Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Tech MahindraNSE:TECHM -1.34%77 Return-on-Tangible-Equity is 28.22% as of Mar. 2026, which is 9% above its 10-year median of 25.82. GuruFocus rates NSE:TECHM with a GF Score™ of 77/100 and a GF Value™ of ₹1,566.71 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,476 Software companies, Tech Mahindra ranks better than 73.59% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Tech Mahindra's annualized net income for the quarter that ended in Mar. 2026 was ₹54,152 Mil. Tech Mahindra's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹191,895 Mil. Therefore, Tech Mahindra's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 28.22%.
The historical rank and industry rank for Tech Mahindra's Return-on-Tangible-Equity or its related term are showing as below:
NSE:TECHM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.15 Med: 25.82 Max: 31.62
Current: 26.77
During the past 13 years, Tech Mahindra's highest Return-on-Tangible-Equity was 31.62%. The lowest was 14.15%. And the median was 25.82%.
NSE:TECHM's Return-on-Tangible-Equity is ranked better than 73.59% of 2476
companies
in the Software industry
Industry Median: 8.825
vs NSE:TECHM: 26.77
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tech Mahindra Return-on-Tangible-Equity Related Terms
Tech Mahindra Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Tech Mahindra's Return-on-Tangible-Equity 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-Equity Comparison
For the Information Technology Services subindustry, Tech Mahindra's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.22% mean?
Tech Mahindra (NSE:TECHM) has a Return-on-Tangible-Equity of 28.22% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tech Mahindra and its competitors. This is near median its historical median of 25.82. Over the past decade, Tech Mahindra's Return-on-Tangible-Equity has ranged from 14.15 to 31.62. According to the industry distribution chart, Tech Mahindra ranks #654 out of 2476 companies in the Software industry, placing it in the top 26.4%.
Is Tech Mahindra's Return-on-Tangible-Equity too high?
Tech Mahindra's current Return-on-Tangible-Equity of 28.22% is near median its 10-year median of 25.82. Over the past 10 years, this metric has ranged from a low of 14.15 to a high of 31.62. The Software industry median Return-on-Tangible-Equity is 8.83. Tech Mahindra's value of 28.22% is 219.8% above this industry median. Based on the distribution chart, Tech Mahindra ranks #654 out of 2476 companies in the Software industry, which is above the industry midpoint. 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-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #654 out of 2476 companies for Return-on-Tangible-Equity. This puts Tech Mahindra in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.83. Tech Mahindra's value of 28.22% is 219.8% above this benchmark. Historically, Tech Mahindra's own Return-on-Tangible-Equity has ranged from 14.15 to 31.62 over the past decade. While the company's 10-year median is 25.82 vs. the industry median of 8.83, 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-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.83, based on 2,476 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current Return-on-Tangible-Equity of 28.22% is 219.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tech Mahindra and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current Return-on-Tangible-Equity is 28.22%, which is near median its own 10-year median of 25.82. 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 ₹1,566.71, compared to a current price of ₹1,484.30 — trading 5.3% below its estimated fair value. The current Return-on-Tangible-Equity is 28.22%, which is near median its 10-year median of 25.82 and 219.8% above the Software industry median of 8.83. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current Return-on-Tangible-Equity is 28.22% 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 ₹1,484.30 is trading 5.3% below its estimated GF Value™ of ₹1,566.71.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
Return-on-Tangible-Equity: 28.22% (near median its 10-year median of 25.82)
GF Value™: ₹1,566.71 vs. price of ₹1,484.30 (5.3% below fair value)
Industry Position: 219.8% above the Software median (#654 of 2476)
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
Get the complete analysis for NSE:TECHM
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:TECHM has been successfully added to your 
