Tech Mahindra Limited (TECHM) AI Stock Analysis

• Market Cap: ₹1.55T
• Dividend Yield: 2.76%
• Average Volume (3M): 51.78K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.02
• Revenue Growth: 3.30%
• EPS Growth: 36.78%
• Country: IN
• Employees: 148,731
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 13.46
• Shares Outstanding: 979,721,300
• 10 Day Avg. Volume: 74,125
• 30 Day Avg. Volume: 51,777
• 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: ₹1,581.00
• Price Target Upside: -0.01% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹1,666.00 ▲(5.36% 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.

Positive Factors

Balance sheet strength

A robust balance sheet with low leverage provides durable financial flexibility. It supports funding of multi-year client contracts, strategic investments in digital services, and cushioning through downturns, reducing refinancing risk and preserving capacity to pursue growth.

Cash generation

Consistent free cash flow and favorable operating cash flow to net income indicate sustainable cash generation. This underpins capital expenditures, investments in capabilities, dividends or buybacks, and provides resilience while management addresses operating margin pressures.

Diversified services and partnerships

A diversified revenue mix across IT services, BPO and strong OEM partnerships reduces client and tech concentration risk. These alliances and multi-industry exposure support recurring contract wins and position the firm to capture structural demand for digital transformation.

Negative Factors

Negative operating profitability

A negative EBIT margin signals persistent operating inefficiencies or one-off charges that impair the company's ability to convert revenue into operating profit. Sustained negative operating profit can limit reinvestment, weaken competitive positioning, and require structural cost or pricing fixes.

Stalled revenue growth

Low single-digit revenue growth constrains scalability and operating leverage in a competitive IT services market. Without stronger top-line expansion, margin recovery and EPS improvement depend more on cost cuts than business-led growth, limiting long-term competitiveness.

Erosion in equity base

A declining stockholders' equity trend implies capital retention issues or recurring losses that erode the balance sheet buffer. Over time this can constrain M&A, investments, or capital returns, and reduce the company's ability to absorb shocks or fund strategic initiatives.

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	1.36T	529.88B	519.96B	532.90B	446.46B	378.55B
Gross Profit	454.84B	167.32B	154.37B	169.77B	133.11B	119.44B
EBITDA	199.15B	63.34B	44.75B	75.06B	91.35B	75.57B
Net Income	113.59B	42.52B	23.58B	48.31B	55.66B	44.28B
Balance Sheet
Total Assets	458.28B	444.94B	434.24B	461.53B	448.71B	396.78B
Cash, Cash Equivalents and Short-Term Investments	72.79B	74.35B	75.15B	70.38B	84.10B	124.97B
Total Debt	19.54B	20.25B	25.37B	27.40B	26.18B	29.01B
Total Liabilities	178.75B	167.03B	162.77B	177.59B	174.90B	144.34B
Stockholders Equity	275.04B	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: 1581.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1581.2 is below the 20-day moving average (MA) of 1602.32, above the 50-day MA of 1526.95, and above the 200-day MA of 1494.84, indicating a neutral trend. The MACD of 18.47 indicates Positive momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 43.34 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
LTIM	78 Outperform	₹1.79T	36.79	―	1.08%	8.72%	4.54%
COFORGE	73 Outperform	₹563.27B	48.06	―	0.88%	41.97%	38.73%
MPHASIS	73 Outperform	₹541.05B	30.22	―	1.94%	8.73%	11.33%
PERSISTENT	73 Outperform	₹1.01T	59.76	―	0.55%	23.27%	33.09%
WIPRO	71 Outperform	₹2.74T	20.30	―	4.05%	1.10%	14.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.55T	31.20	―	2.76%	3.30%	36.78%

Tech Mahindra Limited Corporate Events

Tech Mahindra Expands African Footprint with New Uganda Subsidiary

Tech Mahindra has announced the incorporation of Yabx Technologies Uganda Limited as a step-down subsidiary in the Republic of Uganda, through its wholly owned subsidiary Yabx Technologies (Netherlands) B.V., which is itself a subsidiary of Comviva Technologies Limited. Yabx Uganda, with initial share capital of UGX 1.7 million, has been set up to provide software and analytics platform services to clients in Uganda, aligning with Tech Mahindra’s core IT and digital services business and expanding its footprint in the African market, which may enhance its regional service capabilities and support growth in emerging digital economies.

