Tech Mahindra Limited (TECHM) AI Stock Analysis

• Market Cap: ₹1.47T
• Dividend Yield: 3%
• Average Volume (3M): 47.58K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.97
• Revenue Growth: 2.88%
• EPS Growth: 79.99%
• Country: IN
• Employees: 148,731
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 12.86
• Shares Outstanding: 979,271,000
• 10 Day Avg. Volume: 39,027
• 30 Day Avg. Volume: 47,583
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,581.33
• Price Target Upside: 5.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 55 Neutral
• Price Target: ₹1,603.00 ▲(7.22% Upside)

Tech Mahindra's stock score reflects a mix of financial stability and operational challenges. The strong balance sheet and cash flow are offset by operational inefficiencies highlighted in the income statement. Technical indicators suggest bearish momentum, and the valuation appears high, though the dividend yield is a positive aspect.

Tech Mahindra Limited Business Overview & Revenue Model

Company Description

Tech Mahindra Limited (TECHM) is a leading global provider of information technology (IT) services and solutions. As part of the larger Mahindra Group, the company delivers innovative and customer-centric IT experiences across various industries. Tech Mahindra offers a range of services including digital transformation, consulting, business re-engineering, and IT infrastructure management. It serves numerous sectors such as telecommunications, healthcare, financial services, and manufacturing, helping businesses leverage technology to drive growth and efficiency.

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 exhibits financial stability with a strong balance sheet and consistent cash flow, but faces operational challenges as evidenced by a declining EBIT margin. The income statement reflects these challenges, though the balance sheet and cash flow remain solid.

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	529.88B	529.88B	519.96B	532.90B	446.46B	378.55B
Gross Profit	175.27B	175.27B	131.30B	255.98B	205.35B	169.19B
EBITDA	76.76B	78.19B	54.34B	87.52B	91.23B	75.70B
Net Income	42.52B	42.52B	23.58B	48.31B	55.66B	44.28B
Balance Sheet
Total Assets	444.94B	444.94B	434.24B	461.53B	448.71B	396.78B
Cash, Cash Equivalents and Short-Term Investments	78.47B	78.47B	73.58B	75.38B	82.90B	124.16B
Total Debt	20.25B	20.25B	25.37B	27.40B	26.18B	29.01B
Total Liabilities	167.03B	167.03B	162.77B	177.59B	174.90B	144.34B
Stockholders Equity	273.62B	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: Negative
• Last Price: 1495.10
• 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 Negative. The current price of 1495.1 is above the 20-day moving average (MA) of 1488.85, below the 50-day MA of 1555.07, and below the 200-day MA of 1566.57, indicating a neutral trend. The MACD of -7.26 indicates Negative momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 58.00 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WIPRO	74 Outperform	₹2.64T	19.59		4.39%	0.41%	20.30%
LTIM	74 Outperform	₹1.53T	32.38		2.15%	7.64%	3.35%
MPHASIS	73 Outperform	₹546.94B	31.35		2.01%	8.11%	10.73%
PERSISTENT	72 Outperform	₹840.94B	54.83		0.65%	22.44%	26.98%
COFORGE	66 Neutral	₹581.57B	58.32		0.89%	44.02%	18.89%
Sector *	61 Neutral	$36.05B	6.66	-10.61%	1.86%	8.68%	-8.81%
TECHM	55 Neutral	₹1.47T	29.27		3.00%	2.88%	79.99%

Tech Mahindra Limited Corporate Events

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.