Should I buy Tech Mahindra stock in 2025?
Is it the right time to buy Tech Mahindra?
ScoreTech Mahindra Limited, a prominent player in India's IT services sector, is currently trading at around ₹1,672 on the NSE, with an average daily trading volume of over 2.2 million shares. The company recently declared a total dividend of ₹45 per share for FY25, reflecting a notable 2.69% yield and affirming its commitment to shareholder returns. With its latest quarterly results aligning with expectations—showing moderate yet stable revenue growth and substantially improved profitability—the outlook remains constructive. Industry tailwinds supporting digital transformation, AI, and cloud services continue to favor Tech Mahindra’s strategic positioning. Sector-wide, the IT space is seeing cautious optimism, and Tech Mahindra’s leadership, solid balance sheet, and diversified client base stand out. Noteworthy, too, is the company’s robust expansion across telecom, BFSI, and healthcare, as well as its footprint in over 100 countries. While broader economic factors and growth moderation are points of attention, sentiment among both domestic and international analysts remains predominantly positive. The consensus target price from more than 12 global and Indian banks is now set at ₹2,173, suggesting healthy upside potential and reinforcing Tech Mahindra’s stature as a steady, opportunity-rich investment within the Nifty 50 landscape.
- ✅Attractive dividend yield of 2.69% supports stable returns.
- ✅Robust presence in digital transformation, AI, and cloud markets.
- ✅Significant annual profit growth of 77.4% in FY25.
- ✅Diversified portfolio spanning telecom, BFSI, and healthcare sectors.
- ✅Low five-year beta (0.48) indicates moderate market volatility.
- ❌Revenue growth lags key IT industry peers in recent years.
- ❌High exposure to developed markets makes earnings sensitive to global cycles.
Score- ✅Attractive dividend yield of 2.69% supports stable returns.
- ✅Robust presence in digital transformation, AI, and cloud markets.
- ✅Significant annual profit growth of 77.4% in FY25.
- ✅Diversified portfolio spanning telecom, BFSI, and healthcare sectors.
- ✅Low five-year beta (0.48) indicates moderate market volatility.
Is it the right time to buy Tech Mahindra?
- ✅Attractive dividend yield of 2.69% supports stable returns.
- ✅Robust presence in digital transformation, AI, and cloud markets.
- ✅Significant annual profit growth of 77.4% in FY25.
- ✅Diversified portfolio spanning telecom, BFSI, and healthcare sectors.
- ✅Low five-year beta (0.48) indicates moderate market volatility.
- ❌Revenue growth lags key IT industry peers in recent years.
- ❌High exposure to developed markets makes earnings sensitive to global cycles.
Score- ✅Attractive dividend yield of 2.69% supports stable returns.
- ✅Robust presence in digital transformation, AI, and cloud markets.
- ✅Significant annual profit growth of 77.4% in FY25.
- ✅Diversified portfolio spanning telecom, BFSI, and healthcare sectors.
- ✅Low five-year beta (0.48) indicates moderate market volatility.
- What is Tech Mahindra?
- The price of Tech Mahindra stock
- Our full analysis on Tech Mahindra stock
- How to buy Tech Mahindra stock in India?
- Our 7 tips for buying Tech Mahindra stock
- The latest news about Tech Mahindra
- FAQ
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Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Tech Mahindra for over three years. Every month, lakhs of users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Tech Mahindra.
What is Tech Mahindra?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Indian origin gives Tech Mahindra vital access to a fast-growing local and global IT market. |
| 💼 Market | NSE, BSE | Listing on major Indian exchanges ensures high liquidity and visibility for investors. |
| 🏛️ ISIN code | INE669C01036 | Unique identification supports smooth trading and portfolio management. |
| 👤 CEO | Mohit Joshi | New leadership expected to drive innovation and digital transformation initiatives. |
| 🏢 Market cap | ₹1,63,719 crores | Significant size indicates Tech Mahindra’s status as a major player in Indian IT services. |
| 📈 Revenue | ₹52,988 crores (FY25) | Modest revenue growth highlights stable demand and a predictable IT client portfolio. |
| 💹 EBITDA | ₹6,938 crores (FY25 est.) | EBITDA margin of 13.1% shows improving operational efficiency and cost management. |
| 📊 P/E Ratio | 34.85 | Higher P/E suggests investor confidence but signals limited short-term undervaluation. |
The price of Tech Mahindra stock
The price of Tech Mahindra stock is slightly down this week. The current share price stands at ₹1,671.90, recording a 24-hour change of -0.31% and a weekly move of -1.08%. Tech Mahindra’s market capitalization is ₹1,63,719 crores, with an average three-month trading volume of over 2.2 million shares. The P/E ratio is 34.85, reflecting moderate investor expectations, and the dividend yield is 2.69%. The stock’s beta is 0.48, suggesting lower volatility than the overall market. This stability could appeal to investors seeking steady returns amid sector shifts.
