🧠After years of margin mayhem, TechM posted an 80% PAT jump in FY25. But is this a one-off reboot or a full OS upgrade?
⚡ At a Glance
Tech Mahindra reported ₹4,253 Cr PAT in FY25 — a sharp 77% YoY rebound — and improved margins to 13%. Yet, it’s still the weakest top-tier IT player on revenue growth. At 39x P/E, are we paying for the Mahindra brand or a genuine tech turnaround?
🖥️ 1. What Does Tech Mahindra Do?
Tech Mahindra (TechM) is the IT arm of the Mahindra Group — the only top 5 Indian IT firm not born in Bengaluru.
🧾 Services:
- Application development
- IT-enabled
- services (BPO/KPO)
- Consulting & transformation
- Telecom & 5G platforms
- Cloud, AI, analytics (aka buzzwords bingo)
📡 Legacy DNA = Telecom IT💡 New pitch = AI + Experience + Platforms
🪫 2. Why It Crashed (and Then Rebooted)
📉 Between FY22 and FY24:
- Margins fell from 18% → 9%
- PAT dropped from ₹5,630 Cr → ₹2,397 Cr
- Street dubbed it the “Wipro of Mahindra Group” (and not in a good way)
👨‍💼 Enter CP Gurnani → Exit in 2023👨‍💼 Mohit Joshi (ex-Infosys) took charge📊 FY25 = first
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