Account menu
IT - Software
Tech Mahindra is a prominent player in the Computers - Software & Consulting sector, distinguished by its stock ticker, TECHM. With a robust market capitalization of Rs. 146,069.3 Crores, the company has established itself as a key provider of information technology services and solutions globally, catering to regions including the Americas, Europe, India, and beyond.
The company operates through two main segments: Information Technology (IT) and Business Processing Outsourcing (BPO). Its extensive service offerings encompass:
Additionally, Tech Mahindra provides a variety of infrastructure and cloud services, which include:
Tech Mahindra serves a diverse clientele across multiple sectors, including communication, banking and financial services, energy and utilities, healthcare and life sciences, hi-tech, insurance, manufacturing, media and entertainment, private equity, oil and gas, professional services, and transportation.
Incorporated in 1986 and headquartered in Pune, India, Tech Mahindra reported a trailing 12 months revenue of Rs. 53,531.8 Crores. The company also offers dividends to its investors, boasting a dividend yield of 3.69% per year, having returned Rs. 55 dividend per share in the last 12 months.
It's noteworthy that in recent years, Tech Mahindra has diluted the shareholdings of its investors by 0.8%. However, the company has demonstrated substantial revenue growth, achieving 24.2% growth over the past three years.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Dividend paying stock. Dividend yield of 3.76%.
Size: It is among the top 200 market size companies of india.
Smart Money: Smart money has been increasing their position in the stock.
Balance Sheet: Strong Balance Sheet.
No major cons observed.
Comprehensive comparison against sector averages
TECHM metrics compared to IT
| Category | TECHM | IT |
|---|---|---|
| PE | 37.90 | 25.53 |
| PS | 2.67 | 3.95 |
| Growth | -0.3 % | 4.3 % |
TECHM vs IT (2021 - 2025)
Updated Apr 27, 2025
Despite the rise in profit, Tech Mahindra's revenue for Q1 declined by 1.5% in constant currency, slightly missing expectations.
The stock price fell nearly 5% following the revenue miss in the fourth quarter, reflecting investor caution.
Challenges in key sectors like communications and manufacturing led to a decline in revenue from various segments.
Tech Mahindra's net profit surged by 18.7% year-on-year to ₹1,166.7 crore, exceeding forecasts.
The company announced a final dividend of ₹30 per share, totaling ₹45 for the fiscal year, rewarding shareholders.
Tech Mahindra secured deal wins amounting to $2.7 billion, marking a 42% year-on-year increase, indicating strong client engagement.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Analysis of Tech Mahindra's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| IT | 83.9% | 11.1 kCr |
| BPS | 16.1% | 2.1 kCr |
| Total | 13.3 kCr |
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 | 25.33% |
| Life Insurance Corporation Of India | 10.14% |
| TMLBenefitTrustThroughMrAmarjyotiBaruaTrusteeThetrustsettledbyTechMahindraLtd | 9.63% |
| Sbi Nifty 50 Etf | 3.91% |
| Kotak Flexicap Fund | 2.45% |
| Icici Prudential Technology Fund | 1.95% |
| Uti Nifty 50 Etf | 1.49% |
| Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Digital India Fund | 1.4% |
| First Sentier Investors Icvc - Stewart Investors Asia Pacific Leaders Sustainability Fund | 1.39% |
| Nps Trust- A/C Sbi Pension Fund Scheme - State Govt | 1.27% |
| Tata Digital India Fund | 1.22% |
| Government Pension Fund Global | 1.06% |
| Hdfc Trustee Company Limited-Hdfc Flexi Cap Fund | 1.05% |
| Mahindra Holdings Ltd | 0.02% |
| Mahindra-Bt Investment Company (Mauritius) Limited | 0.02% |
Distribution across major stakeholders
Distribution across major institutional holders
Investor Care | |
|---|---|
| Dividend Yield | 3.76% |
| Dividend/Share (TTM) | 55 |
| Shares Dilution (1Y) | 0.27% |
| Diluted EPS (TTM) | 42.23 |
Financial Health | |
|---|---|
| Current Ratio | 1.85 |
| Debt/Equity | 0.08 |
| Debt/Cashflow | 3.13 |
Valuation | |
|---|---|
| Market Cap | 1.43 LCr |
| Price/Earnings (Trailing) | 37.9 |
| Price/Sales (Trailing) | 2.67 |
| EV/EBITDA | 19.62 |
| Price/Free Cashflow | 29.34 |
| MarketCap/EBT | 27.81 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 53.53 kCr |
| Rev. Growth (Yr) | 0.86% |
| Rev. Growth (Qtr) | -3.85% |
| Earnings (TTM) | 3.78 kCr |
| Earnings Growth (Yr) | 88.79% |
| Earnings Growth (Qtr) | -21.37% |
Profitability | |
|---|---|
| Operating Margin | 9.59% |
| EBT Margin | 9.61% |
| Return on Equity | 14.04% |
| Return on Assets | 8.82% |
| Free Cashflow Yield | 3.41% |
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.
