.19 indicates Negative momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:TECHM.

Tech Mahindra Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WIPRO	77 Outperform	₹2.55T	18.93	―	4.47%	0.41%	20.30%
PERSISTENT	72 Outperform	₹824.29B	53.74	―	0.66%	22.44%	26.98%
MPHASIS	71 Outperform	₹535.65B	30.71	―	2.04%	8.11%	10.73%
LTIM	68 Neutral	₹1.56T	33.06	―	2.02%	7.64%	3.35%
COFORGE	66 Neutral	₹563.83B	56.52	―	0.89%	44.02%	18.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.43T	28.41	―	3.07%	2.88%	79.99%

Tech Mahindra Limited Corporate Events

Tech Mahindra Liquidates Subsidiary to Streamline Operations

Tech Mahindra Limited has announced the voluntary liquidation of its wholly-owned subsidiary, Tech Mahindra Technology Services LLC, effective August 29, 2025. The subsidiary had no turnover, income, or net worth as of March 31, 2025, indicating minimal impact on the company’s financials. This strategic move is part of Tech Mahindra’s efforts to streamline operations and focus on core business areas, potentially enhancing operational efficiency and market positioning.

Tech Mahindra Receives Independent ESG Rating

Tech Mahindra Limited has received an ‘ESG rating 74’ from ESGRisk.ai, a SEBI registered ESG Rating Provider. The rating was independently assigned based on the company’s fiscal 2025 disclosures and publicly available data, highlighting Tech Mahindra’s commitment to environmental, social, and governance standards.

Tech Mahindra Allots 26,185 Shares Under Employee Stock Options

Tech Mahindra Limited has announced the allotment of 26,185 equity shares following the exercise of employee stock options under its ESOP-2014 and ESOP-2018 plans. This move reflects the company’s commitment to employee engagement and retention through stock-based incentives, potentially enhancing its operational dynamics and market positioning.