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Tech Mahindra Limited
(TECHM)
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Rating:70Outperform
Price Target:
₹1,815.00
▲(16.32% Upside)
Action:Upgraded
Date:08/06/26
Overall score is driven primarily by solid financial stability (low leverage) and consistently positive cash generation, offset by uneven profitability. Technicals are constructive with the stock above key moving averages, but momentum indicators are nearing overbought levels. Valuation is the main headwind due to a higher P/E, partially supported by the ~3.1% dividend yield.
Positive Factors
Low leverage / strong balance sheet
A very low debt-to-equity ratio and growing assets/equity provide durable financial flexibility. This reduces refinancing risk, supports investment in delivery capacity or M&A, and cushions cyclicality in client spending—strengths that remain meaningful over a multi-month horizon.
Negative Factors
Profitability volatility
Material swings in net income and returns indicate inconsistent margin capture and earnings quality. This undermines forecasting, complicates capital allocation decisions, and may pressure dividends or reinvestment if weaker periods persist, a durable governance and execution concern.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
A very low debt-to-equity ratio and growing assets/equity provide durable financial flexibility. This reduces refinancing risk, supports investment in delivery capacity or M&A, and cushions cyclicality in client spending—strengths that remain meaningful over a multi-month horizon.
Read all positive factors
Tech Mahindra Limited (TECHM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.62T
Dividend Yield3.09%
Average Volume (3M)51.78K
Price to Earnings (P/E)28.5
Beta (1Y)0.75
Revenue Growth10.95%
EPS Growth12.97%
CountryIN
Employees146,760
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)57.94
Shares Outstanding980,084,800
10 Day Avg. Volume74,125
30 Day Avg. Volume51,777
Financial Highlights & Ratios
PEG Ratio1.95
Price to Book (P/B)4.14
Price to Sales (P/S)2.16
P/FCF Ratio22.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,669.33Price Target Upside6.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)76.94
Revenue Forecast (FY)₹634.19B
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...
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 ...
Tech Mahindra Limited Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 592.16B | 568.15B | 529.88B | 519.96B | 532.90B | 446.46B |
| Gross Profit | 213.06B | 202.37B | 167.32B | 154.37B | 169.77B | 133.11B |
| EBITDA | 92.67B | 90.64B | 63.34B | 44.75B | 75.06B | 91.35B |
| Net Income | 51.35B | 48.11B | 42.52B | 23.58B | 48.31B | 55.66B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 493.69B | 444.38B | 434.24B | 461.53B | 448.71B |
| Cash, Cash Equivalents and Short-Term Investments | 83.86B | 84.25B | 73.79B | 73.23B | 69.11B | 82.90B |
| Total Debt | 0.00 | 21.86B | 24.32B | 25.37B | 27.40B | 26.18B |
| Total Liabilities | -300.77B | 192.92B | 167.03B | 162.77B | 177.59B | 174.90B |
| Stockholders Equity | 300.77B | 296.15B | 273.62B | 266.69B | 279.25B | 268.86B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 54.76B | 51.92B | 55.85B | 45.57B | 43.27B |
| Operating Cash Flow | 0.00 | 61.72B | 57.86B | 63.76B | 55.72B | 52.85B |
| Investing Cash Flow | 0.00 | -4.09B | -232.00M | -13.14B | -2.79B | 4.82B |
| Financing Cash Flow | 0.00 | -51.30B | -57.99B | -47.67B | -50.78B | -46.67B |
Tech Mahindra Limited Technical Analysis
Positive
1560.30
Price Trends
1488.86
Positive
1439.14
Positive
1464.98
Positive
Market Momentum
52.71
Negative
67.63
Neutral
65.73
Neutral
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 1560.3 is below the 20-day moving average (MA) of 1589.76, above the 50-day MA of 1488.86, and above the 200-day MA of 1464.98, indicating a bullish trend. The MACD of 52.71 indicates Negative momentum. The RSI at 67.63 is Neutral, neither overbought nor oversold. The STOCH value of 65.73 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ₹3.65T | 20.83 | ― | 4.72% | 12.59% | 2.65% | |
76 Outperform | ₹8.56T | 17.19 | ― | 4.92% | 7.70% | 1.07% | |
75 Outperform | ₹1.29T | 26.78 | ― | 2.80% | 13.87% | 10.72% | |
74 Outperform | ₹4.59T | 14.45 | ― | 4.61% | 5.76% | 12.64% | |
70 Outperform | ₹1.62T | 28.50 | ― | 3.27% | 10.95% | 12.97% | |
67 Neutral | ₹1.82T | 14.54 | ― | 6.21% | 6.40% | -1.86% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:TECHM
Tech Mahindra Limited
1,649.90
222.53
15.59%
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-19.14%
Tech Mahindra Limited Corporate Events
Tech Mahindra Schedules Investor Meetings at Mumbai Conferences
Aug 6, 2026
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 design...
Tech Mahindra Schedules Investor Meetings at Mumbai Conferences in August 2026
Aug 6, 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....
Tech Mahindra to acquire Brazilian IT firm Alyis to bolster Orange partnership in LATAM
Jul 1, 2026
Tech Mahindra’s Brazilian subsidiary has signed a Quota Purchase Agreement with Orange Business Services Brasil to acquire Alyis Serviços Técnicos LTDA, an IT services provider to telecom companies in Brazil with around 270 employe...
Tech Mahindra Schedules Q1 FY27 Earnings Call for Analysts and Investors
Jun 30, 2026
Tech Mahindra has notified the stock exchanges that it will hold a quarterly earnings conference call for the first quarter of FY27, following the approval of its audited standalone and consolidated financial results for the period ended 30 June 2...
Tech Mahindra Sets July 17, 2026 Virtual AGM, Releases FY26 Integrated Report
Jun 23, 2026
Tech Mahindra has announced that its 39th Annual General Meeting will be held on July 17, 2026, at 3:30 p.m. IST via video conferencing or other audio-visual means, in line with regulatory guidance from Indian authorities. The company has released...
Tech Mahindra Files Assured Sustainability Report for FY 2025-26
Jun 23, 2026
Tech Mahindra Limited has released its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, complying with SEBI’s Listing Regulations on sustainability and responsible business disclosures. The report is p...
Tech Mahindra Sets July 17 Virtual AGM, Urges Action on Unclaimed Dividends
Jun 23, 2026
Tech Mahindra has notified exchanges and shareholders that its 39th Annual General Meeting will be held on July 17, 2026, via video conferencing or other audio-visual means in line with Indian corporate and securities regulations. The company has ...
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.