Tata Consultancy Services Ltd.
NSE: TCS
Technology · Information Technology Services
₹2,156.00 last close on 9 Oct 2026 +3.85%
Research updated
Tech Mahindra Ltd.
NSE: TECHMTechnologyInformation Technology Services
- Last close
- ₹1,514.10
- Day change
- +₹17.90 (+1.20%)vs
- Market cap
- ₹1.30 lakh crIndian rupees
- Research updated
- 1 report
About Tech Mahindra
Tech Mahindra Ltd. is a global information technology services and consulting company that delivers digital transformation, consulting, and systems integration solutions to enterprises across industries. Its current portfolio includes application development and maintenance, enterprise business solutions, cloud and infrastructure services, network services, cybersecurity, customer experience design, engineering services, and business process services. The company also supports clients with analytics, automation, AI-enabled solutions, and industry-specific offerings for sectors such as telecommunications, banking and financial services, retail, media, and manufacturing. Tech Mahindra Ltd. serves a broad international client base through operations in more than 90 countries, making it an important provider of technology-led business services in the global IT services market.
- Sector
- Technology
- Industry
- Information Technology Services
- Listing
- NSE: TECHM
- Chief executive
- Mr. Mohit Joshi
- Employees
- 1,49,616
- Headquarters
- Pune, India
- ISIN
- INE669C01036
- Website
- techmahindra.com
Public research · Report of
Business model & financial foundation
Tech Mahindra (NSE: TECHM), IT services and consulting (IT services, BPS, engineering services): revenue of ₹56,815 crore in FY26 (+7.2% on FY25), an EBITDA margin of 15.9%, net profit of ₹4,811 crore and net cash of ₹8,371 crore.
- Revenue, FY26 (₹ crore)
- 56,815
- consolidated
- Revenue growth, FY26
- +7.2%
- on FY25
- EBITDA margin, FY26
- 15.9%
- EBITDA (revenue less employee, subcontracting, other expenses) / revenue
- Net profit, FY26 (₹ crore)
- 4,811
- to owners
- Return on equity, FY26
- 16.9%
- on average equity
- Net debt, FY26 (₹ crore)
- -8,371
- Net debt (borrowings - cash & bank - current investments)
- Market capitalisation (₹ crore)
- 1,36,175
- at the close of 12 Oct 2026
Company profile
Tech Mahindra is India's fifth-largest IT services company (FY26 revenue Rs56,815 crore, USD 6.4bn), part of the Mahindra Group. About a third of revenue comes from communications carriers, where it is a leading global vendor, with manufacturing, BFSI, technology-media and retail as the other verticals; it reports IT services (~84%) and business process services (~16%) as its segments. Since FY25 a new management team under CEO Mohit Joshi has run a three-year turnaround (Project Fortius) targeting a 15% EBIT margin in FY27.
| Item | Value |
|---|---|
| Legal name | Tech Mahindra Limited (formerly Mahindra British Telecom Limited) |
| Exchange and ticker | NSE: TECHM; BSE: 532755 |
| ISIN | INE669C01036 |
| CIN | L64200MH1986PLC041370 |
| Sector | Information Technology |
| Industry | IT services and consulting (IT services, BPS, engineering services) |
| Headquarters | Pune, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | B S R & Co. LLP (since 2017) |
| Market capitalisation | ₹1,36,175 crore (12 Oct 2026) |
| Shares outstanding | 88.78 crore shares (FY26) |
| Price | ₹1,514 (close, 12 Oct 2026) |
| 52-week range | ₹1,304 - ₹1,854 (to 12 Oct 2026) |
| Website | https://www.techmahindra.com |
Corporate structure and shareholding
Parent: Mahindra & Mahindra Ltd (promoter, 25.31% direct; promoter group 34.97% incl. TML Benefit Trust 9.62%).
| Entity | Holding | Business |
|---|---|---|
| Tech Mahindra (Americas) Inc. | 100% | IT services, USA; the only material subsidiary |
| Tech Mahindra Consulting Group Inc. | 100% | IT consulting, Canada |
141 subsidiaries, 8 associates and 2 JVs at 31 Mar 2026 (S14). Holdings in Comviva, Pininfarina, LCC, Born, CTC and Allyis not retrieved (GP8).