Last updated: Jan 25
Management Outlook:
Tech Mahindra's management expressed cautious optimism for FY25, anticipating gradual improvement in demand compared to FY24, driven by stabilized enterprise spending and GenAI adoption. They aim to achieve 15% EBIT margin by FY27 through cost optimization (Project Fortius), pyramid restructuring, pricing discipline, and automation. While telecom remains a key vertical (with growing cost consolidation deals), BFSI, Healthcare, and Life Sciences are emerging growth drivers.
Key Highlights:
2025 Expectations: Management expects incremental demand recovery, AI-led transformation deals, and margin resilience despite wage pressures. The focus remains on scaling must-win accounts and large deals while balancing portfolio risk.
Last updated: Jan 25
1. Question: "We have seen a steady buildup of net new deal momentum over the last couple of quarters. This, combined with the change in strategy, does that give you confidence of meeting industry average growth in the near term on a sequential basis maybe, given that Y-o-Y numbers may take some time to reflect?"
Answer: Mohit Joshi highlighted steady improvement in deal wins (from $381M to $745M in recent quarters) and expressed confidence in catching up to peer-average growth by FY27. He noted early transformation progress but emphasized it is too soon to declare victory.
2. Question: "Your deal wins reflect and also one of your larger competitors called it out that there is a renewed interest among global telcos in upping discretionary spends. So, finally, can we call out an inflection point in the comms vertical?"
Answer: While comms vertical momentum varied regionally (APAC improving, Europe stable, North America still challenged), Joshi noted limited scope for further deterioration and potential for gradual improvement, avoiding declaring an inflection point.
3. Question: "In terms of the broader demand outlook, compared to where we were 3 to 6 months ago, any characterization for the coming quarter?"
Answer: Joshi described 2023 as the weakest year, 2024 as an incremental improvement, and 2025 likely better than 2024, though recovery remains gradual, not V-shaped.
4. Question: "Do you have GenAI-related offerings or capabilities that are differentiated and actively impacting the market?"
Answer: TechM emphasized sovereign LLM development, domain-specific SLMs/TinyLMs, Agentic AI (AgentX), and Neuro-symbolic AI research. Partnerships (NVIDIA, AWS) and vertical-specific AI solutions (manufacturing, healthcare) were highlighted as key differentiators.
5. Question: "Can you discuss underlying transformation progress not visible externally, and remaining opportunities to achieve FY27 targets?"
Answer: Leadership alignment, must-win client growth (40+ new accounts), and large-deal momentum ($745M in Q3) were cited. Focus on portfolio rebalancing, service-line investments, and operational efficiency (DSO improvements, delivery automation) remain critical.
6. Question: "Three of the six large deals discussed are from telecom. Is this an enduring trend?"
Answer: Telecom deal activity is growing but remains cost/consolidation-focused, not discretionary. TechM stressed retaining telecom leadership while expanding other verticals (BFSI, healthcare) for a balanced portfolio.
7. Question: "Other verticals show traction. What is driving growth here?"
Answer: Growth in "other" verticals (e.g., global public sector) stemmed from project ramps. TechM emphasized structured vertical focus, solutions, and partnerships (e.g., Temenos in BFSI) to sustain diversification.
8. Question: "Will forex losses persist if INR rates prevail?"
Answer: CFO Rohit Anand acknowledged cross-currency headwinds and hedging impacts, confirming forex volatility could affect reported numbers if INR depreciates further.
9. Question: "Margin improved 300bps; are you ahead of the $250M savings target? Does this improve FY27 visibility?"
Answer: Savings and investments are on track, with normalized metrics showing steady progress. Anand reaffirmed FY15% EBIT target, citing productivity, pricing, and automation as ongoing levers.
10. Question: "How sustainable are the $745M deal wins, and can they grow further?"
Answer: Deal wins reflect broad vertical/geographic diversification beyond telecom. Joshi emphasized funnel expansion, disciplined contracting, and selective deal choices but noted inherent lumpiness in large deals.
11. Question: "Weakness in Pininfarina/auto: Is European auto stress spilling over to other regions?"
Answer: Most auto exposure (ex-Pininfarina) is in resilient US/Japanese markets. TechM's engineering focus and geographic diversification mitigate Europe-specific risks, though prolonged downturns remain a concern.
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 ServicesComputers - Software & Consulting | 12.48 LCr | 2.56 LCr | -5.17% | -10.49% | 25.46 | 4.87 | +5.31% | +8.82% |
| INFY | InfosysComputers - Software & Consulting | 6.15 LCr | 1.65 LCr | -7.47% | +2.89% | 22.2 | 3.72 | +5.96% | +13.44% |
| HCLTECH | HCL TechComputers - Software & Consulting | 4.28 LCr | 1.18 LCr | -3.38% | +4.92% | 25.07 | 3.64 | +7.49% | +8.85% |
| WIPRO | WiproComputers - Software & Consulting | 2.52 LCr | 92.14 kCr | -9.91% | +4.51% | 20.2 | 2.74 | -1.32% | +10.05% |
| LTIM | LTIMindtreeComputers - Software & Consulting | 1.33 LCr | 38.08 kCr | -2.63% | -2.94% | 29.14 | 3.5 | +6.13% | -0.52% |