Tech Mahindra Limited AI Stock Analysis
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Tech Mahindra Limited (TECHM) AI Stock Analysis
Tech Mahindra Limited
(NSE:TECHM)
The score is driven primarily by solid underlying financial stability (low leverage and consistently positive cash generation) and a strongly positive earnings call emphasizing margin progress and robust deal momentum. Offsetting factors are stretched technical momentum signals (RSI/Stoch elevated) and a relatively higher P/E that limits valuation support.
Tech Mahindra Limited (TECHM) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 1.76T
- Dividend Yield
- 2.87%
- Average Volume (3M)
- 131.38K
- Price to Earnings (P/E)
- 28.7
- Beta (1Y)
- 0.83
- Revenue Growth
- 13.60%
- EPS Growth
- 23.11%
- Country
- India
- Employees
- 152,206
- Sector
- General
- Sector Strength
- 55
- Industry
- Information Technology Services
Tech Mahindra Limited Business Overview & Revenue Model
Company Description
Established in 1986 and based in Pune, India, Tech Mahindra Limited operates as a global provider of information technology (IT) services and business solutions. Its reach extends across the Americas, Europe, India, and other international markets. T...
How the Company Makes Money
Tech Mahindra primarily makes money by delivering IT and digital services to enterprise clients under contract. Revenue is generated through (1) time-and-materials engagements where clients pay based on billed effort (e.g., hourly/daily rates for con...
Tech Mahindra Limited Earnings Call Summary
The call was strongly positive. Highlights significantly outweighed the lowlights, with broad-based revenue growth, 12 consecutive quarters of margin expansion, $1.023 billion of quarterly deal wins, strong large-account momentum, expanding AI deployments, and progress toward the 15% full-year EBIT margin target. The main challenges were sequential manufacturing weakness tied to a European automotive program, slower BFSI growth, European auto weakness, some pressure from AI-driven productivity and pricing dynamics, and near-term cash-flow and tax impacts.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management reiterated its full year FY 2027 EBIT margin target of 15% and its stance to maintain 90%-100% free cash flow to PAT on a full year basis. It expects normal seasonality, with no unreasonable seasonality or unreasonable furloughs in Q3 or Q4, while a sequential revenue headwind from the European auto program is expected in Q3 “as well, though to a much smaller extent.” For BFSI, management said it “fully expect[s] to get back to” the “upwards of 8%” growth levels of the prior two quarters “in the next quarter.” AI revenue reporting is expected as part of H2 FY 2027 disclosures, and completion of the 20-qubit quantum-computing middleware is expected by December 2026, with commercialization activities expected thereafter.
Tech Mahindra Limited Financial Statement Overview
Summary
Financials show stability with some earnings-quality risk: modest FY2026 revenue growth (+5.1%) and consistently positive operating/free cash flow support resilience, while low leverage and growing assets/equity strengthen flexibility. The key offset is uneven profitability and return metrics, with notable net income volatility across recent years.