| Shareholding (% of shares) | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoter | 34.98% | 34.98% | 34.97% | 34.97% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 20.60% | 17.94% | 18.59% | 18.66% |
| Domestic institutions | 34.64% | 37.79% | 37.33% | 36.92% |
| of which mutual funds | 17.56% | 19.88% | 19.06% | 19.14% |
| Retail | 7.82% | 7.39% | 7.15% | 6.92% |
| Other | 1.96% | 1.90% | 1.96% | 2.53% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Tech Mahindra sells IT services (~84% of revenue) and business process services (~16%) to enterprises in the Americas (48.6% of Q1 FY27 revenue), Europe (27.5%) and the rest of the world (23.9%). Communications carriers are the largest vertical at 32.3%, followed by manufacturing 19.3%, BFSI 16.7%, technology-media 12.9%, retail-transport-logistics 8.1% and healthcare 7.3%. Revenue is billed largely in dollars, euros and pounds; costs are mostly people (employee cost 50.1% of revenue in Q1 FY27) and subcontractors (11.4%). The company controls pricing, delivery mix and utilisation; it does not control client budgets, the rupee or AI-led deflation of effort. Promoter Mahindra & Mahindra holds 25.31% directly and 34.97% with the TML Benefit Trust.
| Segment | revenue, FY26 (₹ crore) | Share | segment result, FY26 (₹ crore) | Share |
|---|---|---|---|---|
| IT (Information Technology services) | 47,767 | 84.1% | 9,517 | 86.4% |
| BPS (Business Process Services) | 9,048 | 15.9% | 1,499 | 13.6% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Infosys (INFY) | Tier-1 Indian IT services; overlapping BFSI/manufacturing clients |
| HCL Technologies (HCLTECH) | Closest mix peer: telecom, engineering and infrastructure services |
| Wipro (WIPRO) | Margin/turnaround peer of similar scale |
| Tata Consultancy Services (TCS) | Sector bellwether; communications vertical comparison |
| LTIMindtree (LTIM) | Mid/large Indian IT services peer of similar revenue scale |
| Coforge (COFORGE) | |
| Persistent Systems (PERSISTENT) | Mid-tier growth peer; engineering/digital services |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 44,646 | 53,290 | 51,996 | 52,988 | 56,815 |
| Cost of revenue (vendor classification) * | 31,068 | 38,416 | 38,866 | 38,820 | 40,794 |
| Other operating costs (vendor classification) * | 3,351 | 4,149 | 5,341 | 4,732 | 4,035 |
| EBITDA (vendor classification) * | 8,912 | 8,516 | 5,216 | 7,273 | 9,138 |
| EBIT * | 7,593 | 6,491 | 3,276 | 5,975 | 6,911 |
| Finance costs | 141.1 | 45.6 | 392.2 | 321.7 | 337.4 |
| Profit before tax | 7,452 | 6,446 | 3,224 | 5,653 | 6,573 |
| Total tax expense | 1,822 | 1,589 | 827.6 | 1,400 | 1,768 |
| Profit after tax (incl. NCI) | 5,630 | 4,857 | 2,397 | 4,253 | 4,806 |
| Diluted EPS (INR) | 62.81 | 54.54 | 26.58 | 47.91 | 54.19 |
| Cost of equipment and software licences | n.d. | n.d. | n.d. | ||
| Employee benefits expense | 29,128 | 29,624 | 30,479 | ||
| Subcontracting expense | 6,689 | 5,838 | 6,100 | ||
| Other expenses (incl. equipment/licence costs, ECL) | 11,214 | 10,536 | 11,203 | ||
| EBITDA (revenue less employee, subcontracting, other expenses) | 4,965 | 6,991 | 9,034 | ||
| Other income (incl. forex gain/loss) | 916.9 | 855.4 | 31.9 | ||
| Depreciation and amortisation | 1,817 | 1,853 | 1,882 | ||
