Tech Mahindra (NSE:TECHM) ROCE %: 21.56% (As of Mar. 2026)


NSE:TECHM Tech Mahindra Ltd NSE:TECHM
78 GF Score
Price ₹1,437.10
GF Value ₹1,562.07
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Tech Mahindra ROCE %?

Tech Mahindra NSE:TECHM -1.68% 78 ROCE % is 21.56% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tech Mahindra's annualized ROCE % for the quarter that ended in Mar. 2026 was 21.56%.

Tech Mahindra  (NSE:TECHM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Tech Mahindra ROCE % Related Terms

Tech Mahindra ROCE % Historical Data

* Premium members only.

The historical data trend for Tech Mahindra's ROCE % 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.

Tech Mahindra ROCE % Chart

Tech Mahindra Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.66 20.77 11.37 19.08 20.72

Tech Mahindra Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.48 21.32 21.58 19.87 21.56
NSE:TECHM
78GF Score
Tech Mahindra Ltd NSE:TECHM
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tech Mahindra ROCE % Calculation

Tech Mahindra's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=69105/( ( (444945 - 126740) + (493694 - 144975) )/ 2 )
=69105/( (318205+348719)/ 2 )
=69105/333462
=20.72 %

Tech Mahindra's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=75176/( ( (0 - 0) + (493694 - 144975) )/ 1 )
=75176/( ( 0 + 348719 )/ 1 )
=75176/348719
=21.56 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 21.56% mean?
Tech Mahindra (NSE:TECHM) has a ROCE % of 21.56% as of Mar. 2026.
Is Tech Mahindra's ROCE % too high?
Tech Mahindra's current ROCE % is 21.56%. The Software industry median ROCE % is 5.27. Tech Mahindra's value of 21.56% is 309.1% above this industry median. 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 ROCE % compare to IBM and ACN?
Tech Mahindra's ROCE % of 21.56% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. Tech Mahindra's value of 21.56% is 309.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.27, based on 2,713 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current ROCE % of 21.56% is 309.1% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current ROCE % is 21.56%. 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 ROCE % is 21.56% and 309.1% above the Software industry median of 5.27. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current ROCE % is 21.56% 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:

  • ROCE %: 21.56%
  • GF Value™: ₹1,562.07 vs. price of ₹1,437.10 (8% below fair value)
  • GF Score™: 78/100 with 3 warning signs
  • Industry Position: 309.1% above the Software median

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 Business Description

Other Exchanges 532755:India
Address Plot No. 1, Phase III, Rajiv Gandhi Infotech Park, Hinjewadi, Pune, MH, IND, 411 057
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

Get the complete analysis for NSE:TECHM

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,437.10
Price
₹1,562.07
GF Value