Tech Mahindra Limited (TECHM)
Large CapIT stocks · Large cap · NSE
Tech Mahindra is a global provider of technology consulting and digital solutions to enterprises across industries. The company offers Information Technology (IT) Services and Business Process Services (BPS), serving a diverse client base with a focus on digital transformation and next-gen technologies.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
medium confidence · 3/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 80/100Rev +18% YoY · PAT +32% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹15,712 Cr | +17.7% | +4.2% |
| EBITDA | ₹2,738 Cr | +41.5% | +6.7% |
| Operating margin | 17.0% | +300 bps | +0 bps |
| PAT | ₹1,486 Cr | +31.6% | +9.6% |
| PAT margin | 9.5% | +100 bps | +47 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 EBIT up 53.3% YoY to ₹2,264 crores; New deal wins surge 33.3% YoY to USD 1,078 Mn, driven by broad-based growth and margin expansion.
Strong Q1 performance with robust deal wins, significant EBIT margin expansion, and broad-based growth across verticals. Management's focus on strategic investments and client deepening supports the growth narrative, though the long-standing Satyam legal overhang persists.
Revenue by Segment
Latest issuer-disclosed distribution across 2 reported categories.
Deal Wins Momentum
Three consecutive quarters of deal wins exceeding $1 billion, with Q1 FY27 at USD 1,078 Mn, up 33.3% YoY.
Deepening Client Relationships
The $50 million-plus client base increased by seven, indicating stronger client engagement.
Broad-based Vertical Growth
All verticals delivered growth YoY, contributing to the overall revenue increase.
Strategic Acquisition
Acquired 85% stake in Alluri Technologies Inc. ('Avant') for Rs. 1,875 Mn (CAD 27.26 Mn) on May 27, 2026, with an agreement for the balance 15% after three years.
Business Resilience
YoY growth of 6.1% and consistent deal wins underscore the resilience of the business.
Offerings Relevance
The growing relevance of the company's offerings in the market is driving demand.
Operational Efficiency
Margin expansion and disciplined working capital management reflect consistent execution.
Satyam Legal Claims
Claims by 37 companies for alleged advances of INR 12,304 Mn to erstwhile Satyam, pending final adjudication, with appeals filed against the merger order.
Regulatory Scrutiny
Directorate of Enforcement (ED) directed erstwhile Satyam not to return alleged advances until further instructions, indicating ongoing regulatory involvement.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison reflects underlying business growth and market share changes, crucial for IT services. QoQ comparison highlights sequential momentum, project execution, and immediate operational efficiency.
Revenue (USD)
USD 1,660 Mn, up 6.1% YoY (reported) and 2.2% QoQ (reported).
EBIT Margin
14.4%, up ~330 bps YoY and ~60 bps QoQ.
Profit After Tax (PAT) (USD)
USD 154 Mn, up 16.2% YoY.
New Deal Wins TCV
USD 1,078 Mn, up 33.3% YoY.
Future-Ready Organization
Committed to building a future-ready organization through continued investments.
Strategic Investments
Investing in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent.
Growth Focus
Maintaining a clear focus on growth while making strategic investments.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| New Deal Wins | USD 1,078 Mn | Monitor consistency of deal wins above $1 billion and YoY growth rates. |
| EBIT Margin | 14.4% | Watch for continued margin expansion and operational efficiency improvements. |
| $50M+ Client Base | Up by seven | Track growth in large client accounts as an indicator of deepening relationships. |
| Satyam Legal Resolution | Pending | Observe developments in the legal proceedings regarding the alleged advances. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The company is progressing towards achieving a 15% EBIT margin for FY27.
"progressing towards a 15% EBIT margin for FY27"
Outcome check: OPM moved from 16.0% to average 17.0% (+1.0 pp).
The company expects to grow higher than the peer average by the end of FY27.
"We expect to grow higher than the peer average by the end of FY27"
Outcome check: Revenue YoY averaged 12.6% across 1 later quarter(s).
The communications vertical is well-positioned to be one of the company's growth verticals as we move into 2027.
"comms vertical is well-positioned to be one of our growth verticals as we move into 2027"
Outcome check: Revenue YoY averaged 12.6% across 1 later quarter(s).
Europe is expected to move from a phase of stability into a growth phase supported by the large deal win.
"Europe is expected to move from a phase of stability into a growth phase"
Trend score and candlestick chart
57NeutralSMA20 +1.3% / mo · MACD −
Technical chart
TECHMdaily · 1Y · AUTO+19.8%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 49. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~1.3% over last month) — short-term momentum positive.
- RSI(14) at 49 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 14% off 52W high · 22% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- 9.7% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (-0.6% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
Valuation & score drivers
U-Score 44 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 44 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.7%.
- Piotroski is strong at 8/9.
- Quality contributes 15/20 to the score.
Main drags
- Fair-value margin of safety is negative at -244.3%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Growth is weaker at 6/25; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 100% delivered/partly-delivered outcomes on 3 checked claims. It ranks around the 93rd percentile of the scored universe and 89th percentile within IT. No major sub-score weakness stands out.
High Trust: 3/4 extracted management claims have outcome checks; 100% were fully delivered and 0 were partially delivered.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 89th pctile, median 69 · Large: 83rd pctile, median 73
3/4 claims checked. Use as directional, not final.
3/4 claims checked · No contradicted claim yet
How to read this Trust Score
Healthy Trust · medium confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3.7%.
- ▸12 years of positive FCF.
- ▸Debt/equity is 0.07.
Trust risks
- ▸No major Trust Lite risk flags.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 29.40
- P/B
- 5.29
- EV/EBITDA
- 13.55
- Market Cap
- 156518.00Cr
Profitability
- ROE
- 17.50%
- ROCE
- 23.10%
- ROA
- 10.50%
- Dividend Y
- 3.19%
Growth (CAGR)
- Revenue 5Y
- 8.00%
- EPS 5Y
- 2.00%
- Revenue 3Y
- 2.00%
- EPS 3Y
- 1.00%
Balance Sheet
- Debt/Equity
- 0.07
- Interest Coverage
- 26.51×
- Altman Z
- 7.71
- Book Value
- 302.00
Cash Flow
- FCF Yield
- 3.74%
- FCF Positive Y
- 12/5
- OCF
- 6172.00 Cr
- EPS TTM
- 52.41
Shareholding
- Promoter Hold
- 34.96%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 53%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.