| Exceptional items / impairment (signed) | -458.2 | -27.3 | -272.4 | ||
| Share of profit/(loss) of associates and JVs | 10.5 | 8.60 | -1.50 | ||
| Profit attributable to non-controlling interests | 39.0 | 1.50 | -5.40 | ||
| Profit attributable to owners | 2,358 | 4,252 | 4,811 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Equity attributable to owners | 27,381 | 28,395 | 26,669 | 27,362 | 29,615 |
| Borrowings, current + non-current (excl. leases) | 2,618 | 2,740 | 1,531 | 471.4 | 69.6 |
| Cash and cash equivalents + other bank balances | 3,789 | 4,056 | 4,736 | 4,542 | 5,105 |
| Trade receivables billed (current + non-current) | 11,933 | 8,142 | 7,126 | 6,549 | 7,537 |
| Inventories * | 40.5 | 23.6 | 37.5 | 39.4 | 104.2 |
| Trade payables | 4,095 | 4,385 | 3,785 | 4,411 | 5,040 |
| Net property, plant and equipment * | 3,620 | 3,959 | 3,518 | 3,899 | 4,406 |
| Capital work in progress * | 165.1 | 83.6 | 101.1 | 20.6 | 27.3 |
| Total assets | 44,871 | 46,153 | 43,424 | 44,495 | 49,369 |
| Goodwill | 7,511 | 7,699 | 8,456 | ||
| Non-controlling interest | 477.4 | 430.2 | 461.6 | ||
| Lease liabilities, current + non-current | 1,006 | 1,554 | 2,117 | ||
| Current investments (mutual funds etc.) | 2,779 | 2,893 | 3,336 | ||
| Non-current investments (financial assets, total; excl. equity-method) | 412.2 | 235.4 | 35.2 | ||
| Net debt (borrowings - cash & bank - current investments) | -5,984 | -6,964 | -8,371 | ||
| Unbilled trade receivables | 4,276 | 4,998 | 5,821 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash from operating activities | 5,419 | 4,563 | 6,376 | 5,786 | 6,172 |
| Purchase of PPE and intangibles | -835.3 | -969.2 | -791.1 | -593.5 | -695.7 |
| Free cash flow (vendor definition) * | 4,327 | 4,557 | 5,585 | 5,192 | 5,476 |
| Dividends paid | -3,981 | -4,263 | -3,917 | -3,842 | -4,026 |
| Acquisition of business/contractual obligations, net of cash | -748.8 | -162.0 | -89.9 | ||
| Buyback of shares | 0.00 | 0.00 | 0.00 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Weighted diluted shares (crore), implied PAT to owners / diluted EPS | 87.90 | 88.22 | 88.71 | 88.74 | 88.78 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 13,313 | 13,286 | 13,384 | 13,351 | 13,995 | 14,393 | 15,076 | 15,712 |
| Cost of revenue (vendor classification) * | 9,024 | 8,883 | 12,075 | 8,810 | 9,105 | 9,591 | 9,668 | |
| Other operating costs (vendor classification) * | 2,539 | 2,594 | -5,066 | 2,606 | 2,922 | 2,920 | 3,302 | |
| EBITDA (vendor classification) * | 2,272 | 1,832 | 1,907 | 2,154 | 2,345 | 2,361 | 2,632 | |
| EBIT * | 1,803 | 1,373 | 1,550 | 1,696 | 1,599 | 1,879 | 2,153 | |
| Finance costs | 89.0 | 75.9 | 85.3 | 77.8 | 77.2 | 93.6 | 88.8 | 111.3 |
| Profit before tax | 1,714 | 1,297 | 1,464 | 1,618 | 1,659 | 1,505 | 1,791 | 2,042 |
| Total tax expense | 456.0 | 308.6 | 322.3 | 489.3 | 457.6 | 386.5 | 434.2 | 555.6 |
| Profit for the period | 1,258 | 988.8 | 1,142 | 1,129 | 1,202 | 1,119 | 1,356 | 1,486 |
| Diluted EPS (₹) | 14.10 | 11.08 | 13.15 | 12.86 | 13.46 | 12.64 | 15.24 | 16.50 |
| Cost of equipment and software licences | n.d. | n.d. | n.d. | n.d. | n.d. | n.d. | n.d. | n.d. |
| Employee benefits expense | 7,505 | 7,425 | 7,362 | 7,499 | 7,629 | 7,564 | 7,787 | 7,877 |
| Subcontracting expenses | 1,519 | 1,459 | 1,354 | 1,311 | 1,444 | 1,542 | 1,804 | 1,791 |
