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Tech MahindraNSE:TECHM +1.51%77 Return-on-Tangible-Asset is 15.05% as of Jun. 2026, which is 14% above its 10-year median of 13.20. GuruFocus rates NSE:TECHM with a GF Score™ of 77/100 and a GF Value™ of ₹1,617.28 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,893 Software companies, Tech Mahindra ranks better than 85.03% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Tech Mahindra's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹58,604 Mil. Tech Mahindra's average total tangible assets for the quarter that ended in Jun. 2026 was ₹389,435 Mil. Therefore, Tech Mahindra's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 15.05%.
The historical rank and industry rank for Tech Mahindra's Return-on-Tangible-Asset or its related term are showing as below:
NSE:TECHM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.9 Med: 13.2 Max: 16.37
Current: 14.12
During the past 13 years, Tech Mahindra's highest Return-on-Tangible-Asset was 16.37%. The lowest was 6.90%. And the median was 13.20%.
NSE:TECHM's Return-on-Tangible-Asset is ranked better than 85.03% of 2893
companies
in the Software industry
Industry Median: 2.07
vs NSE:TECHM: 14.12
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Tech Mahindra Return-on-Tangible-Asset Related Terms
Tech Mahindra Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Tech Mahindra's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, Tech Mahindra's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 15.05% mean?
Tech Mahindra (NSE:TECHM) has a Return-on-Tangible-Asset of 15.05% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Tech Mahindra and its competitors. This is 14% above median its historical median of 13.20. Over the past decade, Tech Mahindra's Return-on-Tangible-Asset has ranged from 6.90 to 16.37. According to the industry distribution chart, Tech Mahindra ranks #433 out of 2893 companies in the Software industry, placing it in the top 15%.
Is Tech Mahindra's Return-on-Tangible-Asset too high?
Tech Mahindra's current Return-on-Tangible-Asset of 15.05% is 14% above median its 10-year median of 13.20. Over the past 10 years, this metric has ranged from a low of 6.90 to a high of 16.37. The Software industry median Return-on-Tangible-Asset is 2.07. Tech Mahindra's value of 15.05% is 627.1% above this industry median. Based on the distribution chart, Tech Mahindra ranks #433 out of 2893 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 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's Return-on-Tangible-Asset compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #433 out of 2893 companies for Return-on-Tangible-Asset. This places Tech Mahindra in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.07. Tech Mahindra's value of 15.05% is 627.1% above this benchmark. Historically, Tech Mahindra's own Return-on-Tangible-Asset has ranged from 6.90 to 16.37 over the past decade. While the company's 10-year median is 13.20 vs. the industry median of 2.07, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.07, based on 2,893 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current Return-on-Tangible-Asset of 15.05% is 627.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Tech Mahindra and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current Return-on-Tangible-Asset is 15.05%, which is 14% above median its own 10-year median of 13.20. 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 ₹1,617.28, compared to a current price of ₹1,669.00 — trading 3.2% above its estimated fair value. The current Return-on-Tangible-Asset is 15.05%, which is 14% above median its 10-year median of 13.20 and 627.1% above the Software industry median of 2.07. Tech Mahindra's overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current Return-on-Tangible-Asset is 15.05% 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 overvalued.
The current stock price of ₹1,669.00 is trading 3.2% above its estimated GF Value™ of ₹1,617.28.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
Return-on-Tangible-Asset: 15.05% (14% above median its 10-year median of 13.20)
GF Value™: ₹1,617.28 vs. price of ₹1,669.00 (3.2% above fair value)
Industry Position: 627.1% above the Software median (#433 of 2893)
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.
77GF Score
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