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Tech MahindraNSE:TECHM +4.14%82 Interest Coverage is 20.34 as of Jun. 2026, which is 12% below its 10-year median of 23.18. GuruFocus rates NSE:TECHM with a GF Score™ of 82/100 and a GF Value™ of ₹1,605.62 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,714 Software companies, Tech Mahindra ranks worse than 52.57% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Tech Mahindra's
Operating Income
for the
three
months ended in Jun. 2026 was ₹22,639 Mil. Tech Mahindra's Interest Expense for the
three
months ended in Jun. 2026 was ₹-1,113 Mil.
Tech Mahindra's interest coverage for the quarter that ended in Jun. 2026 was 20.34.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tech Mahindra's Interest Coverage or its related term are showing as below:
NSE:TECHM'
s Interest Coverage Range Over the Past 10 Years
Min: 8.73 Med: 23.18 Max: 40.38
Current: 21.41
NSE:TECHM's Interest Coverage is ranked worse than 52.57% of 1714
companies
in the Software industry
Industry Median: 24.61
vs NSE:TECHM: 21.41
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Tech Mahindra Interest Coverage Related Terms
Tech Mahindra Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tech Mahindra's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NSE:TECHM vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Tech Mahindra's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tech Mahindra Interest Coverage vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tech Mahindra (NSE:TECHM) has a Interest Coverage of 20.34 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tech Mahindra and its competitors. This is 12% below median its historical median of 23.18. Over the past decade, Tech Mahindra's Interest Coverage has ranged from 8.73 to 40.38. According to the industry distribution chart, Tech Mahindra ranks #901 out of 1714 companies in the Software industry, placing it in the top 52.6%.
Is Tech Mahindra's Interest Coverage too high?
Tech Mahindra's current Interest Coverage of 20.34 is 12% below median its 10-year median of 23.18. Over the past 10 years, this metric has ranged from a low of 8.73 to a high of 40.38. The Software industry median Interest Coverage is 24.61. Tech Mahindra's value of 20.34 is 17.4% below this industry median. Based on the distribution chart, Tech Mahindra ranks #901 out of 1714 companies in the Software industry, which is below the industry midpoint. Overall, Tech Mahindra has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #901 out of 1714 companies for Interest Coverage. This places Tech Mahindra in the lower half of its industry. The industry median Interest Coverage is 24.61. Tech Mahindra's value of 20.34 is 17.4% below this benchmark. Historically, Tech Mahindra's own Interest Coverage has ranged from 8.73 to 40.38 over the past decade. While the company's 10-year median is 23.18 vs. the industry median of 24.61, Tech Mahindra has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.61, based on 1,714 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current Interest Coverage of 20.34 is 17.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tech Mahindra and its competitors. For the Software industry, the median Interest Coverage is 24.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current Interest Coverage is 20.34, which is 12% below median its own 10-year median of 23.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tech Mahindra stock overvalued right now?
Based on GuruFocus' analysis, Tech Mahindra (NSE:TECHM) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,605.62, compared to a current price of ₹1,572.90 — trading 2% below its estimated fair value. The current Interest Coverage is 20.34, which is 12% below median its 10-year median of 23.18 and 17.4% below the Software industry median of 24.61. Tech Mahindra's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current Interest Coverage is 20.34 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tech Mahindra (NSE:TECHM) Overvalued in 2026?
Based on GuruFocus' analysis, Tech Mahindra stock appears to be undervalued.
The current stock price of ₹1,572.90 is trading 2% below its estimated GF Value™ of ₹1,605.62.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
Interest Coverage: 20.34 (12% below median its 10-year median of 23.18)
GF Value™: ₹1,605.62 vs. price of ₹1,572.90 (2% below fair value)
Industry Position: 17.4% below the Software median (#901 of 1714)
No single metric tells the full story. See the NSE:TECHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tech Mahindra Ltd is an IT services and consulting company in India. It offers a variety of technology solutions and services in addition to business process services. Its segments are Information Technology and Business Process Services. The technology solutions include helping companies engage in cloud software, mobile solutions, network services, cybersecurity, and a variety of other options. The business process service is offered across various industries including telecom, financial services, retail, energy, hospitality, high-tech, agriculture, and food beverage. The company generates the majority of its revenue from Communications & Media & Entertainment Industry. Geographically the company generates the majority of its revenue from the Americas.
82GF Score
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