Tech Mahindra Ltd.

NSE: TECHM · Computers - Software & Consulting

52W Range₹1,304 ₹1,854

Snapshot

Unlock Tech Mahindra Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Tech Mahindra Limited is a global provider of information technology services, consulting, and business process outsourcing solutions. The company serves a diverse range of industries, including telecommunications, banking, manufacturing, and healthcare, through a comprehensive portfolio of digital and engineering services.

Business Model

The company generates revenue primarily through IT services and business process outsourcing contracts, offering both project-based and managed services. It leverages a global delivery model to provide consulting, application development, infrastructure management, and digital transformation services to enterprise clients.

Growth Outlook

Growth is driven by the increasing demand for digital transformation, cloud migration, and artificial intelligence integration across global enterprises. The company continues to focus on expanding its footprint in high-growth sectors like healthcare, hi-tech, and manufacturing.

Key Risks

  • Client Concentration. A significant portion of revenue is derived from the telecommunications sector, making the company vulnerable to industry-specific downturns or reduced capital expenditure by major telecom operators.
  • Currency Volatility. As a global exporter of IT services, the company faces exposure to fluctuations in foreign exchange rates, particularly between the Indian Rupee and the US Dollar.
  • Talent Retention. The highly competitive nature of the IT services industry requires the continuous attraction and retention of skilled technical talent to maintain service delivery standards.
  • Geopolitical Risks. Operating across multiple international jurisdictions exposes the company to regulatory changes, trade restrictions, and geopolitical instability that may impact global operations.

Price

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Key Metrics

REVENUE

₹56,815 Cr

TTM · consolidated

+7.2%YoY

NET PROFIT

₹4,806 Cr

TTM · consolidated

+13.0%YoY

EPS

₹54.28

TTM · consolidated

+13.1%YoY

RETURN ON EQUITY

17.2%

TTM · consolidated

+1.4 ppYoY

RETURN ON CAPITAL EMPLOYED

21.2%

TTM · consolidated

+1.4 ppYoY

P/E

27.8x

Q4 FY26 · consolidated

27.8 vs 37.3x5Y avg

EV/EBITDA

14.4x

Q4 FY26 · consolidated

14.4 vs 20.5x5Y avg

EBITDA MARGIN

16.0%

TTM · consolidated

+1.2 ppYoY

NET PROFIT MARGIN

9.0%

Q4 FY26 · consolidated

+0.5 ppYoY

DEBT TO EQUITY

0.1x

Q4 FY26 · consolidated

+0.00xYoY

Peers · Computers - Software & Consulting

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Tech Mahindra Ltd.TECHM
1,40,18127.8214.447.2%16.0%17.2%21.2%-6.1%
Wipro Ltd.WIPRO
1,98,91214.118.404.0%23.4%15.8%18.8%-32.4%
LTIMindtreeLTM
1,25,17323.9813.6511.3%20.4%21.6%27.9%
Persistent Systems Ltd.PERSISTENT
77,13942.2626.2023.5%20.2%27.8%35.2%-9.5%
MphasiS Ltd.MPHASIS
40,74324.0413.7911.6%20.8%18.8%25.2%-18.2%
Coforge Ltd.COFORGE
37,72534.5816.8533.8%18.4%24.3%20.8%-18.7%

As of Q4 FY26

Financials