Tech Mahindra Limited (TECHM.BO) stock analysis

In our weekly check, Tech Mahindra Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5.

About Tech Mahindra Limited

Tech Mahindra Limited is a Technology company (Information Technology Services) based in India, listed on BSE as TECHM.BO.

What our checks show for TECHM.BO

Red flags

• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The net margin fell by 4 points over 5 years, to 8.5%: the company keeps less of each sale as profit.
• The dividend takes 7943% of profit: little cushion if profit falls.
• The stock has fallen as much as 89% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.2 years.

Warning signs

• Revenue grew only 2.2% a year over the last 3 years.
• Earnings per share fell 0.3% a year over the last 3 years.
• Net profit fell 0.1% a year over the last 3 years.
• The net margin is only 8.5%: little room if costs rise.
• Thinly traded (about 135 thousand shares a day): buying and selling can move the price.

Strengths

• Debt is low: 0.07x equity.
• The gross margin is 35.6% and has risen by 5.8 points: pricing power is holding.
• Operating cash flow is 1.28x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 22.3% a year over the next years.
• Analysts expect the net margin to improve by 3.4 points from today's 8.5%.
• A large company: market value $16.7 billion.

Next earnings report: 2027-01-22

Similar companies

4307.T · HCLTECH.NS · 6701.T · 6702.T · TCS.BO · IBM

Questions

What grade does Tech Mahindra Limited (TECHM.BO) have?

In our weekly check, Tech Mahindra Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TECHM.BO stock?

This week's biggest flags for Tech Mahindra Limited: Weak interest cover, Margins falling, Dividend stretched. In total 10 of 25 checks show a warning or a red flag.

What does Tech Mahindra Limited do?

Tech Mahindra Limited is a Technology company (Information Technology Services) based in India, listed on BSE as TECHM.BO.

When does Tech Mahindra Limited report earnings next?

The next earnings report is expected on 2027-01-22. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis