Tech Mahindra Ltd logo

Tech Mahindra Ltd

TECHM NSE

Tech Mahindra Ltd provides comprehensive range of IT services, including IT enabled service, application development and maintenance, consulting and enterprise business solutions, etc. to a diversified base of corporate customers in a wide range of industries.[1]

AI Verdict: HOLD Confidence: 5%

Tech Mahindra trades at a PE of 29.5x with modest 3-year sales CAGR of just 2%, though TTM profit growth of 27% signals a turnaround. The stock's 62.5% buy rating from analysts and strong dividend yield of 3.52% provide support, but poor historical sales growth and a 1-year stock return of -17% warrant caution.

Key Fundamentals

LargecapComputer Software & ConsultingInformation Technology
Market Cap
1.4L Cr
Volatility
Moderate
P/E Ratio
29.26
EBITDA
₹8,760 Cr
Return on Equity
8.83%
Debt to Equity
0.08
Book Value
₹302.66
EPS
₹25.74
52W High
₹1,854
52W Low
₹1,304.1

Technical Indicators

Key Insights

Strengths

4
  • Company is almost debt free.
  • Stock is providing a good dividend yield of 3.49%.
  • Company has been maintaining a healthy dividend payout of 112%
  • Debtor days have improved from 69.3 to 48.4 days.

Weaknesses

2
  • The company has delivered a poor sales growth of 8.46% over past five years.
  • Company has a low return on equity of 13.7% over last 3 years.

Growth Rate

Revenue Growth
5.52% ↗
Net Income Growth
7.47% ↘
Cash Flow Change
-9.26% ↘
ROE
73.27% ↗
ROCE
59.97% ↗
EBITDA Margin (Avg.)
6.13% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Tech Mahindra trades at a PE of 29.5x with modest 3-year sales CAGR of just 2%, though TTM profit growth of 27% signals a turnaround. The stock's 62.5% buy rating from analysts and strong dividend yield of 3.52% provide support, but poor historical sales growth and a 1-year stock return of -17% warrant caution.

Bull Case 8
  • Company is virtually debt-free, providing strong balance sheet flexibility and low financial risk
  • Attractive dividend yield of 3.52% with a generous payout ratio of 112%, rewarding shareholders consistently
  • TTM profit growth of 27% indicates a meaningful earnings recovery and operational turnaround underway
  • 62.5% of analysts (25 out of 40) have a buy rating, reflecting institutional confidence in the turnaround thesis
  • Debtor days improved from 69.3 to 48.4 days, signalling better working capital management and cash conversion
  • 10-year stock CAGR of 10% and 10-year sales CAGR of 8% demonstrate long-term compounding ability
  • Last year ROE at 18% shows improvement from the 3-year average of 14%, indicating margin expansion
  • Market cap of Rs 1,35,200 crore provides large-cap stability and liquidity for institutional investors
Bear Case 8
  • 5-year compounded sales growth of only 8% and 3-year sales CAGR of just 2% reflect structural revenue challenges
  • 1-year stock return of -17% indicates significant recent underperformance and possible loss of market confidence
  • 3-year ROE average of only 14% and reported low ROE of 13.7% over 3 years is subpar for a capital-light IT company
  • PE of 29.5x is elevated relative to the weak 3-year profit CAGR of just 1%, implying expensive valuation
  • 5-year compounded profit growth of only 2% suggests the recent TTM spike may not be sustainable
  • 20% of analysts (8 out of 40) recommend selling, a notable bearish minority for a large-cap IT name
  • Price-to-book ratio of 4.78x is high given the modest return ratios, limiting valuation re-rating potential
  • 5-year stock CAGR of only 6% has significantly lagged IT sector peers like TCS and Infosys

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 2d ago
Headwinds 3
  • Fifth straight session decline Jun 15

    Stock fell for fifth consecutive session to ₹1,429.1, underperforming NIFTY (up 1.17%) and Nifty IT (up 1.25%) on the same day.

  • Sharp 15.63% YoY underperformance Jun 15

    Tech Mahindra tumbled 15.63% over the past year vs NIFTY's 4.2% decline, with trading volume at 12.91 lakh shares versus 27.24 lakh daily average, indicating fading investor interest.

  • IT sector structural weakness Jun 15

    Nifty IT index down 27.97% YoY and 22.37% YoY as of May 26, reflecting persistent sector-wide headwinds affecting Tech Mahindra's operating environment.

Positives 3
  • ₹36 final dividend declared May 26

    Tech Mahindra announced ₹36 per share final dividend for FY2025-26 with record date July 3, 2026, subject to shareholder approval.

  • Three-session rally with momentum May 26

    Stock rose 1.01% to ₹1,450 for third straight session on May 26, gaining 3.86% over the prior month with positive futures sentiment at ₹1,449.1 (up 1.19%).