| Other expenses (incl. impairment) | 2,539 | 2,594 | 2,828 | 2,606 | 2,754 | 2,922 | 2,920 | 3,302 |
| EBITDA (before other income) | 1,750 | 1,809 | 1,840 | 1,935 | 2,168 | 2,366 | 2,565 | 2,743 |
| Other income (incl. forex gain/loss) | 521.5 | 16.5 | 172.7 | 218.3 | 40.0 | -21.7 | -204.7 | -106.4 |
| Depreciation and amortisation | 469.8 | 458.8 | 462.1 | 458.1 | 468.7 | 473.7 | 481.1 | 478.6 |
| Exceptional items | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -272.4 | 0.00 | 0.00 |
| Share of profit/(loss) of associates/JVs | 0.60 | 6.60 | -1.20 | 0.50 | -2.80 | 0.90 | -0.10 | -4.30 |
| Profit attributable to non-controlling interests | 7.40 | 5.60 | -24.8 | -11.8 | 7.20 | -3.40 | 2.60 | 21.2 |
| Profit attributable to owners | 1,250 | 983.2 | 1,167 | 1,141 | 1,195 | 1,122 | 1,354 | 1,465 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 17.9% | 19.4% | -2.4% | 1.9% | 7.2% |
| EBITDA margin | 9.5% | 13.2% | 15.9% | ||
| Net margin | 4.5% | 8.0% | 8.5% | ||
| Return on equity | 8.6% | 15.7% | 16.9% | ||
| Return on capital employed | 26.1% | 21.2% | 11.0% | 21.3% | 24.0% |
| Return on assets | 5.3% | 9.7% | 10.3% | ||
| Net debt (₹ crore) | -5,984 | -6,964 | -8,371 | ||
| Net debt / EBITDA | -1.21x | -1.00x | -0.93x | ||
| Interest cover | 53.8x | 142.3x | 8.35x | 18.6x | 20.5x |
| Asset turnover | 1.06x | 1.17x | 1.16x | 1.21x | 1.21x |
| Receivable days | 98 | 56 | 50 | 45 | 48 |
| Inventory days (on revenue) | 0 | 0 | 0 | 0 | 1 |
| Payable days (on revenue) | 33 | 30 | 27 | 30 | 32 |
| Cash conversion | 2.70x | 1.36x | 1.28x | ||
| Capex intensity | 1.9% | 1.8% | 1.5% | 1.1% | 1.2% |
| Free cash flow (₹ crore) | 4,584 | 3,594 | 5,585 | 5,192 | 5,476 |
| Dividend payout | 166.1% | 90.4% | 83.7% | ||
| EPS, diluted (₹) | 62.81 | 54.54 | 26.58 | 47.91 | 54.19 |
| Book value per share (₹) | 311.5 | 321.9 | 300.6 | 308.3 | 333.6 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (revenue less employee, subcontracting, other expenses) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Net debt (borrowings - cash & bank - current investments); negative is net cash.
- Net debt / EBITDA: net debt / EBITDA (revenue less employee, subcontracting, other expenses).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS (INR)).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 12 Oct 2026); market data at the close of 12 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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- The 3-month view
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- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
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The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
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Prices are the last close on the NSE, 9 Oct 2026. Research from Mool’s report of 12 Oct 2026; page updated 12 Oct 2026.
Mool’s research is written by AI agents and published by Mool Capital Private Limited, a SEBI-registered Research Analyst, registration INH000012449, which is responsible for it. This page shows factual company information and an excerpt of that research; it carries no rating and is not investment advice for any individual. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Read the disclosures.