Is Tech Mahindra (TECHM) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 1.7% / 30% | 6.3% / 30% | 5.6% / 30% | 0.37% / 5% | ✓ HALAL |
| DJIM | 1.7% / 33% | 6.3% / 33% | 5.6% / 33% | 0.37% / 5% | ✓ HALAL |
| MSCI | 4.6% / 33% | 16.6% / 33% | 14.7% / 33% | 0.37% / 5% | ✓ HALAL |
| S&P | 1.7% / 33% | 6.3% / 33% | 5.6% / 33% | 0.37% / 5% | ✓ HALAL |
| FTSE | 4.6% / 33% | 16.6% / 33% | 14.7% / 50% | 0.37% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 33.8% | |
| Operating Margin | 13.1% | |
| Net Margin | 8.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $57.9B |
| Free Cash Flow | $51.9B |
| Total Debt | $20.3B |
| Debt-to-Equity | 7.0 |
| Total Assets | $444.9B |
Price & Trading
| Last Close | INR 1,408.50 |
| 50-Day MA | INR 1,507.69 |
| 200-Day MA | INR 1,518.40 |
| Avg Volume | 2.1M |
| Beta | 0.2 |
|
52-Week Range
INR 1,209.40
| |
About Tech Mahindra (TECHM)
Tech Mahindra Limited provides information technology services and solutions in the Americas, Europe, India, and internationally. It operates through Information technology Business and Business Process Services segments. It offers application development maintenance, intelligent automation, testing, performance engineering, cloud consulting, engineering and network, data analytics, and artificial intelligence (AI) services. The company also provides business process services, such as Consulting NXT.NOW, growth accelerators, business-process-as-a-service, service desk, technical assistance, supply chain management, finance and accounting, GIS, analytics, trust and safety, and transformation through technology; customer experience and design services; and cyber security, blockchain, and metaverse services. In addition, it offers ESG consulting and talent pool, energy, resource management, supply chain, and data management and reporting solutions, as well as environment, health, and safety solutions; and digital enterprise applications. Further, the company provides Yantr.ai, a field service management software; Kornea, a cloud-native AI-powered workforce management solution; Populii, an enterprise gig platform; AceFin, an AI-based BPaaS solution; AftEAZE, a digital aftermarket platform; netOps.ai, a cloud platform for telco networks; MobiLytix marketing studio; Epselon automation platform; Entellio, a chatbot platform; Blue Marble solution; and InfoWise for enterprise metadata. It serves banking and financial services; communication; energy and utilities; healthcare and life sciences; hi-tech; insurance; manufacturing; media and entertainment; private equity; oil and gas; professional services; retail and consumer goods; and travel, transportation, hospitality, and logistic sectors. It has a collaboration with NVIDIA Corporation to develop AI powered telco network operations reasoning agent. The company was incorporated in 1986 and is based in Pune, India.
Purification Calculator
As a halal stock with 0.37% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Tech Mahindra (TECHM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Tech Mahindra is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Tech Mahindra's debt ratio?
Tech Mahindra's debt ratio is 1.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 4.6%.
Does Tech Mahindra require dividend purification?
Yes, Tech Mahindra has an impermissible income ratio of 0.37%, which means 0.37% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Tech Mahindra's key financial metrics?
Tech Mahindra has a market capitalization of $1.2T, trailing P/E ratio of 26.7, and revenue of $529.9B. The company maintains a gross margin of 33.8% and a net margin of 8.4%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.