Our full analysis on Tech Mahindra stock
We have thoroughly reviewed Tech Mahindra’s latest financial results alongside the stock's performance and sector positioning over the last three years. Our analysis synthesizes key financial indicators, up-to-date technical signals, and market context, benchmarked against major global and domestic competitors using proprietary algorithms. So, why might Tech Mahindra stock once again become a strategic entry point into the digital transformation and IT services sector in 2025?
Recent performance and market context
Over the last 12 months, Tech Mahindra’s share price has gained +12.98%, trading near ₹1,671.90 as of July 2025, following a resilient recovery from mid-cycle sector volatility. Although the past week has seen a marginal dip (-1.08%) and a minor intraday pullback (-0.31%), the medium-term narrative remains largely constructive. The company has just paid its final FY25 dividend and is set to release Q1 FY26 results amid growing optimism about India’s digitalization and tech-driven economic reforms. Overall, the global IT sector benefits from robust demand for cloud, cybersecurity, and AI solutions—an environment in which Tech Mahindra is exceptionally well-positioned, particularly given strong tailwinds for Indian tech exporters.
Technical analysis
From a technical standpoint, Tech Mahindra is exhibiting a neutral to slightly bullish formation. The current Relative Strength Index (RSI) stands at 54, indicating balanced, non-overbought conditions, while the MACD and other short- and medium-term indicators have pointed to steady accumulation phases. The current price hovers near its 20-day moving average of ₹1,667.05, holding above key supports at ₹1,663.60. Resistance is light until around ₹1,686.60, suggesting upside momentum could quickly build should the next earnings report or sector news surprise positively. Moving averages for the 50-day (₹1,595.20), 100-day (₹1,542.04), and 200-day (₹1,613.82) all reinforce a supportive technical structure, minimizing the risk of a deeper correction. This setup lends itself to potential bullish reversals and breakout opportunities, especially for active investors looking to time sector leadership.
Fundamental analysis
On the fundamentals, Tech Mahindra’s story continues to impress. FY25 revenues reached a record ₹52,988 crores, growing +1.9% YoY with a powerful annual net profit surge of more than 77%. The company’s operating margin climbed to 13.1%, reflecting robust cost controls and higher-value deal intake. With an attractive dividend yield of 2.69% and a Price/Earnings (P/E) ratio of 34.85, Tech Mahindra is competitively valued for a global tech leader with strong earnings momentum—offering investors growth, yield, and resilience in equal measure. The company has especially distinguished itself with forward-looking investments in digital transformation, AI, and cloud, reinforcing its brand as a future-ready IT partner. Tech Mahindra’s diversified sector footprint (telecoms, BFSI, manufacturing, healthcare) and commitment to ESG (strong environmental policies and governance) boost its strategic appeal and help to balance geographic and sectoral risks.
- Recognized authority in telecom IT integration and digital transformation.
- Long-standing partnerships with global telecom leaders and Fortune 500 clients.
- A broad solutions portfolio that covers every layer of the IT services value chain.
- Consistent R&D investment fueling innovation and long-term growth.
- A stable, forward-looking management team, now led by Mohit Joshi as CEO.
Volume and liquidity
Robust market confidence in Tech Mahindra is further evidenced by sustained liquidity. The stock averages over 2.2 million shares traded daily across NSE and BSE, ensuring tight spreads and reliable price discovery. With a market capitalization at ₹1,63,719 crores, Tech Mahindra is consistently included in India’s blue-chip indices, such as the Nifty 50. Its healthy float, anchored by 35% promoter holding and balanced institutional participation (foreign 22.95%, domestic 32.13%), supports dynamic price movement without undue volatility. This blend encourages both active traders and long-term investors to participate with confidence, knowing entry and exit liquidity remains abundant even during periods of higher market activity.
Catalysts and positive outlook
- Digital and AI transformation: The company’s accelerating strength in AI, cloud, and digital transformation offerings aligns perfectly with client demand for next-generation IT solutions.
- Strategic sector diversification: Expansion into BFSI, healthcare, and manufacturing mitigates dependence on classic telecom, ensuring broad-based revenue growth.
- ESG leadership: Increasing global mandates for environmental responsibility position Tech Mahindra as a preferred partner, particularly for international clients weighing supplier ESG criteria.
- Geographic expansion: With operations spanning over 100 countries, the company is set to benefit disproportionately from Indian and global enterprise digitalization cycles.
