Tech Mahindra Ltd logo

Tech Mahindra Ltd

TECHM NSE

Key Fundamentals

Volatility
Moderate
P/E Ratio
31.15
EBITDA
₹9,066 Cr
Return on Equity
15.98%
Debt to Equity
0.07
EPS
₹25.74
52W High
₹1,854
52W Low
₹1,304.1

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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49 extracted metrics + investor summaries across FY15–FY26.

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Tapetide Score

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Technical Indicators

Key Insights

Strengths

3
  • Company is almost debt free.
  • Stock is providing a good dividend yield of 3.12%.
  • Company has been maintaining a healthy dividend payout of 112%

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 13.3% over last 3 years.

Growth Rate

Revenue Growth
5.58% ↗
Net Income Growth
12.99% ↗
Cash Flow Change
6.68% ↗
ROE
4.44% ↘
ROCE
5.54% ↘
EBITDA Margin (Avg.)
9.85% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 9d ago
AI opinion · based on fundamentals
Risk medium

Tech Mahindra is a nearly debt-free IT services company with a market cap of ~₹1,61,984 crore trading at a PE of 31.3x. Revenue growth has been modest at 8% CAGR over 5 and 10 years, while the stock offers a dividend yield of 3.09% supported by a payout ratio of 112%.

Bull Case 7
  • Company is almost debt-free, providing financial flexibility and resilience during downturns
  • Dividend yield of 3.09% is among the highest in the Indian IT sector, with a payout ratio of 112% demonstrating shareholder-friendly capital allocation
  • TTM sales growth has accelerated to 11%, significantly above the 3-year CAGR of 2%, suggesting a revenue recovery trajectory
  • TTM profit growth of 17% indicates improving margin execution compared to the 5-year profit CAGR of just 2%
  • Last year ROE of 18% shows improvement over the 3-year average of 13% and 5-year average of 16%, signaling better capital efficiency
  • 10-year stock CAGR of 13% demonstrates long-term wealth creation despite near-term volatility
  • Price-to-book ratio of 5.45x is reasonable for a debt-free IT company with improving profitability metrics
Bear Case 7
  • 5-year compounded sales growth of only 8% and 3-year sales CAGR of just 2% reflect weak revenue momentum relative to IT peers
  • 3-year ROE average of only 13% is below what investors typically expect from a top-tier IT services company
  • 5-year compounded profit growth of just 2% indicates prolonged earnings stagnation before the recent recovery
  • PE of 31.3x is elevated given the modest 5-year profit CAGR of 2%, implying the market is pricing in a turnaround that must still be sustained
  • 5-year stock CAGR of only 5% has significantly underperformed broader market indices and IT sector peers over the same period
  • Dividend payout ratio of 112% exceeds net profits, which may not be sustainable if earnings do not continue improving
  • 10-year profit CAGR of 5% versus 10-year sales CAGR of 8% suggests structural margin compression over longer timeframes

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

AI News Digest

Anthropic anthropic claude-opus-4.6 2d ago
Positives 4
  • Q1 profit surges 28.5% YoY Jul 17

    Consolidated net profit rose 28.5% YoY to ₹14.65 billion for Q1 FY27, with revenue up 17.7% to ₹157.12 billion and EPS at ₹16.53.

  • Toronto AI Innovation Hub launched Aug 6

    Opened Toronto Innovation Hub on Aug 6 to drive AI-led enterprise transformation, supporting ~2,200 Canadian employees with AI upskilling across BFSI, Communications, Cybersecurity, and Cloud sectors.

  • FICO Hackathon win for e-commerce Jul 28

    Won FICO's GSI Partner Hackathon with a COD returns solution targeting 6-9% reduction in Return-to-Origin rates, potentially saving retailers ₹1 crore monthly.

  • Ongoing AI investment strategy Jul 16

    Outlined sustained investment in AI skills, platform scaling, and talent nurturing to build comprehensive AI capability across its service portfolio.

Neutral 5
  • ₹61 Cr and ₹24 Cr block trades Aug 5

    Two institutional block trades recorded: ~3.97 lakh shares at ₹1539.3 (₹61.12 Cr) on Jul 17 and ~1.44 lakh shares at ₹1651.30 (₹23.82 Cr) on Aug 5, indicating institutional activity.

  • Investor meets scheduled Aug 12-13 Aug 6

    Participating in Emkay Confluence 2026 and Equirus Annual India Conference in Mumbai on Aug 12-13, plus a Singapore non-deal roadshow on Jul 30-31.

  • Subsidiary mergers proceeding via NCLT Jul 20

    Merger of Zen3 Infosolutions, Tech Mahindra Enterprise Services, and Begig Private Limited progressing under NCLT orders dated Feb 12 and Jun 2, 2026, with shareholder meetings dispensed.

  • Arabia stake deadline extended Jul 17

    Extended deadline to acquire 20% stake in Tech Mahindra Arabia Limited to Aug 31, 2026, pending regulatory approvals.

  • 39th AGM concluded, FY26 approved Jul 17

    Held 39th AGM on Jul 17 via video conferencing; shareholders adopted FY26 financials and confirmed dividend payments.

TL;DR: Tech Mahindra is executing well with strong Q1 FY27 results showing 28.5% profit growth and 17.7% revenue growth, signaling healthy demand recovery. The company is doubling down on AI through strategic investments, a new Toronto hub, and hackathon wins. No material headwinds are visible in recent news flow. The trend is clearly improving, with earnings momentum and AI positioning suggesting continued positive trajectory.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
13,159
12,864
13,101
12,871
13,006
13,313
13,286
13,384
13,351
13,995
14,393
15,076
15,712
Expenses
11,821
11,950
11,955
11,772
11,441
11,563
11,477
11,545
11,416
11,830
12,028
12,511
12,974
Operating Profit
1,338
914
1,146
1,099
1,564
1,750
1,809
1,839
1,935
2,165
2,366
2,565
2,738
OPM %
10%
7%
9%
9%
12%
13%
14%
14%
14%
15%
16%
17%
17%
Other Income
200
264
92
380
147
522
23
173
219
40
-293
-205
-106
Interest
120
98
116
58
72
89
76
85
78
77
94
89
111
Depreciation
447
466
443
461
462
470
459
462
458
469
474
481
479
PBT
971
615
679
959
1,178
1,714
1,297
1,464
1,618
1,659
1,505
1,791
2,042
Tax %
28%
18%
23%
31%
27%
27%
24%
22%
30%
28%
26%
24%
27%
Net Profit
704
505
524
664
865
1,258
989
1,142
1,129
1,202
1,119
1,356
1,486
EPS in Rs
7.1
5.06
5.23
6.77
8.71
12.78
10.05
11.92
11.65
12.19
11.45
13.82
14.95
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
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
59,176
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
49,342
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
9,834
OPM %
19%
16%
14%
15%
18%
15%
18%
18%
15%
9%
13%
16%
17%
Other Income
106
453
775
1,417
534
1,192
788
1,115
965
927
864
-240
-564
Interest
69
97
129
162
133
192
174
163
326
392
322
337
371
Depreciation
611
759
978
1,085
1,129
1,446
1,458
1,520
1,957
1,817
1,853
1,882
1,902
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
6,997
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
5,163
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
52.41
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
17,366
Total Liabilities
19,848
22,525
26,057
30,431
33,446
37,318
39,602
44,416
45,827
43,149
44,267
49,168
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
30,851
Total Assets
19,848
22,525
26,057
30,431
33,446
37,318
39,602
44,416
45,827
43,149
44,267
49,168
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
-15
-314
Financing
-829
-496
-1,571
-269
-2,251
-4,466
-2,987
-4,667
-5,078
-4,767
-5,799
-5,130
Net Cash Flow
-246
1,188
-392
-35
77
974
-326
1,098
267
291
-29
728
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
86
Cash Conversion Cycle
84
80
67
77
73
75
62
98
88
80
80
86
Working Capital Days
54
58
57
42
24
35
24
29
28
23
25
30
ROCE %
32%
27%
23%
24%
25%
22%
23%
26%
22%
12%
19%
23%

Shareholding Pattern

As of Jun 2026
DIIs 36.92%
Promoters 34.96%
FIIs 18.66%
Public 9.28%
Government 0.17%
Total 99.99%
  Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
35.13%
35.10%
35.08%
35.04%
35.02%
35.01%
35.00%
34.99%
34.98%
34.97%
34.97%
34.96%
FIIs
26.22%
24.58%
24.15%
23.27%
23.67%
24.19%
22.95%
23.28%
20.60%
17.94%
18.59%
18.66%
DIIs
27.03%
28.91%
29.42%
30.66%
30.90%
30.73%
32.13%
32.13%
34.64%
37.79%
37.34%
36.92%
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%
Public
11.44%
11.22%
11.16%
10.84%
10.23%
9.88%
9.74%
9.43%
9.61%
9.14%
8.94%
9.28%
No. of Shareholders
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
7,44,161

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 Computer Software & Consulting industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the PE ratio of Tech Mahindra Ltd?
The Price-to-Earnings (PE) ratio of Tech Mahindra Ltd is 31.15. 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.
What is the Return on Equity (ROE) of Tech Mahindra Ltd?
Tech Mahindra Ltd has a Return on Equity (ROE) of 15.98%. 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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