TECHM
Large CapTech Mahindra Limited
IT
Tech Mahindra is an Indian IT services and consulting company, part of the Mahindra Group. It focuses on digital transformation, AI-led delivery models, and high-growth services across industries like Manufacturing, BFSI, and Communications, with a strategic roadmap for revenue growth and margin expansion.
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 argues for patience, 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 31 Mar 2026
Good · 60/100Rev +13% YoY · PAT +19% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹15,076 Cr | +12.6% | +4.8% |
| EBITDA | ₹2,565 Cr | +39.5% | +8.4% |
| Operating margin | 17.0% | +300 bps | +100 bps |
| PAT | ₹1,356 Cr | +18.7% | +21.2% |
| PAT margin | 9.0% | +46 bps | +122 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Tech Mahindra reported sustained margin growth in FY26, with Q4 FY26 EBIT at 13.8% and LTM deal wins reaching $3.8 Bn, despite flattish overall revenue growth. The company achieved industry-leading NPS and strong FCF generation.
The company is in a stabilization phase, showing tangible progress on margin expansion through Project Fortius and increased deal wins. Investments in AI and high-growth services are strategic, but revenue growth remains a key area to monitor for the "reaping returns" phase in FY27.
AI-Led Transformation
Deep AI first offerings in DEA, Network Services, Engineering Service; Leader in Gartner EMQ for GenAI Consulting & Implementation Services; ~95% accounts have AI embedded.
Turbocharge Program
$20Mn+ accounts reached quarterly run rate of $1 Billion and growth higher than company average.
Large Deal Focus
$6Bn+ large deal wins over 7 quarters, including Mega Deals (>$500 Mn), with an AI-led transition framework.
High Growth Service Lines
Focus on D&A (shifting to "Data for AI"), Consulting, Engineering, Cloud, and Design Services (BORN).
AI Adoption
Winners across industries are embracing a new mindset with AI, driving demand for AI-led delivery models.
Digital Transformation Demand
The shift from Y2K to AI represents a "Full Circle Moment" for modernization and digital transformation.
Macro-economic Challenges
Management acknowledges making transformation progress "even amidst macroeconomic challenges."
Regulatory Changes
Identified as a changing marketplace factor, specifically mentioning H-1B visa regulations.
Cybersecurity Risks
Identified as a changing marketplace factor.
Rise of GCCs in India
Identified as a changing marketplace factor, potentially increasing competition for talent and projects.
Volatility in Tech Disruption
Nasdaq 100 volatility across tech disruption eras (1998-2026) shows boom-bust cycles with higher peaks.
Execution of AI-led Delivery Model
Shifting from reactive to proactive, AI-driven model requires successful implementation of new tools and commercial models like Vector Squads and Service Tokens.
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.
QoQ comparison is crucial for tracking sequential momentum in EBIT and ROCE, reflecting the impact of Project Fortius and operational rigor. YoY comparison is important for revenue growth, which has shown improvement over the last year, and for annual KPIs like FCF and deal wins.
LTM Deal Wins
$3.8 Bn (Q4 FY26), up from $2.68 Bn (Q4 FY25).
Q4 FY26 EBIT %
13.8%, showing consistent QoQ improvement from 10.5% in Q4 FY25.
FY26 Reported EBIT %
12.6%, up from 6.1% in FY25.
Q4 FY26 Revenue CC Growth (YoY)
2.4%, improving from -1.0% in Q1 FY26.
FY27 Financial Targets
Topline growth > Peer average, Industry standard margins (15% EBIT), ROCE > 30%, Capital Return > 85% of FCF.
Strategic Roadmap
FY26 is a "Stabilization phase" with continued investments and cost savings, leading to "Reaping returns" in FY27.
Investment Focus
Consulting and Gen AI are significant areas of investment, including inorganic tuck-in acquisitions, LLMs, AI platforms, and an AI-first workforce.
Operational Discipline
Project Fortius moved TechM to structured productivity and margin discipline, anchored in utilization rigor, delivery governance, and pricing control.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth (YoY CC) | 2.4% in Q4 FY26 | Acceleration towards "Topline growth > Peer average" target in FY27. |
| EBIT Margin | 13.8% in Q4 FY26 | Continued expansion towards the 15% target for FY27. |
| Return on Capital Employed (ROCE) | 26.20% in Q4 FY26 | Progress towards the >30% target for FY27. |
| Large Deal Wins | $3.8 Bn (LTM Q4 FY26) | Sustained momentum and ramp-up of large deal wins, especially mega deals. |
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
44NeutralSMA20 -4.1% / mo
Technical chart
TECHMdaily · 3Y+5.4%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 53.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 53 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 20% off 52W high · 14% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.9%.
- Piotroski is strong at 8/9.
- Balance sheet contributes 12/15 to the score.
Main drags
- Fair-value margin of safety is negative at -214.1%.
- Valuation is weaker at 3/30; 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
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 90th 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: 90th pctile, median 68 · Large: 81st pctile, median 74
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 3.9%.
- ▸12 years of positive FCF.
- ▸Debt/equity is 0.07.
Trust risks
- ▸No major Trust Lite risk flags.
Intrinsic value
Fundamentals
Valuation
- P/E
- 29.50
- P/B
- 4.98
- EV/EBITDA
- 13.70
- Market Cap
- 147326.00Cr
Profitability
- ROE
- 17.60%
- ROCE
- 23.10%
- ROA
- 9.73%
- Dividend Y
- 3.39%
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
- 26.80×
- Altman Z
- 7.27
- Book Value
- 302.00
Cash Flow
- FCF Yield
- 3.91%
- FCF Positive Y
- 12/5
- OCF
- 6172.00 Cr
- EPS TTM
- 49.10
Shareholding
- Promoter Hold
- 34.97%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 36%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.