Tech MahindraNSE:TECHM -1.68%78 Operating Margin % is 13.82% as of Mar. 2026, which is 13% above its 10-year median of 12.22. GuruFocus rates NSE:TECHM with a GF Score™ of 78/100 and a GF Value™ of ₹1,562.07 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,820 Software companies, Tech Mahindra ranks better than 75.96% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Tech Mahindra's Operating Income for the
three
months ended in Mar. 2026 was ₹20,842 Mil. Tech Mahindra's Revenue for the
three
months ended in Mar. 2026 was ₹150,761 Mil. Therefore, Tech Mahindra's Operating Margin % for the quarter that ended in Mar. 2026 was 13.82%.
Warning Sign:
Tech Mahindra Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.8%.
The historical rank and industry rank for Tech Mahindra's Operating Margin % or its related term are showing as below:
NSE:TECHM'
s Operating Margin % Range Over the Past 10 Years
Min: 6.58 Med: 12.22 Max: 15.48
Current: 12.59
NSE:TECHM's Operating Margin % is ranked better than 75.96% of 2820
companies
in the Software industry
Industry Median: 3.865
vs NSE:TECHM: 12.59
Tech Mahindra's 5-Year Average Operating Margin % Growth Rate was -6.80% per year.
Tech Mahindra's Operating Income for the
three
months ended in Mar. 2026 was ₹20,842 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹71,525 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Tech Mahindra Operating Margin % Related Terms
Tech Mahindra Operating Margin % Historical Data
* Premium members only.
The historical data trend for Tech Mahindra's Operating Margin % 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.
NSE:TECHM vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Tech Mahindra's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Tech Mahindra's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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 Operating Margin % of 13.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tech Mahindra and its competitors. This is 13% above median its historical median of 12.22. Over the past decade, Tech Mahindra's Operating Margin % has ranged from 6.58 to 15.48. According to the industry distribution chart, Tech Mahindra ranks #678 out of 2820 companies in the Software industry, placing it in the top 24%.
Is Tech Mahindra's Operating Margin % too high?
Tech Mahindra's current Operating Margin % of 13.82% is 13% above median its 10-year median of 12.22. Over the past 10 years, this metric has ranged from a low of 6.58 to a high of 15.48. The Software industry median Operating Margin % is 3.87. Tech Mahindra's value of 13.82% is 257.6% above this industry median. Based on the distribution chart, Tech Mahindra ranks #678 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tech Mahindra has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #678 out of 2820 companies for Operating Margin %. This places Tech Mahindra in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Tech Mahindra's value of 13.82% is 257.6% above this benchmark. Historically, Tech Mahindra's own Operating Margin % has ranged from 6.58 to 15.48 over the past decade. While the company's 10-year median is 12.22 vs. the industry median of 3.87, Tech Mahindra has consistently been above 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 Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current Operating Margin % of 13.82% is 257.6% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Tech Mahindra and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current Operating Margin % is 13.82%, which is 13% above median its own 10-year median of 12.22. 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 ₹1,562.07, compared to a current price of ₹1,437.10 — trading 8% below its estimated fair value. The current Operating Margin % is 13.82%, which is 13% above median its 10-year median of 12.22 and 257.6% above the Software industry median of 3.87. Tech Mahindra's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current Operating Margin % is 13.82% as of Mar. 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 ₹1,437.10 is trading 8% below its estimated GF Value™ of ₹1,562.07.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
Operating Margin %: 13.82% (13% above median its 10-year median of 12.22)
GF Value™: ₹1,562.07 vs. price of ₹1,437.10 (8% below fair value)
Industry Position: 257.6% above the Software median (#678 of 2820)
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.
78GF Score
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