Largecap IT stock in focus after partnering with ServiceNow to deliver next-gen broadband solutions

A leading IT stock is drawing market attention following its strategic partnership with ServiceNow to develop next-generation broadband solutions. This collaboration aims to enhance network efficiency, streamline operations, and drive digital transformation in the broadband sector, positioning the company for significant growth.

Price Variation

During Thursday’s trading session, shares of Tech Mahindra Ltd reached an intra-day high of Rs.1,400.00 each, falling from the previous closing price of Rs.1,423.05 per share. The shares have further retreated and are trading at Rs.1,370.05 apiece. Over the past five years, the stock has delivered over 160 percent returns. 

What Happened 

Tech Mahindra, a global leader in technology consulting and digital solutions, has partnered with ServiceNow to develop advanced broadband solutions for Communication Service Providers (CSPs). This collaboration introduces a comprehensive suite of vertical solutions designed to support every stage of a broadband CSP’s operations, from network planning and deployment to managing services, enhancing customer experience, and maximizing revenue.  

At the core of this partnership is Tech Mahindra’s netOps.now platform, an integrated end-to-end solution built on ServiceNow’s Technology, Media, and Telecommunications (TMT) product suite. The platform unifies key CSP functions, including customer service, operations, order management, and partner ecosystems, into a seamless workflow.  

Additionally, the solution incorporates AI-driven analytics, Network-as-a-Service (NaaS), Cloud-native Open Source Software (OSS) systems, and intelligent automation to simplify operations and tap into the rapidly growing “Everything-as-a-Service” market. With these capabilities, CSPs can improve operational efficiency by up to 50 percent, accelerate time-to-market, and scale broadband rollouts more effectively.

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Management Commentary 

Atul Soneja, Chief Operating Officer, Tech Mahindra, said, “The telco industry faces increasing pressure to modernize legacy systems, streamline network management, and enhance operational agility. 

Our partnership with ServiceNow will address these challenges and empower broadband providers to deliver high-speed connectivity, drive digital inclusion, and create value for communities globally. With an industry-leading zero-touch broadband operations platform, we will enable customers to seamlessly address connectivity challenges across rural, suburban, and urban markets.”

Financial Overview

In its recent financial update, Tech Mahindra Ltd reported consolidated revenue of Rs.13,286 crores for Q3 FY25, reflecting a slight increase compared to Rs.13,101 crores in Q3 FY24. Moreover, the company reported a net profit of Rs.989 crores in Q3 FY25, rising 89 percent from Rs.524 crores posted during the same period last year. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 17.02 percent and a Return on Equity (ROE) of 12.38 percent. Its Price-to-Earnings (P/E) ratio stands at 37.21, higher than the industry average of 35.36. Furthermore, the company maintains a current ratio of 2.06, a debt-to-equity ratio of 0.08, and an Earnings Per Share (EPS) of Rs.38.26. 

Written by – Siddesh S Raskar

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