Tech MahindraNSE:TECHM -1.68%78 ROA % is 10.97% as of Mar. 2026, which is 4% below its 10-year median of 11.45. 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 2,882 Software companies, Tech Mahindra ranks better than 83.03% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tech Mahindra's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹54,152 Mil.
Tech Mahindra's average Total Assets over the quarter that ended in Mar. 2026 was ₹493,694 Mil. Therefore, Tech Mahindra's annualized ROA % for the quarter that ended in Mar. 2026 was 10.97%.
The historical rank and industry rank for Tech Mahindra's ROA % or its related term are showing as below:
NSE:TECHM'
s ROA % Range Over the Past 10 Years
Min: 5.26 Med: 11.45 Max: 13.45
Current: 10.33
During the past 13 years, Tech Mahindra's highest ROA % was 13.45%. The lowest was 5.26%. And the median was 11.45%.
NSE:TECHM's ROA % is ranked better than 83.03% of 2882
companies
in the Software industry
Industry Median: 1.645
vs NSE:TECHM: 10.33
Tech Mahindra (NSE:TECHM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Tech Mahindra ROA % Related Terms
Tech Mahindra ROA % Historical Data
* Premium members only.
The historical data trend for Tech Mahindra's ROA % 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.
For the Information Technology Services subindustry, Tech Mahindra's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's ROA % distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Tech Mahindra (NSE:TECHM) has a ROA % of 10.97% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tech Mahindra and its competitors. This is near median its historical median of 11.45. Over the past decade, Tech Mahindra's ROA % has ranged from 5.26 to 13.45. According to the industry distribution chart, Tech Mahindra ranks #489 out of 2882 companies in the Software industry, placing it in the top 17%.
Is Tech Mahindra's ROA % too high?
Tech Mahindra's current ROA % of 10.97% is near median its 10-year median of 11.45. Over the past 10 years, this metric has ranged from a low of 5.26 to a high of 13.45. The Software industry median ROA % is 1.65. Tech Mahindra's value of 10.97% is 566.9% above this industry median. Based on the distribution chart, Tech Mahindra ranks #489 out of 2882 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 ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #489 out of 2882 companies for ROA %. This places Tech Mahindra in the top 17% of its industry — outperforming the majority of peers. The industry median ROA % is 1.65. Tech Mahindra's value of 10.97% is 566.9% above this benchmark. Historically, Tech Mahindra's own ROA % has ranged from 5.26 to 13.45 over the past decade. While the company's 10-year median is 11.45 vs. the industry median of 1.65, 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 ROA % for a Software company?
The median ROA % among Software companies is 1.65, based on 2,882 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current ROA % of 10.97% is 566.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tech Mahindra and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current ROA % is 10.97%, which is near median its own 10-year median of 11.45. 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 ROA % is 10.97%, which is near median its 10-year median of 11.45 and 566.9% above the Software industry median of 1.65. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current ROA % is 10.97% 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:
ROA %: 10.97% (near median its 10-year median of 11.45)
GF Value™: ₹1,562.07 vs. price of ₹1,437.10 (8% below fair value)
Industry Position: 566.9% above the Software median (#489 of 2882)
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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