Income Statement
63PositiveBalance Sheet
78PositiveCash Flow
74Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 613.61B | 568.15B | 529.88B | 519.96B | 532.90B | 446.46B |
| Gross Profit | 219.53B | 202.37B | 167.32B | 154.37B | 169.77B | 133.11B |
| EBITDA | 99.42B | 90.64B | 70.17B | 49.97B | 80.59B | 91.35B |
| Net Income | 55.27B | 48.11B | 42.52B | 23.58B | 48.31B | 55.66B |
Balance Sheet | ||||||
| Total Assets | 488.03B | 493.69B | 444.38B | 434.24B | 461.53B | 448.71B |
| Cash, Cash Equivalents and Short-Term Investments | 73.21B | 84.25B | 73.79B | 73.23B | 69.11B | 82.90B |
| Total Debt | 21.84B | 21.86B | 24.32B | 25.37B | 27.40B | 26.18B |
| Total Liabilities | 186.81B | 192.92B | 167.03B | 162.77B | 177.59B | 174.90B |
| Stockholders Equity | 296.73B | 296.15B | 273.62B | 266.69B | 279.25B | 268.86B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 54.76B | 51.92B | 55.85B | 45.57B | 43.27B |
| Operating Cash Flow | 0 | 61.72B | 57.86B | 63.76B | 55.72B | 52.85B |
| Investing Cash Flow | 0 | -4.09B | -232.00M | -13.14B | -2.79B | 4.82B |
| Financing Cash Flow | 0 | -51.30B | -57.99B | -47.67B | -50.78B | -46.67B |
Tech Mahindra Limited Technical Analysis
Price Trends
Market Momentum
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 1776.80 is above the 20-day moving average (MA) of 1760.41, above the 50-day MA of 1626.85, and above the 200-day MA of 1500.20, indicating a bullish trend. The MACD of 56.11 indicates Positive momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 47.77 is Neutral, 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
Overall Rating
IN:HCLTECH82.15Outperform
IN:TCS80Outperform
IN:INFY77Outperform
IN:WIPRO75Outperform
IN:LTIM73Outperform- IN:TECHM73Outperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:HCLTECH | 82Outperform | INR 3.82T | 20.61 | ― | 4.30% | 12.76% | 7.96% |
| IN:TCS | 80Outperform | INR 8.94T | 17.33 | ― | 4.53% | 9.92% | 4.39% |
| IN:INFY | 77Outperform | INR 4.68T | 15.31 | ― | 4.42% | 6.35% | 11.51% |
| IN:WIPRO | 75Outperform | INR 1.97T | 15.53 | ― | 4.04% | 8.22% | -1.14% |
| IN:LTIM | 73Outperform | INR 1.27T | 26.78 | ― | 2.54% | 14.67% | 7.26% |
| IN:TECHM | 73Outperform | INR 1.76T | 28.68 | ― | 2.87% | 13.60% | 23.11% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:TECHM | Tech Mahindra Limited | 1776.80 | 374.38 | 26.69% | |
| IN:HCLTECH | HCL Technologies Limited | 1393.60 | -134.29 | -8.79% | |
| IN:INFY | Infosys Limited | 1153.00 | -322.93 | -21.88% | |
| IN:LTIM | LTIMindtree Limited | 4222.00 | -1512.14 | -26.37% | |
| IN:TCS | Tata Consultancy Services Limited | 2469.10 | -508.09 | -17.07% | |
| IN:WIPRO | Wipro Limited | 197.85 | -38.62 | -16.33% |
Tech Mahindra Limited Corporate Events
Tech Mahindra Publishes Notice on Loss of Share Certificates in Line with SEBI Rules
Tech Mahindra Limited has notified the stock exchanges that it has published a newspaper advertisement in the Financial Express concerning the loss of share certificates, in line with disclosure requirements under SEBI’s Listing Regulations and a rel...
Tech Mahindra Winds Up Polish Step-Down Subsidiary in Structural Cleanup
Tech Mahindra Limited has voluntarily liquidated LCC Networks Poland Sp.z.o.o, a step-down wholly owned subsidiary under LCC Europe BV, effective 9 October 2026, as part of its broader strategic initiative to integrate and rationalise subsidiaries. T...
Tech Mahindra Expands Equity Base Through ESOP Share Allotment
Tech Mahindra has allotted 25,329 fully paid equity shares with a face value of ₹5 each following the exercise of employee stock options under its ESOP 2014 and ESOP 2018 schemes. The new shares, which rank pari passu with existing equity, increase t...
Tech Mahindra Schedules Investor Meetings at Mumbai Conferences
Tech Mahindra has notified stock exchanges that its leadership team will participate in upcoming analyst and institutional investor interactions as part of major industry conferences in Mumbai. The company emphasized that these sessions are designed...
Tech Mahindra Schedules Investor Meetings at Mumbai Conferences in August 2026
Tech Mahindra has announced a schedule of upcoming analyst and institutional investor interactions, detailing its participation in the Emkay Confluence 2026 and the Equirus Annual India Conference in Mumbai on August 12 and 13, 2026, respectively. Th...
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.
Date of analysis: Oct 17, 2026