Tech Mahindra Limited (TECHM)

Information Technology · IT - Software · NSE · Updated 14 July 2026

₹1,504.5 ↓ 4.58% (1Y)

🎯 Key Takeaways

Tech Mahindra is in a strategic reinvestment phase, leveraging acquisitions and operational improvements to drive growth in a mature IT services market. The company is actively expanding its international footprint, particularly in Latin America, while focusing on margin recovery and capital efficiency.
Revenue grew 2.8% QoQ to ₹14,393 in Q3FY26.
⚠️ Integration risks from the Brazil acquisition, as Alyis Serviços Técnicas LTDA is small-scale and its long-term strategic value depends on successful

Market Cap

₹1.34 L Cr

P/E Ratio

26.3

P/B Ratio

4.91

ROE

10.0%

ROCE

22.1%

Debt/Equity

0.07

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Tech Mahindra is in a strategic reinvestment phase, leveraging acquisitions and operational improvements to drive growth in a mature IT services market. The company is actively expanding its international footprint, particularly in Latin America, while focusing on margin recovery and capital efficiency. Recent financial trends show revenue and operating profit growth with improving operational margins, supported by cost management and integration of new capabilities.

📰 What's Happening

The company completed the acquisition of Alyis Serviços Técnicos LTDA for Rs 2.21 crores, establishing its first wholly-owned subsidiary in Brazil to support Orange Business Services customers across Latin America. This move strengthens its regional presence and service offerings in a key growth market. Additionally, Tech Mahindra has been modernizing shareholder engagement through e-voting and remote participation in its 39th AGM, enhancing governance transparency. The allotment of 103,799 shares under ESOPs 2014 and 2018 increased total issued share capital to ₹4,90,02,89,790, reflecting ongoing use of equity for talent retention.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26
Revenue	12,871	13,005	13,313	13,286	13,384	13,351	13,995	14,393
Operating Profit	1,479	1,709	2,272	1,832	2,012	2,154	2,205	2,072
OPM %	8.5%	12.0%	13.2%	13.6%	13.8%	14.5%	15.5%	16.4%
Net Profit	664	865	1,257	989	1,142	1,129	1,202	1,119
EPS	₹7.48	₹9.62	₹14.12	₹11.10	₹13.17	₹12.87	₹13.48	₹12.66

Operating performance shows a clear upward trend in revenue and profitability over the past four quarters, with Q3FY26 revenue at ₹14,393 crores and operating profit at ₹2,072 crores (OPM 16.4%), up from ₹13,286 crores revenue and ₹1,832 crores operating profit in Q3FY25 (OPM 13.6%). This improvement aligns with management's focus on cost optimization and higher-margin contracts. Net profit and EPS also reflect sequential recovery, with Q3FY26 NP at ₹1,119 crores and EPS at ₹12.66, reversing earlier declines seen in FY25. The consistent rise in operating margins from 8.5% in Q4FY24 to 16.4% in Q3FY26 indicates successful execution of operational efficiency initiatives.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue or margin expectations in the latest filings. However, the acquisition of Alyis Serviços Técnicos LTDA is positioned as a strategic step to expand LATAM capabilities, particularly for Orange Business Services. The company continues to focus on governance modernization and shareholder accessibility through digital initiatives like e-voting and dematerialization of physical shares. No formal financial targets or growth projections were disclosed in the recent announcements.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	2023-2024	2023-2024	2024-2025	2024-2025	2025-2026
Equity Capital	441	441	442	442	443
Reserves	25,971	26,228	26,004	26,919	27,061
Borrowings	1,551	1,531	2,035	2,025	2,090
Total Liabilities	16,633	16,277	15,929	16,703	17,876
Fixed Assets	2,712	2,558	2,442	2,381	2,467
Investments	2,594	3,192	2,265	3,128	3,028
Total Assets	43,491	43,424	42,827	44,495	45,828

The balance sheet shows stable equity levels around ₹442-443 crores and growing reserves, indicating retained earnings are being accumulated. Borrowings have increased slightly to ₹2,090 crores from ₹2,025 crores, but remain low relative to equity, reflecting a conservative capital structure. Total assets have grown steadily to ₹45,828 crores, driven by investments in operations and acquisitions. The capital allocation strategy appears balanced between growth investments, such as international expansion, and maintaining financial stability without aggressive leverage or large-scale buybacks.

💰 Cash Flow Statement (₹ Cr)

Item	2020-2021
Operating	+8,094
Investing	-5,450
Financing	-2,987
Net Cash Flow	—

⚖️ Peer Comparison — IT - Software

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Tata Consultancy Services Limited	8.19 L Cr	17.2	67.6%	50.4%	0.00
Infosys Limited	4.54 L Cr	16.6	40.8%	29.2%	0.00
HCL Technologies Limited	3.07 L Cr	18.6	31.9%	23.6%	0.03
Wipro Limited	1.99 L Cr	15.0	19.1%	16.1%	0.20
Tech Mahindra Limited	1.34 L Cr	26.3	22.1%	10.0%	0.07
LTM Limited	1.18 L Cr	25.7	—	—	—
Oracle Financial Services Software Limited	78,487	34.0	—	—	—
Persistent Systems Limited	74,176	54.5	—	—	—
Coforge Limited	43,059	50.2	—	—	—
MphasiS Limited	39,760	23.9	—	—	—

🔗 Peer Stock Analyses

TCS INFY HCLTECH WIPRO LTM

⚠️ Risk Factors

1. Integration risks from the Brazil acquisition, as Alyis Serviços Técnicas LTDA is small-scale and its long-term strategic value depends on successful customer integration and revenue synergies. 2. Margin pressure could re-emerge if pricing competition intensifies in key markets like North America or Europe, despite current OPM improvements. 3. Currency volatility in Latin America and other international markets may impact consolidated financials. 4. Talent retention remains critical given the ESOP-driven dilution, and any slowdown in hiring or project execution could affect growth momentum.

📋 Recent Filings

🧠 Analyst's Read

Tech Mahindra is executing a disciplined strategy to grow its international presence and improve operational efficiency, with recent financial trends supporting margin recovery. Investors should monitor the pace of integration in Brazil and the sustainability of margin expansion amid competitive pricing pressures. The company's capital allocation reflects a focus on reinvestment rather than returns, making execution risk a key watchpoint in the coming quarters.

Based on filing content and financial data. Not a recommendation.

✨ Deep Dive with AI on TECHM

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-14.

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