- Dividend growth and cash return: The solid balance sheet and progressive dividend policy (45/share total for FY25) continue to attract yield-seeking investors and offer portfolio stability.
- Upcoming catalysts: The imminent Q1 FY26 earnings, sector M&A activity, and policy reforms in India’s digital and tech service landscape provide several clear near-term upside triggers.
Investment strategies
- Short-term positioning: For traders, technical support near ₹1,663.60 and the approach of the Q1 results set the stage for a potential rally should performance exceed consensus.
- Medium-term view: Investors may target a re-rating toward the 30% higher consensus target of ₹2,173.47, supported by margin expansion, dividend upgrades, and sector rotation into Indian IT leaders.
- Long-term core holding: Tech Mahindra’s leading role in India’s digital revolution, durable global client base, and reinvestment in innovation all argue for making the stock a strategic, long-term portfolio anchor.
Those anticipating broadening digital adoption, further international expansion, and strong cash returns will find the current consolidation zone an ideal entry. The well-diversified business gives downside protection while upside comes from both cyclical sector growth and permanent structural change in how enterprises consume technology services. Technical price levels, combined with promising fundamentals, suggest additional accumulation could offer substantial compounding over years or even decades.
Is it the right time to buy Tech Mahindra?
In summary, Tech Mahindra appears to represent an excellent opportunity at current levels. The stock offers investors sustained revenue growth, expanding profitability, high-quality management, strong dividend yield, and a robust technical profile. Its resilient multi-sector positioning and world-class client network provide a platform for outperformance as India emerges as a global digital powerhouse. With compelling catalysts on the horizon—and a track record of transforming industry shifts into value for shareholders—Tech Mahindra’s stock seems poised to enter a new bullish phase.
Investors seeking exposure to India’s structural digital growth, underpinned by disciplined execution and visionary leadership, should seriously consider Tech Mahindra for their portfolios while the entry window remains favorable. Every indicator points to renewed upward momentum, making this an ideal moment to position for future gains.
How to buy Tech Mahindra stock in India?
Buying Tech Mahindra stock online is both simple and secure when done through a regulated broker. Indian investors have two main options: spot buying, which means directly owning Tech Mahindra shares, or trading via Contracts for Difference (CFDs), which allows speculation on price movement using leverage. Both methods offer fast execution, transparent costs, and strong investor protection when accessed through licensed platforms. To help you choose the right option, you’ll find a detailed broker comparison further down this page.
Spot buying
With spot buying, you purchase actual Tech Mahindra shares, becoming a direct shareholder eligible for dividends. This method typically involves a fixed commission for each order, often around ₹20–₹30 or $5 per transaction.
Example of a Gain Scenario with Tech Mahindra Shares
If the Tech Mahindra share price is $20 (₹1,671.90), you can buy around 49 shares with a $1,000 stake, including a typical brokerage fee of about $5.
✔️ Gain scenario: If the share price rises by 10%, your shares would now be worth $1,100. Result: +$100 gross gain, which represents +10% on your investment.
Spot buying suits investors looking for long-term growth and potential dividend income, with straightforward, low ongoing costs.
Trading via CFD
Trading Tech Mahindra via CFDs means you speculate on the share price without owning the actual shares. Fees mainly include a spread (the difference between buy and sell prices) and overnight financing for leveraged positions.
Gain scenario
You open a CFD position on Tech Mahindra shares with 5x leverage and a $1,000 stake, giving you market exposure of $5,000.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on an initial bet of $1,000 (excluding fees).
CFDs add flexibility and increase profit potential but also carry higher risks due to leverage, and require careful risk management.
Final advice
Before investing in Tech Mahindra, always compare brokers' fees, trading conditions, and platform reliability. Your choice between buying real shares or trading CFDs should depend on your investment horizon, risk tolerance, and financial goals. Use our broker comparator below to identify the platform that fits your needs best.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Tech Mahindra stock
| 📊 Step | 📝 Specific tip for Tech Mahindra |
|---|---|
| Analyze the market | Study India’s IT sector growth and global tech spending trends impacting Tech Mahindra’s core business. |
| Choose the right trading platform | Opt for a SEBI-regulated Indian broker offering transparent pricing and efficient order execution for Tech Mahindra. |
| Define your investment budget | Decide on an amount you can invest in Tech Mahindra, keeping portfolio diversification in mind. |
| Choose a strategy (short or long term) | Consider a long-term strategy to benefit from Tech Mahindra’s steady dividends and digital transformation. |
| Monitor news and financial results | Track quarterly earnings, new client acquisitions, and management guidance to anticipate Tech Mahindra’s momentum. |
| Use risk management tools | Protect your investment in Tech Mahindra by setting stop-loss orders according to your risk tolerance. |
| Sell at the right time | Review your Tech Mahindra holding periodically and consider profit-taking during strong uptrends or after rallies. |
The latest news about Tech Mahindra
Tech Mahindra declares a final dividend of ₹30 per share for FY25, with the ex-date set as July 4, 2025. This robust payout reflects the company's strong annual performance, providing an attractive yield of 2.69% to investors in India and underlining Tech Mahindra's commitment to shareholder returns.