Tech Mahindra Secures Independent ESG Rating of 80 from ESGRisk.ai

Tech Mahindra Limited has received an independently assigned ESG rating of 80 from ESGRisk.ai, a SEBI-registered Category I Subscriber-Pays ESG Rating Provider. The rating was issued voluntarily by ESGRisk.ai based on Tech Mahindra’s fiscal 2025 disclosures and other publicly available information, without any engagement or payment from the company, underscoring the company’s transparency on sustainability metrics and potentially strengthening its credentials with investors and other stakeholders focused on environmental, social, and governance performance.

Tech Mahindra Expands into Zambia with New Subsidiary

Tech Mahindra Limited has announced the incorporation of Yabx Technologies Zambia Limited, a step-down subsidiary under Yabx Technologies (Netherlands) B.V., which is a wholly owned subsidiary of Comviva Technologies Limited. This new entity, Yabx Zambia, aims to provide computer programming services in Zambia, aligning with Tech Mahindra’s core business operations. The incorporation signifies Tech Mahindra’s strategic expansion into the Zambian market, potentially enhancing its footprint in the African IT services sector and offering new growth opportunities.

Tech Mahindra Expands African Presence with New Tanzanian Subsidiary

Tech Mahindra Limited has announced the incorporation of a new step-down subsidiary, Yabx Technologies Tanzania Limited, in the United Republic of Tanzania. This subsidiary, under Yabx Technologies (Netherlands) B.V., aims to offer software and analytics platform services in Tanzania, aligning with Tech Mahindra’s core business operations. This strategic move is expected to enhance the company’s presence in the African market, potentially opening new avenues for growth and strengthening its industry positioning.

Tech Mahindra Receives Independent ESG Rating of 77

Tech Mahindra Limited has received an ESG rating of 77 from NSE Sustainability Ratings and Analytics Ltd., a subsidiary of NSE Indices Limited. This rating was independently assigned based on the company’s disclosures for fiscal 2025 and publicly available data, without any engagement from Tech Mahindra. The announcement highlights Tech Mahindra’s commitment to sustainability and may influence its market perception positively.

Tech Mahindra Liquidates Non-Operational Subsidiary to Streamline Operations

Tech Mahindra Limited has announced the voluntary liquidation of its wholly-owned subsidiary, Tech Mahindra Holdco (Pty) Ltd, effective December 9, 2025. The subsidiary was non-operational and did not contribute materially to the company’s consolidated financials. This move is part of Tech Mahindra’s strategic decisions to streamline its operations and focus on more impactful business units, potentially enhancing its market positioning and operational efficiency.

Tech Mahindra Engages Investors at Mahindra Group Investor Day

Tech Mahindra Limited has announced that it will present at the Mahindra Group Investor Day in Mumbai, as part of its ongoing engagement with analysts and institutional investors. The presentation, which will be available on the company’s website, aims to provide insights into the company’s strategies and operations, reinforcing its commitment to transparency and stakeholder engagement.

Tech Mahindra Concludes Q2 Earnings Call, Shares Insights Online

Tech Mahindra Limited recently held a quarterly earnings conference call to discuss its audited financial results for the second quarter and half-year ending September 30, 2025. The call, which included analysts and institutional investors, did not disclose any unpublished price-sensitive information. The company has made the audio recording and investor presentation available on its website, ensuring transparency and accessibility for stakeholders.

Tech Mahindra Releases Quarterly Earnings Presentation

Tech Mahindra Limited announced the release of its Quarterly Earnings Presentation, which will be discussed in a conference call scheduled for October 14, 2025. This presentation is part of the company’s ongoing efforts to maintain transparency with its investors and stakeholders, reflecting its commitment to regulatory compliance and investor engagement.

Tech Mahindra Submits SEBI Compliance Certificate for Q3 2025

Tech Mahindra Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This announcement confirms that securities received for dematerialization during this period were processed and listed appropriately, ensuring compliance with regulatory requirements and maintaining transparency for stakeholders.