IT - Software
Valuation | |
|---|---|
| Market Cap | 1.71 LCr |
| Price/Earnings (Trailing) | 33.41 |
| Price/Sales (Trailing) | 3.08 |
| EV/EBITDA | 19.98 |
| Price/Free Cashflow | 27.48 |
| MarketCap/EBT | 27.34 |
| Enterprise Value | 1.69 LCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | 2.5% |
| Price Change 1M | 9.6% |
| Price Change 6M | 21.2% |
| Price Change 1Y | 4.4% |
| 3Y Cumulative Return | 19.8% |
| 5Y Cumulative Return | 12.6% |
| 7Y Cumulative Return | 12.9% |
| 10Y Cumulative Return | 13.9% |
| Revenue (TTM) |
| 55.53 kCr |
| Rev. Growth (Yr) | 8% |
| Earnings (TTM) | 4.59 kCr |
| Earnings Growth (Yr) | 13.1% |
Profitability | |
|---|---|
| Operating Margin | 12% |
| EBT Margin | 11% |
| Return on Equity | 16.42% |
| Return on Assets | 10.02% |
| Free Cashflow Yield | 3.64% |
| Cash Flow from Investing (TTM) | -23.2 Cr |
| Cash Flow from Operations (TTM) | 5.79 kCr |
| Cash Flow from Financing (TTM) | -5.8 kCr |
| Cash & Equivalents | 4.17 kCr |
| Free Cash Flow (TTM) | 5.19 kCr |
| Free Cash Flow/Share (TTM) | 53.02 |
Balance Sheet | |
|---|---|
| Total Assets | 45.83 kCr |
| Total Liabilities | 17.88 kCr |
| Shareholder Equity | 27.95 kCr |
| Current Assets | 24.97 kCr |
| Current Liabilities | 13.64 kCr |
| Net PPE | 2.47 kCr |
| Inventory | 96.1 Cr |
| Goodwill | 8.03 kCr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.05 |
| Debt/Equity | 0.07 |
| Interest Coverage | 17.7 |
| Interest/Cashflow Ops | 18.64 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 45 |
| Dividend Yield | 2.58% |
| Shares Dilution (1Y) | 0.10% |
| Shares Dilution (3Y) | 0.60% |
Past Returns: In past three years, the stock has provided 19.8% return compared to 12.8% by NIFTY 50.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Dividend paying stock. Dividend yield of 2.58%.
Technicals: Bullish SharesGuru indicator.
Momentum: Stock price has a strong positive momentum. Stock is up 9.6% in last 30 days.
Size: It is among the top 200 market size companies of india.
Balance Sheet: Strong Balance Sheet.
Profitability: Recent profitability of 8% is a good sign.
Smart Money: Smart money is losing interest in the stock.
Insider Trading: Significant insider selling noticed recently.
Past Returns: In past three years, the stock has provided 19.8% return compared to 12.8% by NIFTY 50.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Dividend paying stock. Dividend yield of 2.58%.
Technicals: Bullish SharesGuru indicator.
Momentum: Stock price has a strong positive momentum. Stock is up 9.6% in last 30 days.
Size: It is among the top 200 market size companies of india.
Balance Sheet: Strong Balance Sheet.
Profitability: Recent profitability of 8% is a good sign.
Smart Money: Smart money is losing interest in the stock.
Insider Trading: Significant insider selling noticed recently.
Investor Care | |
|---|---|
| Dividend Yield | 2.58% |
| Dividend/Share (TTM) | 45 |
| Shares Dilution (1Y) | 0.10% |
| Earnings/Share (TTM) | 52.18 |
Financial Health | |
|---|---|
| Current Ratio | 1.83 |
| Debt/Equity | 0.07 |
Technical Indicators | |
|---|---|
| RSI (14d) | 73.41 |
| RSI (5d) | 76.2 |
| RSI (21d) | 66.54 |
| MACD Signal | Buy |
| Stochastic Oscillator Signal | Sell |
| SharesGuru Signal | Buy |
| RSI Signal | Sell |
| RSI5 Signal | Sell |
| RSI21 Signal | Hold |
| SMA 5 Signal | Sell |
| SMA 10 Signal |
Updated Jan 31, 2026
Tech Mahindra has partnered with CS Tech AI to enhance operational efficiency and modernization for enterprises globally.
