Technology · Information Technology Services · NSE · India
₹1790.00-2.14%
Market cap ₹1.75TNext earnings 2026-10-15Updated Oct 24, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionTech Mahindra Limited (TECHM.NS)
Fair value
Not available
ACCE price target
₹1784
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ₹1790 at the close on 23 Oct 2026, 12:00 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
76
out of 100
P/E
28.8x
forward 20.0x
1-year return
+22.3%
Dividend yield
2.79%
Tech Mahindra Limited in four questions
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Overview
ACCE thesis
Tech Mahindra is an Indian IT services firm whose core offerings are application development and maintenance, network and telecom engineering services for global carriers, and digital transformation work spanning cloud migration, SAP and ERP implementation, and analytics. Its edge is a deep telecom vertical, where it has long-standing relationships with operators and is a meaningful supplier of network software and 5G-related engineering, a niche most generalist Indian peers serve less directly. The near-term driver is the telecom and enterprise digital spend cycle, with 5G rollouts and AI-led modernisation projects feeding larger multi-year deals. The stock trades on 29.4 times trailing earnings but 20.5 times forward, implying the market expects earnings to grow substantially, and revenue growth of 15.6% with a 19.2% return on equity supports that expectation. Operating margin of 14.8% against a 36.4% gross margin leaves room for the deal-level profitability to be the swing factor worth testing.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Earnings miss in latest quarter
Q3 2026 EPS came in 4.0% below expectations, even though trailing earnings growth is +32.5% year on year. Quarterly delivery is softer than the headline trend suggests.
moderate
Price above ACCE target
At INR 1829.10 the stock trades 0.3% above the ACCE price target of ₹1784.00. The valuation cushion is thin on our numbers.
moderate
Weak long-run revenue growth
Five-year revenue CAGR is only +2.2% against +15.6% year on year, so the recent acceleration may not be durable. The 29.4 trailing P/E prices in a lot of that recovery.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Revenue grew 15.6% year over year in the latest filings, well above its 2.2% average over five years.
Free cash flow over the last twelve months reached INR 45.0B, and debt is small at 0.07 times equity.
The stock pays a 2.8% dividend yield, and its forward P/E of 20.5x is well below its trailing 29.4x.
Why it could disappoint
Earnings per share missed expectations by 4.0%, coming in at 17.84 against 18.59 expected.
The analysts' mean price target of INR 1750.74 sits 4.3% below the ₹1790.00 share price.
Net margin of 9.0% is thin, and the stock trades at a trailing P/E of 29.4x.
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