Tech Mahindra Limited (IN:TECHM)
:TECHM
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Tech Mahindra Limited
(TECHM)
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Rating:55Neutral
Price Target:
₹1,685.00
▲(4.46% Upside)
Action:ReiteratedDate:09/23/25
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
Strong balance sheet
A robust balance sheet with a strong equity base and low leverage provides durable financial flexibility. It supports continued investment in service delivery, cushions against operational volatility, and preserves capacity for strategic actions like acquisitions or restructuring over the next several months.
Negative Factors
Negative EBIT margin
Negative EBIT reflects persistent operational inefficiencies or cost-versus-revenue mismatch. If unaddressed, it erodes operating leverage, limits reinvestment capacity, and may force cost restructuring that disrupts delivery and client programs over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
A robust balance sheet with a strong equity base and low leverage provides durable financial flexibility. It supports continued investment in service delivery, cushions against operational volatility, and preserves capacity for strategic actions like acquisitions or restructuring over the next several months.
Read all positive factors
Tech Mahindra Limited (TECHM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.41T
Dividend Yield2.76%
Average Volume (3M)51.78K
Price to Earnings (P/E)31.4
Beta (1Y)0.83
Revenue Growth3.30%
EPS Growth36.78%
CountryIN
Employees148,731
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)12.64
Shares Outstanding979,841,250
10 Day Avg. Volume74,125
30 Day Avg. Volume51,777
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)4.52
Price to Sales (P/S)2.33
P/FCF Ratio23.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,754.60Price Target Upside8.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)76.45
Revenue Forecast (FY)₹614.13B
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 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 trans...
Tech Mahindra Limited Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 540.56B | 529.88B | 519.96B | 532.90B | 446.46B | 378.55B |
| Gross Profit | 177.80B | 167.32B | 154.37B | 169.77B | 133.11B | 119.44B |
| EBITDA | 77.55B | 63.34B | 44.75B | 75.06B | 91.35B | 75.57B |
| Net Income | 44.85B | 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
Neutral
1613.05
Price Trends
1473.07
Negative
1523.09
Negative
1508.29
Negative
Market Momentum
5.54
Negative
53.20
Neutral
67.80
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 1613.05 is above the 20-day moving average (MA) of 1396.64, above the 50-day MA of 1473.07, and above the 200-day MA of 1508.29, indicating a neutral trend. The MACD of 5.54 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.80 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹443.75B | 30.05 | ― | 1.94% | 8.73% | 11.33% | |
69 Neutral | ₹855.86B | 55.70 | ― | 0.55% | 23.27% | 33.09% | |
68 Neutral | ₹2.15T | 22.11 | ― | 4.05% | 1.10% | 14.83% | |
63 Neutral | ₹411.05B | 55.81 | ― | 0.88% | 41.97% | 38.73% | |
62 Neutral | ₹1.34T | 46.27 | ― | 1.08% | 8.72% | 4.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ₹1.41T | 31.42 | ― | 2.76% | 3.30% | 36.78% |
* Technology Sector Average
IN:TECHM
Tech Mahindra Limited
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15.50%
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Tech Mahindra Limited Corporate Events
Tech Mahindra Posts Q3 FY26 Earnings Call Audio, Confirms Compliance with SEBI Norms
Jan 16, 2026
Tech Mahindra has informed the stock exchanges that it has concluded its quarterly earnings conference call with analysts, institutional investors, and funds to discuss the audited financial results for the third quarter and nine months ended 31 D...
Tech Mahindra Expands African Footprint with New Uganda Subsidiary
Dec 22, 2025
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 Comviv...
Tech Mahindra Secures Independent ESG Rating of 80 from ESGRisk.ai
Dec 22, 2025
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 ...
Tech Mahindra Expands into Zambia with New Subsidiary
Dec 15, 2025
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...
Tech Mahindra Expands African Presence with New Tanzanian Subsidiary
Dec 10, 2025
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 an...
Tech Mahindra Receives Independent ESG Rating of 77
Dec 9, 2025
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 pub...
Tech Mahindra Liquidates Non-Operational Subsidiary to Streamline Operations
Dec 9, 2025
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 c...
Tech Mahindra Engages Investors at Mahindra Group Investor Day
Nov 20, 2025
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 we...
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.