Milan Vaishnav expects HCL Technologies (TECHM) to see meaningful upward movement due to its strong relative strength.
The strategic partnership with CS Tech AI is expected to bolster Tech Mahindra's market presence and capabilities in digital public infrastructure.
Summary of Tech Mahindra's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
For the quarter ended December 31, 2025, Tech Mahindra management expressed a positive outlook, highlighting robust deal momentum and significant growth in various sectors. Key points from the management's commentary included:
Record Deal Bookings: The company recorded its highest quarterly deal bookings in the past five years, amounting to $1,096 million, reflecting a 48% year-on-year growth.
Major Deal Win in Europe: A strategic engagement with a leading European telco was highlighted, with a total contract value exceeding $500 million over five years. This deal aims at comprehensive modernization and is expected to drive substantial growth in Europe.
Revenue Growth: Revenue grew 2.7% year-on-year and 1.5% quarter-on-quarter (QoQ) on a reported basis, with constant currency figures of 1.3% year-on-year and 1.7% QoQ growth. Total revenue for the quarter was $1,610 million, or INR 14,393 crores.
Operating Margin Expansion: Operating margins expanded by 290 basis points year-on-year to 13.1%, marking the ninth consecutive quarter of margin expansion.
Positive Outlook for Verticals: The Communications vertical grew 4.7% year-on-year, and management anticipates further stabilization and growth in Europe. Manufacturing showed strong growth at 11.7% year-on-year, and Retail, Travel, and Logistics equally recorded 11.7% growth.
Strategic Focus: The management emphasized a commitment to leveraging AI and technology integration across enterprise operations, contributing to effective client partnerships and revenue growth.
Future Plans: Management expressed confidence in achieving growth higher than the peer average by the end of FY27, with a target EBIT margin of 15%.
Overall, the management's outlook underscored optimism about ongoing growth opportunities, a solid deal pipeline, and transformative initiatives driving the company's strategic objectives.
Understand Tech Mahindra ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Mahindra & Mahindra Limited | 25.32% |
| Life Insurance Corporation Of India | 11.49% |
| TML Benefit Trust through Puneet Renjhen | 9.62% |
| Sbi Nifty 50 Etf | 4.69% |
| Icici Prudential Technology Fund | 2.43% |
| Kotak Flexicap Fund | 2.18% |
| Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Flexi Cap Fund |
Detailed comparison of Tech Mahindra against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| TCS | Tata Consultancy Services | 11.3 LCr | 2.65 LCr | -2.60% | -23.80% | 23.69 | 4.26 | - | - |
| INFY | Infosys | 6.65 LCr | 1.78 LCr |
Comprehensive comparison against sector averages
TECHM metrics compared to IT
| Category | TECHM | IT |
|---|---|---|
| PE | 33.41 | 25.26 |
| PS | 3.08 | 3.72 |
| Growth | 3.7 % | 6.3 % |
Tech Mahindra is a Computers - Software & Consulting company based in Pune, India, and operates internationally across the Americas, Europe, and India. Its stock ticker is TECHM, and it boasts a market capitalization of Rs. 143,049.7 Crores.
The company divides its operations into two main segments: Information Technology (IT) Business and Business Process Outsourcing (BPO). It offers a wide range of services, including:
Additionally, Tech Mahindra provides infrastructure and cloud services such as cloud and FLEX Digital workplace, data center services, as well as engineering and network services. They also specialize in digital enterprise applications, business process services, cyber security, blockchain, metaverse services, and customer experience and sustainability solutions.
The company serves a diverse array of sectors which include:
Incorporated in 1986, Tech Mahindra has reported a trailing 12 months revenue of Rs. 53,531.8 Crores. The company is also shareholder-friendly, distributing dividends with a yield of 3.76% annually, returning Rs. 55 dividend per share in the past year.