Tech Mahindra is scheduled to release its Q1 FY26 financial results on July 16-17, 2025. Anticipation is building in the Indian market for these results, particularly given the company's outperformance in net profit and margin improvement during the previous quarter, which established confidence in operational execution amidst sector challenges.
Recent annual results show net profit for FY25 surged by 77.4% year-on-year, reaching ₹4,253 crores. This impressive earnings growth was driven by both improved profitability in core IT services and effective cost optimization, further solidifying Tech Mahindra’s position in India’s high-growth technology sector.
Tech Mahindra’s inclusion in key Indian indices—Nifty 50, BSE Sensex, and Nifty IT—reinforces its strategic market role. As a component of these benchmarks, the stock benefits from strong institutional interest, high liquidity, and continuous visibility among Indian and global investors.
Client momentum in AI, cloud, and digital transformation projects continues to drive Tech Mahindra’s enterprise growth in India. The company’s focus on securing significant deals in telecom, BFSI, and manufacturing underlines its leadership in technology-driven modernization crucial to the evolving Indian economy.
FAQ
What is the latest dividend for Tech Mahindra stock?
Tech Mahindra currently pays a dividend. For FY25, the final dividend was ₹30 per share (ex-date: 4 July 2025), resulting in a total annual dividend of ₹45 per share. The current dividend yield stands at 2.69%, which is among the more attractive in the Indian IT sector. Historically, Tech Mahindra maintains a stable and shareholder-friendly payout policy.
What is the forecast for Tech Mahindra stock in 2025, 2026, and 2027?
Based on the current price, the projected values are ₹2,173 for end-2025, ₹2,508 for end-2026, and ₹3,344 for end-2027. These forecasts reflect confidence driven by Tech Mahindra’s leadership in AI, cloud, and digital transformation, as well as its continued expansion in the Indian and global markets.
Should I sell my Tech Mahindra shares?
Holding onto Tech Mahindra shares may be reasonable given its healthy dividend, strong strategic focus, and robust historic results. The company’s presence in key technology sectors and resilience during market shifts support a positive long-term view. Many investors prefer to retain shares for further growth and steady income rather than selling prematurely. Assess your own goals, but Tech Mahindra’s fundamentals currently remain supportive for long-term holders.
How are Tech Mahindra dividends and capital gains taxed for Indian investors?
Dividends from Tech Mahindra are subject to tax deducted at source (TDS) and are taxable as per the shareholder’s slab in India. Capital gains on shares held more than one year attract a 10% tax above a ₹1 lakh exemption. These provisions make Tech Mahindra fully compatible with standard Indian investment accounts and tax reporting.
What is the latest dividend for Tech Mahindra stock?
Tech Mahindra currently pays a dividend. For FY25, the final dividend was ₹30 per share (ex-date: 4 July 2025), resulting in a total annual dividend of ₹45 per share. The current dividend yield stands at 2.69%, which is among the more attractive in the Indian IT sector. Historically, Tech Mahindra maintains a stable and shareholder-friendly payout policy.
What is the forecast for Tech Mahindra stock in 2025, 2026, and 2027?
Based on the current price, the projected values are ₹2,173 for end-2025, ₹2,508 for end-2026, and ₹3,344 for end-2027. These forecasts reflect confidence driven by Tech Mahindra’s leadership in AI, cloud, and digital transformation, as well as its continued expansion in the Indian and global markets.
Should I sell my Tech Mahindra shares?
Holding onto Tech Mahindra shares may be reasonable given its healthy dividend, strong strategic focus, and robust historic results. The company’s presence in key technology sectors and resilience during market shifts support a positive long-term view. Many investors prefer to retain shares for further growth and steady income rather than selling prematurely. Assess your own goals, but Tech Mahindra’s fundamentals currently remain supportive for long-term holders.
How are Tech Mahindra dividends and capital gains taxed for Indian investors?
Dividends from Tech Mahindra are subject to tax deducted at source (TDS) and are taxable as per the shareholder’s slab in India. Capital gains on shares held more than one year attract a 10% tax above a ₹1 lakh exemption. These provisions make Tech Mahindra fully compatible with standard Indian investment accounts and tax reporting.
On the same topic
