Tech Mahindra Ltd(TECHM)

NSE: TECHMBSE: 532755

₹ 1,778-1.11%refreshed 27 Oct, 11:14 am ISTMarket cap: ₹ 1.74 L crWebsite: www.techmahindra.comUpdated: 27 Oct 2026

About

Tech Mahindra is an Indian IT services and business process services company, part of the Mahindra Group, providing consulting, IT, enterprise applications, engineering, network, AI and analytics, and cloud and infrastructure services. As of FY25 it had 148,000+ professionals across 90+ countries serving 1,100+ clients, with telecommunications its largest revenue driver. In Q2 FY27 USD revenue was $1,693 mn, up 7.2% YoY in constant currency, with Communications at 33.5% of the mix.^[1][2]

Business segments

IT services contributed 84.1% of revenue (Rs 47,767 Cr) in FY26, with an EBIT margin of 19.9%.^[3]
Business process services (BPS) contributed 15.9% of revenue (Rs 9,048.4 Cr) in FY26, with an EBIT margin of 16.6%.^[3]
IT segment revenue share declined 8.7 percentage points over the FY2018-FY2026 window as BPS grew its share of the mix.^[3]

Services and platforms

Services span consulting, IT, enterprise applications, business process services, engineering, network services, customer experience and design, AI and analytics, and cloud and infrastructure (FY25).^[1]
In Q2 FY27 the company launched Zero Gravity Telco Architecture, the Indus Terra LLM and CAX Studio.^[2]
TechM Helix is the enterprise AI transformation platform; over 350 deployable AI agents had been built as of Q1 FY27.^[4]
TechM Orion, an agentic AI platform built on Nvidia accelerated computing, was launched in Q2 FY26 and is listed on hyperscaler marketplaces.^[5]
Project Indus, TechM's own large language model, covers Hindi and its 37+ dialects (FY25).^[1]
70% of eligible developers were enabled with an AI pair programmer and 65%+ associates certified on AI belts as of Q1 FY27.^[4]

Operations and delivery

The company ran 136 offices and 44 development centres across 90+ countries as of FY25.^[1]
IT headcount offshoring was 76.7% in FY25.^[1]
IT headcount was 76,617 in Q2 FY27, up 1,928 QoQ; total headcount was 152,206.^[2]
LTM IT attrition was 11.7% in Q2 FY27, vs 11.8% in Q1 FY27 and 12.8% in Q2 FY26.^[2][4]
IT utilisation was 87.0% in Q1 FY27, up from 86.6% in Q3 FY26 and 84.4% in Q2 FY26.^[4]
Q2 FY27 revenue grew 2.4% QoQ and 7.2% YoY in constant currency (2.0% QoQ and 6.8% YoY reported), vs 6.6% YoY constant currency in Q1 FY27.^[2][4]
DSO was 88 days in Q2 FY27, down from 94 days a year earlier.^[2]

Vertical and geographic mix

Communications, 33.5% of revenue in Q2 FY27, grew 6.0% QoQ and 9.5% YoY; it had declined 5% in USD terms in FY25.^[2][6]
In Q2 FY27 Retail/Logistics grew 9.6% QoQ, while Manufacturing fell 3.9% QoQ after growing 17.2% YoY in Q1 FY27.^[2][4]
BFSI grew 8.1% YoY in Q1 FY27; full-year FY26 BFSI growth was 3.7% YoY.^[4]
Hi-Tech declined 2.7% in FY26 on a semiconductor client restructuring, but grew 6.6% YoY in Q4 FY26.^[7]
Europe was the strongest geography in FY26, growing 8.9% YoY.^[7]
Exports made up 93.3% of the company's total turnover in FY25.^[1]

Deal wins

Q2 FY27 deal TCV was $1,023 mn, up 25.4% YoY, the fourth straight quarter above $1 billion; Q1 FY27 TCV was $1,078 mn.^[2][4]
LTM deal wins reached $4,270 mn in Q2 FY27, up 34.8% YoY, vs $4,063 mn in Q1 FY27.^[2][4]
FY26 TCV was $3,794 mn, up 41.6% YoY, vs US$2.7 Bn in FY25.^[4]
A mega deal with a leading European telco, TCV over $500 mn across five years, was won in Q3 FY26; ramp expected in H1 FY27.^[6]

Clients and partners

$50 mn+ clients numbered 33 in Q2 FY27, up 7 YoY; $20 mn+ clients numbered 66, up 3 YoY.^[2]
Top-20 client revenue concentration was 37.3% in Q1 FY27 vs 39.0% a year ago.^[4]
In Q2 FY27 TechM announced a partnership with SpaceXAI for a global AI-powered software engineering practice, plus partnerships with Google Cloud, ServiceNow, Cisco, Wandelbots, Rezolve Ai and Uniphore.^[2]
Many client relationships span 10 to 20+ years; long-standing partners include Microsoft, Google Cloud and Cisco (FY25).^[1]

Margin programme

EBIT margin was 14.8% in Q2 FY27, up about 260 bps YoY and the 12th straight quarter of expansion, from 6.4% at the start of the transformation.^[2][4]
Project Fortius, the operations transformation programme, delivered estimated average annual cost savings of US$250 Mn (FY25).^[1]
FY27 EBIT margin target of 15% reaffirmed in Q1 FY27, with Q4 FY27 exit rate targeted above 15%; wage hike phased from Q2 FY27.^[4]

Recent developments

In Q2 FY27 the board recommended a 1:1 bonus issue, subject to postal ballot, with shares to be credited by 15 Dec 2026.^[2]
In Q2 FY27 TechM bought the remaining 20% of Tech Mahindra Arabia for SAR 83.7 mn (Rs 2,148 mn) and 100% of Alyis Serviços Técnicos for BRL 1.2 mn.^[2]
In Q1 FY27, TechM acquired an 85% stake in Avant Techno Solutions (Canada) for CAD 27.26 mn to add payments modernisation and wealth platform capabilities.^[4]
In Q4 FY26, TechM entered a five-year global AI-led transformation partnership with Orange Business.^[7]
Front and middle office integration of acquired portfolio companies was complete as of Q4 FY26; backend integration expected to conclude in FY27.^[7]

Market Cap

₹1,74,272 Cr

High / Low

₹1,850 / 1,304

Stock P/E

31.7

Price / Book

5.9

Book Value

₹302

EPS

₹49.1

No. of Shares

97.98 Cr

ROCE

23.1%

ROE

16.9%

OPM

12.6%

Debt / Equity

0.07

Sales

₹56,815 Cr

Net Profit

₹4,806 Cr

Promoter holding

35.0%

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Tech Mahindra Ltd(TECHM)

About

Business segments

Services and platforms

Operations and delivery

Vertical and geographic mix

Deal wins

Clients and partners

Margin programme

Recent developments

Signal history

The analysis Screener can't give you

AI Deep Dive

Verdict

Company data

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