Over the last three years, Tech Mahindra has experienced a revenue growth of 24.2%, despite a 0.8% dilution of shareholder holdings during the same period.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
TECHM vs IT (2021 - 2026)
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Question 1: Kumar Rakesh from BNP Paribas asked about the higher-than-usual furloughs in BFSI and the impact of productivity pass-through.
Answer: The BFSI sector, although relatively small for us, has shown positive momentum despite this quarter's weakness. We encountered higher furloughs in markets like Canada due to client budgeting cycles. While the productivity benefits from larger contracts have decreased, we do not expect further spillover into the current quarter and aim to return to our growth trajectory.
Question 2: Nitin Padmanabhan from Investec inquired if the $500 million telecom deal was entirely net new revenue and its expected impact on margins.
Answer: Yes, the $500 million figure reflects only the net new revenue from an existing customer. This deal will commence execution in the first half of the next financial year. We've maintained a disciplined approach to pricing to ensure profitability, so while execution challenges may arise, we haven't signed money-losing deals.
Question 3: Sudheer Guntupalli from Kotak Mahindra asked whether high single-digit revenue growth in FY27 is achievable.
Answer: While I cannot predict exact figures for FY27, we are optimistic due to improving tech spend reflected in our current bookings. Our large clients are consistently growing faster, providing confidence in our financial performance moving forward.
Question 4: Rishi Jhunjhunwala from IIFL wanted to understand risks and growth drivers in the BPO segment amid AI concerns.
Answer: The growth in our BPO sector stems from strong leadership and the infusion of technologies like AI and automation. Although profitability has faced temporary dips, we are optimistic about continuing our growth trajectory and entering new revenue-generating areas.
Question 5: Rod Bourgeois from DeepDive Equity Research asked if current growth positions are sustainable post achieving growth targets.
Answer: We're pleased with progress and believe the improvements are sustainable due to our quality leadership and focus on large accounts, which provide stickier revenue. Increased momentum and visibility from our large deal book underpin our confidence for FY27 and beyond.
Question 6: Sandeep Shah from Equirus Securities inquired about the anticipated annual deal TCV.
Answer: It appears reasonable to project achieving around $3.5 to $4 billion in annual deal TCVs, as our momentum suggests stability in performance, although results will fluctuate by quarter.
These responses reflect the perspectives of Tech Mahindra's leadership on their current performance and strategic outlook based on various queries from analysts during the earnings call.
| 1.79% |
| Uti Nifty 50 Etf | 1.39% |
| Tata Digital India Fund | 1.3% |
| Nippon Life India Trustee Ltd-A/C Nippon India Etf Nifty 50 Bees | 1.08% |
| Mahindra Holdings Ltd | 0.02% |
| Mahindra-Bt Investment Company (Mauritius) Limited | 0.02% |
| Ã…re Villa 3 AB [Formerly known as Visionsbolaget 12191 AB | 0% |
