Tech Mahindra Ltd.
NSE: TECHMTech Mahindra Ltd.: A 30-second snapshot
Tech Mahindra trades at Rs 1,635, up 14.11% over the past year and 22% over the past 3 months, sitting 9.52% below its 52-week high and above both its 50-day (Rs 1,487.94) and 200-day (Rs 1,465.92) moving averages. Its trailing PE of 28.25 is the highest among 6 tracked IT peers (range 14.91-26.45), while its quality score of 45 is the lowest in the same set. Q1 FY26 profit rose 28% YoY to Rs 1,465 crore, though results were characterized as below street estimates by NDTV Profit and Moneycontrol.
P/E
28.2
Forward P/E
18.8
ROE
—
Debt / Equity
7.27
Profit Margin
+8.7%
Div. Yield
+3.1%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
57/100
News
8 headlines · 1 positive · 3 negative
Tech Mahindra employee protests outside campus over alleged termination after availing leave to care for ailing daughter - The Hindu
The Hindu
Tech Mahindra Q1 Results: Profit Falls Short Of Street Estimates; Revenue Up 4% - NDTV Profit
NDTV Profit
Tech Mahindra Q1 results: Net profit rises 28% to Rs 1,465 crore, misses estimates - Moneycontrol.com
Moneycontrol.com
Tech Mahindra Launches Toronto Innovation Hub to Accelerate AI-led Enterprise Transformation in Canada - Mahindra
Mahindra
Tech Mahindra Merger Notice Accompanies 0.86% Intraday Gain - HDFC Sky
HDFC Sky
Recent context
- ·Q1 FY26 results (mid-July 2026): net profit up 28% YoY to Rs 1,465 crore on 4% revenue growth, characterized by NDTV Profit and Moneycontrol as short of street estimates.
- ·An employee protest was reported outside a Tech Mahindra campus in late July 2026 over an alleged termination linked to caregiving leave, per The Hindu.
- ·Tech Mahindra opened a Toronto innovation hub in early August 2026, and a merger notice accompanied a 0.86% intraday price move, per company and market reporting.
Strengths
- +Debt-to-equity of roughly 0.07x, on a falling trend.
- +Free cash flow positive in 4 of the last 5 tracked years.
- +Five-year revenue growth of 17.7% and earnings growth of 28.3%.
- +Price up 14.11% over 1 year and 22% over 3 months, trading above both the 50-day (Rs 1,487.94) and 200-day (Rs 1,465.92) moving averages.
Weaknesses
- −Trailing PE of 28.25 is the highest among the 6 tracked IT sector peers (range 14.91-26.45).
- −Quality score of 45 is the lowest among the same 6 peers (range 53-60), ranking last on both PE and quality score.
- −Profit margin of 8.68% and a consistency score of 41 sit toward the lower end of tracked metrics, and current-period ROE is not populated.
- −Q1 FY26 results were characterized as below street estimates by NDTV Profit and Moneycontrol despite 28% YoY profit growth to Rs 1,465 crore; overall news sentiment across 8 tracked headlines is net negative (3 negative, 4 neutral, 1 positive).
Open questions
- ?Does the premium PE of 28.25 relative to peers reflect an expectation of margin recovery, or does it primarily track broader IT-sector sentiment?
- ?How might the Q1 profit miss versus street estimates affect the trajectory of the consistency score (41) and quality score (45) in coming quarters?
- ?What would need to change in profit margin (currently 8.68%) for ROE to be reported consistently again in the current period?
- ?Does the falling debt-to-equity trend (currently around 0.07x) reflect a deliberate capital-allocation shift, and how does that align with the 3.12% dividend yield?
Peer comparison: IT
Ranks 6 of 6 on qualityTechnical state
Current price
₹1,635.00
SMA 50
₹1,487.94
SMA 200
₹1,465.92
RSI (14)
66.5 (neutral)
From 52w high
-9.5%
1Y return
+14.1%
3M return
+22.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumTECHM trades at a trailing PE of 28.25, the highest among the 6 tracked IT peers (range 14.91-26.45: WIPRO 14.91, INFY 15.27, TCS 17.82, HCLTECH 21.10, LTM 26.45), while its quality score of 45 is the lowest in the same set (peer range 53-60), ranking last (6 of 6) on both dimensions.
- lowQ1 FY26 results reported around 16 July 2026 showed profit up 28% YoY to Rs 1,465 crore but described as short of street estimates by NDTV Profit and Moneycontrol; across 8 tracked headlines, sentiment splits 3 negative, 4 neutral, 1 positive, with an overall label of negative.
- lowProfit margin of 8.68% and a consistency score of 41 sit toward the lower end of tracked metrics; current-period ROE is not populated even though persistence data records ROE above 15% in 3 of the tracked years, limiting direct benchmarking.
- low1-year price change is not populated for any of the 5 tracked IT sector peers (HCLTECH, INFY, TCS, WIPRO, LTM), limiting like-for-like comparison of TECHM's 14.11% 1-year price change against the sector.
Cross-section contradictions
- TECHM carries the highest trailing PE (28.25) among the 6 tracked IT peers (range 14.91-26.45) despite having the lowest quality score (45; peer range 53-60) in that same set.
- News sentiment across the 8 tracked headlines is net negative (3 negative vs 1 positive, overall label negative), driven partly by a Q1 profit miss vs street estimates, even as the stock is up 22% over the last 3 months and trades above both its 50-DMA and 200-DMA.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 9 Aug 2026 · rotates through NIFTY 500 every ~5 days