  • Sustained institutional block trades May 26

    Five substantial NSE block trades recorded with deal values ranging from ₹25.38 crores to ₹178.54 crores, indicating sustained institutional interest.

Neutral 2
  • CLSA GenAI investor event Jun 10

    Tech Mahindra hosting virtual investor meeting on June 15, 2026 as part of CLSA GenAI Access Days.

  • June investor conferences scheduled May 28

    Company scheduled investor meetings on June 3-4, 2026 in Mumbai at Morgan Stanley India Investment Forum and Citi India Conference.

TL;DR: Tech Mahindra is navigating a difficult period with significant YoY underperformance (-15.63%) against both broader markets and IT sector peers. The ₹36 dividend and institutional block trades signal underlying confidence, while the late-May rally showed brief momentum. However, the June resumption of declines with below-average volumes suggests the trend is deteriorating, and near-term recovery depends on broader IT sector sentiment and upcoming investor engagement catalysts.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
13,718
13,159
12,864
13,101
12,871
13,006
13,313
13,286
13,384
13,351
13,995
14,393
15,076
Expenses
11,915
11,821
11,950
11,955
11,772
11,441
11,563
11,477
11,545
11,416
11,830
12,028
12,511
Operating Profit
1,803
1,338
914
1,146
1,099
1,564
1,750
1,809
1,839
1,935
2,165
2,366
2,565
OPM %
13%
10%
7%
9%
9%
12%
13%
14%
14%
14%
15%
16%
17%
Other Income
306
200
264
92
380
147
522
23
173
219
40
-293
-205
Interest
93
120
98
116
58
72
89
76
85
78
77
94
89
Depreciation
490
447
466
443
461
462
470
459
462
458
469
474
481
PBT
1,525
971
615
679
959
1,178
1,714
1,297
1,464
1,618
1,659
1,505
1,791
Tax %
26%
28%
18%
23%
31%
27%
27%
24%
22%
30%
28%
26%
24%
Net Profit
1,125
704
505
524
664
865
1,258
989
1,142
1,129
1,202
1,119
1,356
EPS in Rs
11.47
7.1
5.06
5.23
6.77
8.71
12.78
10.05
11.92
11.65
12.19
11.45
13.82
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
22,621
26,494
29,141
30,773
34,742
36,868
37,855
44,646
53,290
51,996
52,988
56,815
Expenses
18,428
22,234
24,956
26,063
28,471
31,365
31,059
36,626
45,527
47,489
46,024
47,783
Operating Profit
4,193
4,260
4,184
4,710
6,271
5,503
6,796
8,020
7,763
4,506
6,964
9,033
OPM %
19%
16%
14%
15%
18%
15%
18%
18%
15%
9%
13%
16%
Other Income
106
453
775
1,417
534
1,192
788
1,115
965
927
864
-240
Interest
69
97
129
162
133
192
174
163
326
392
322
337
Depreciation
611
759
978
1,085
1,129
1,446
1,458
1,520
1,957
1,817
1,853
1,882
PBT
3,618
3,857
3,853
4,879
5,543
5,058
5,953
7,452
6,446
3,224
5,653
6,573
Tax %
27%
22%
26%
22%
23%
23%
27%
24%
25%
26%
25%
27%
Net Profit
2,659
3,027
2,851
3,786
4,289
3,897
4,353
5,630
4,857
2,397
4,253
4,806
EPS in Rs
27.35
30.92
28.88
38.78
43.7
41.76
45.73
57.27
49.6
24.14
43.43
49.1
Div. Payout %
22%
35%
28%
33%
29%
32%
89%
47%
91%
150%
94%
94%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
480
436
439
442
444
436
437
439
440
441
442
443
Reserves
11,768
14,155
15,998
18,401
19,841
21,377
24,428
26,447
27,484
26,228
26,919
29,173
Borrowings
700
1,091
1,366
2,397
1,996
3,670
2,901
2,618
2,740
2,537
2,025
2,186
Other Liabilities
6,899
6,843
8,254
9,192
11,166
11,834
11,836
14,911
15,162
13,943
14,880
17,568
Total Liabilities
19,848
22,525
26,057
30,431
33,446
37,318
39,602
44,416
45,827
43,149
44,267
49,369
Fixed Assets
4,033
4,309
6,460
7,622
7,061
8,872
9,018
14,784
14,932
13,903
13,982
14,864
CWIP
568
629
373
240
276
50
118
165
120
133
21
27
Investments
2,103
1,297
2,396
4,841
7,342
5,848
10,238
4,884
3,388
3,238
3,182
3,426
Other Assets
13,145
16,289
16,828
17,728
18,766
22,548
20,228
24,583
27,388
25,875
27,082
31,053
Total Assets
19,848
22,525
26,057
30,431
33,446
37,318
39,602
44,416
45,827
43,149
44,267
49,369
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
2,448
3,137
4,071
3,554
4,432
4,358
8,094
5,285
5,572
6,376
5,786
6,172
Investing
-1,865
-1,453
-2,893
-3,319
-2,104
1,081
-5,433
480
-226
-1,318
20
-409
Financing
-829
-496
-1,571
-269
-2,251
-4,466
-2,987
-4,667
-5,078
-4,767
-5,834
-5,130
Net Cash Flow
-246
1,188
-392
-35
77
974
-326
1,098
267
291
-29
632
Free Cash Flow
1,335
2,266
3,311
2,763
3,653
3,529
7,521
4,450
4,603
5,639
5,303
5,626
CFO/OP
84
105
123
108
97
107
140
95
97
169
104
87
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
84
80
67
77
73
75
62
98
88
80
80
48
Cash Conversion Cycle
84
80
67
77
73
75
62
98
88
80
80
48
Working Capital Days
54
58
57
42
24
35
24
29
28
23
25
51
ROCE %
32%
27%
23%
24%
25%
22%
23%
26%
22%
12%
19%
23%

Shareholding Pattern

As of Mar 2026
DIIs 37.33%
Promoters 34.97%
FIIs 18.59%
Public 7.15%
Others 1.78%
Government 0.17%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
35.76%
35.73%
35.70%
35.67%
35.26%
35.24%
35.22%
35.19%
35.18%
35.16%
35.13%
35.11%
35.09%
35.04%
35.03%
35.01%
35.01%
35.00%
34.98%
34.98%
34.97%
FIIs
0.01%
0.01%
0.01%
0.01%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
24.58%
24.15%
23.28%
23.66%
24.20%
22.95%
23.28%
20.60%
17.94%
18.59%
DIIs
14.23%
16.31%
16.81%
17.10%
17.96%
20.63%
22.33%
23.94%
25.85%
26.96%
25.55%
29.02%
29.52%
30.76%
31.00%
30.74%
32.12%
32.13%
34.64%
37.79%
37.33%
Government
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
0.17%
Public
8.28%
8.29%
8.38%
8.38%
9.01%
10.03%
9.63%
9.87%
9.10%
9.26%
8.68%
9.31%
9.21%
8.87%
8.29%
8.05%
7.94%
7.64%
7.82%
7.39%
7.15%
Others
41.55%
39.49%
38.92%
38.67%
37.58%
33.93%
32.66%
30.83%
29.70%
28.45%
30.47%
1.82%
1.86%
1.88%
1.85%
1.84%
1.82%
1.78%
1.78%
1.74%
1.78%
No. of Shareholders
5,30,921
5,45,613
5,90,450
6,09,640
7,31,453
8,89,606
9,73,207
9,92,238
9,36,534
9,29,827
8,85,590
8,67,373
8,48,484
8,26,284
7,74,997
7,61,383
7,61,701
7,48,176
7,66,782
7,39,883
7,38,055

Documents

Frequently Asked Questions about Tech Mahindra Ltd

What does Tech Mahindra Ltd do?
Tech Mahindra Ltd provides comprehensive range of IT services, including IT enabled service, application development and maintenance, consulting and enterprise business solutions, etc. to a diversified base of corporate customers in a wide range of industries.[1]
Where is Tech Mahindra Ltd (TECHM) listed?
Tech Mahindra Ltd is listed on the Indian stock exchanges. It is listed on NSE: TECHM and BSE: 532755. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Tech Mahindra Ltd belong to?
Tech Mahindra Ltd operates in the Information Technology sector within the IT - Software industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Tech Mahindra Ltd?
Tech Mahindra Ltd has a market capitalisation of approximately ₹142920.46 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Tech Mahindra Ltd?
The Price-to-Earnings (PE) ratio of Tech Mahindra Ltd is 29.26. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Tech Mahindra Ltd?
Over the past 52 weeks, Tech Mahindra Ltd has traded between a low of ₹1,304.1 and a high of ₹1,854. This range helps investors understand the stock's price volatility and recent trading levels.
Does Tech Mahindra Ltd pay dividends?
Yes, Tech Mahindra Ltd has a dividend yield of 3.49%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Tech Mahindra Ltd?
Tech Mahindra Ltd has a Return on Equity (ROE) of 8.83%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Tech Mahindra Ltd on Tapetide?
On Tapetide, you can view Tech Mahindra Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Tech Mahindra Ltd provides comprehensive range of IT services, including IT enabled service, application development and maintenance, consulting and enterprise business solutions, etc. to a diversified base of corporate customers in a wide range of industries.[1]

Website techmahindra.com
CEO Mr. Mohit Joshi
Employees 1,49,616
Listed 2006-08-28
Face Value ₹ 5
Issued Size 97,97,21,333

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