| Automobili Pininfarina Americas Inc. (formerly known as Harkey Acquisition, L.L.C., USA ) | 0% |
| Automobili Pininfarina GmbH [Formerly known as Blitz 18-371 GmbH] | 0% |
| B.S.A. Motor Cycles Limited | 0% |
| Bristlecone (Malaysia) SDN.BHD | 0% |
| Bristlecone (Singapore) Pte. Limited | 0% |
| Bristlecone Consulting Limited | 0% |
| Bristlecone GmbH | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
| -11.80% |
| 24.27 |
| 3.75 |
| - |
| - |
| HCLTECH | HCL Tech | 4.6 LCr | 1.28 LCr | +4.40% | -1.00% | 27.9 | 3.59 | - | - |
| WIPRO | Wipro | 2.48 LCr | 95.1 kCr | -10.00% | -23.30% | 18.7 | 2.61 | - | - |
| LTIM | LTIMindtree | 1.77 LCr | 41.96 kCr | -1.50% | +2.30% | 37.23 | 4.22 | - | - |
Restructuring • 21 Jan 2026 Liquidation of a step-down subsidiary of the Company |
Earnings Call Transcript • 20 Jan 2026 Transcript of quarterly earnings conference call for the quarter ended 31st December,2025. |
Allotment of ESOP / ESPS • 19 Jan 2026 Allotment of Equity Shares pursuant to exercise of Employee Stock Options |
Newspaper Publication • 17 Jan 2026 Enclosed the Newspaper Publication of Financial Results. |
Investor Presentation • 16 Jan 2026 Enclosed |
Analyst / Investor Meet • 16 Jan 2026 Outcome and Audio recording of quarterly earnings conference call with Analyst/Institutional Investors/Funds for the quarter ended 31st December, 2025 - Regulations 30 and 46 of the Securities .... |
Analysis of Tech Mahindra's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2025
| Description | Share | Value |
|---|---|---|
| IT | 83.9% | 12.1 kCr |
| BPS | 16.1% | 2.3 kCr |
| Total | 14.4 kCr |
| Exceptional items before tax | -7094.7% | -272.4 | -2.8 | 0 | -1.2 | 6.6 | 0.6 |
| Total profit before tax | -9.3% | 1,504 | 1,659 | 1,618 | 1,464 | 1,297 | 1,713 |
| Current tax | -10.1% | 482 | 536 | 532 | 499 | 410 | 634 |
| Deferred tax | -22.2% | -95.5 | -78 | -42.3 | -176.9 | -101.4 | -177.7 |
| Total tax | -15.8% | 386 | 458 | 489 | 322 | 309 | 456 |
| Total profit (loss) for period | -6.9% | 1,119 | 1,202 | 1,129 | 1,142 | 989 | 1,257 |
| Other comp. income net of taxes | 2460.5% | 204 | -7.6 | 476 | 206 | -141.4 | 133 |
| Total Comprehensive Income | 10.7% | 1,322 | 1,194 | 1,604 | 1,348 | 847 | 1,390 |
| Earnings Per Share, Basic | -6.6% | 12.66 | 13.48 | 12.87 | 13.17 | 11.101 | 14.12 |
| Earnings Per Share, Diluted | -6.6% | 12.64 | 13.46 | 12.86 | 13.15 | 11.084 | 14.1 |
| 4.9% |
| 855 |
| 815 |
| 813 |
| 660 |
| 662 |
| 667 |
| Other expenses | -1.7% | 23,252 | 23,644 | 22,918 | 18,187 | 15,148 | 16,243 |
| Total Expenses | 1.6% | 41,453 | 40,787 | 38,882 | 29,964 | 25,036 | 26,259 |
| Profit Before exceptional items and Tax | 75.4% | 4,497 | 2,565 | 4,904 | 6,285 | 5,527 | 5,332 |
| Total profit before tax | 75.4% | 4,497 | 2,565 | 4,904 | 6,285 | 5,527 | 5,332 |
| Current tax | 98.4% | 1,235 | 623 | 1,203 | 1,241 | 1,360 | 881 |
| Deferred tax | -30.6% | -244.2 | -186.8 | -76.1 | 131 | -72.9 | -83.6 |
| Total tax | 127.6% | 991 | 436 | 1,127 | 1,372 | 1,288 | 798 |
| Total profit (loss) for period | 64.7% | 3,506 | 2,129 | 3,778 | 4,913 | 4,239 | 4,534 |
| Other comp. income net of taxes | -350% | -59 | 25 | -248 | 108 | 245 | -323.4 |
| Total Comprehensive Income | 60.1% | 3,447 | 2,154 | 3,530 | 5,021 | 4,484 | 4,211 |
| Earnings Per Share, Basic | 67.6% | 35.78 | 21.754 | 38.686 | 50.483 | 43.76 | 46.894 |
| Earnings Per Share, Diluted | 67.8% | 35.71 | 21.689 | 38.544 | 50.113 | 43.41 | 46.565 |
| -3% |
| 33 |
| 34 |
| 35 |
| 71 |
| 73 |
| 75 |
| Goodwill | 0% | 590 | 590 | 320 | 320 | 320 | 320 |
| Non-current investments | - | 0 | 0 | 0 | 10,662 | 0 | 10,823 |
| Total non-current financial assets | -17.2% | 390 | 471 | 490 | 13,802 | 158 | 10,998 |
| Total non-current assets | -3.1% | 18,090 | 18,661 | 18,203 | 17,883 | 18,263 | 18,691 |
| Total assets | 0.1% | 36,206 | 36,181 | 34,747 | 34,664 | 34,513 | 36,035 |
| Borrowings, non-current | 8.5% | 924 | 852 | 344 | 0 | 0 | 0 |
| Total non-current financial liabilities | 8.5% | 924 | 852 | 344 | 333 | 396 | 602 |
| Provisions, non-current | 1.6% | 1,193 | 1,174 | 1,092 | 1,055 | 806 | 609 |
| Total non-current liabilities | 3.1% | 3,357 | 3,256 | 2,688 | 1,425 | 2,462 | 1,236 |
| Borrowings, current | 3.9% | 239 | 230 | 161 | 2,638 | 0 | 0 |
| Total current financial liabilities | 1.2% | 7,190 | 7,105 | 6,649 | 8,450 | 5,934 | 6,903 |
| Provisions, current | 8.7% | 998 | 918 | 911 | 774 | 624 | 351 |
| Current tax liabilities | 31.4% | 1,540 | 1,172 | 1,061 | 844 | 1,205 | 1,121 |
| Total current liabilities | 6.9% | 11,231 | 10,504 | 9,796 | 10,069 | 8,775 | 9,596 |
| Total liabilities | 6% | 14,588 | 13,761 | 12,484 | 11,493 | 11,237 | 10,831 |
| Equity share capital | 0% | 490 | 490 | 489 | 488 | 488 | 487 |
| Total equity | -3.6% | 21,618 | 22,421 | 22,263 | 23,170 | 23,275 | 25,204 |
| Total equity and liabilities | 0.1% | 36,206 | 36,181 | 34,747 | 34,664 | 34,513 | 36,035 |
| - |
| 0 |
| 0 |
| -462.9 |
| 0 |
| - |
| - |
| Interest received | - | 0 | 0 | -84.8 | 0 | - | - |
| Income taxes paid (refund) | 23.2% | 941 | 764 | 1,441 | 1,739 | - | - |
| Other inflows (outflows) of cash | -1874.7% | -474.9 | -23.1 | -28.1 | 0 | - | - |
| Net Cashflows From Operating Activities | -14.2% | 4,293 | 5,005 | 4,102 | 2,969 | - | - |
| Cashflows used in obtaining control of subsidiaries | 34% | 513 | 383 | 1,277 | 4,359 | - | - |
| Proceeds from sales of PPE | -152.6% | 0 | 2.9 | 2.8 | 7.4 | - | - |
| Purchase of property, plant and equipment | -20.7% | 335 | 422 | 556 | 589 | - | - |
| Proceeds from sales of investment property | - | 135 | 0 | 0 | 0 | - | - |
| Dividends received | -31.4% | 419 | 610 | 1,046 | 562 | - | - |
| Interest received | 13.8% | 133 | 117 | 76 | 90 | - | - |
| Other inflows (outflows) of cash | 292.3% | 154 | 40 | 6.9 | 28 | - | - |
| Net Cashflows From Investing Activities | 993.5% | 504 | 47 | 677 | 1,672 | - | - |
| Proceeds from issuing shares | - | 0 | 0 | 0 | 82 | - | - |
| Proceeds from exercise of stock options | -65.2% | 9 | 24 | 43 | 0 | - | - |
| Payments of lease liabilities | - | 260 | 0 | 226 | 0 | - | - |
| Dividends paid | -1.9% | 4,207 | 4,290 | 4,670 | 4,362 | - | - |
| Interest paid | -12.2% | 202 | 230 | 137 | 57 | - | - |
| Net Cashflows from Financing Activities | 1.4% | -4,659.22 | -4,727.31 | -4,991.5 | -4,457.1 | - | - |
| Effect of exchange rate on cash eq. | 246% | 8.3 | -4 | 57 | 22 | - | - |
| Net change in cash and cash eq. | -54.7% | 146 | 321 | -155.53 | 206 | - | - |
Press Release / Media Release • 16 Jan 2026 enclosed |