Tech Mahindra Limited

TECHM.NS

Information Technology Services · Technology

Price

₹1599.90

+15.90 (+1.00%)

Market Cap

₹1.57T

Exchange

National Stock Exchange of India

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 25, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Strong

Cash Flow

Weak

Stability

Good

Valuation

Strong

Dividends

Strong

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Winston Score History

The full picture

Tech Mahindra is an Indian IT services company that helps businesses with software development, consulting, and digital transformation. It serves industries like telecommunications, banking, healthcare, and manufacturing, working with large enterprises around the world. It is part of the Mahindra Group and is one of the largest IT services providers in India.

The company makes money by charging clients for technology projects, outsourced IT operations, and consulting engagements, typically through long-term contracts. It operates in over 90 countries, with major revenue coming from North America and Europe. Its deep expertise in the telecom sector gives it a strong niche, though heavy reliance on that industry is also a risk. Growth depends on expanding its digital, cloud, and AI service offerings while diversifying its client base beyond telecommunications.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+15.9% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

₹0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

45.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

₹87.0B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Tech Mahindra Limited is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 886.2M (2022) → 887.8M (2026)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

38.5%

Modest — 38.5% gross margin

Profit after running costs

Operating Margin

14.4%

Healthy — 14.4% operating margin

Return on the money invested

ROCE

37.2%

Exceptional — 37.2% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+11.0%

Steady sales growth (+11.0% YoY)

Profit growth

EPS YoY

+13.0%

Earnings growing (+13.0% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

Weak — only 0% of profit becomes cash

Spare cash per sale

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

30.20x

Comfortably covers interest (30.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

27.6x

Growth-priced — P/E 27.6

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+9.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (27.6 → 18.3)

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Dividends

Dividend

Dividend Yield

4.50%

Healthy income — 4.50% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

+6.7%

Dividend growing modestly (6.7% YoY)

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