Tech Mahindra Ltd. share price target

Next-gen AI & digital transformation push: TechM is accelerating its transformation with the launch of TechM Orion, an agentic AI platform enabling autonomous business workflows, and the Orion Marketplace for intelligent AI agents. Participation in India's sovereign LLM development initiative positions TechM as a key player in generative AI. These initiatives enhance client stickiness, accelerate AI-led solutions adoption, & create new revenue streams,...

Tech Mahindra (TechM) delivered a healthy beat on both revenue and margins in Q2FY26. However, turnaround is progressing at a slower pace.

Revenue stood at INR 1,39,949 Mn, up 4.8% QoQ and 5.1% YoY, slightly ahead of our estimate by 2.9%, driven by traction in key verticals and improved deal conversions across the US and Europe.

We maintain a BUY rating on the stock.

Tech Mahindra (TECHM) reported 2QFY26 revenue of USD1.6b, up 1.6% QoQ in CC vs. our estimate of 1.0% CC growth. Retail/Manufacturing/BFSI grew 9.0%/5.3%/3.8% QoQ, whereas Communications/Others fell 2.0%/8.8% QoQ (in USD terms).

At current levels, the stock is attractively valued. We recommend a BUY rating with a TP of Rs 1,660/share, implying an upside of 10% from CMP.

TechM’s 1Q operating performance was slightly below expectations. Revenue grew 1.0% QoQ to USD1.56bn (down 1.4% CC), marginally missing estimates.

Tech Mahindra's Q1 FY26 results demonstrate solid progress in its ongoing turnaround, driven by strong execution, margin improvement, and healthy deal momentum. Revenue increased 0.3%YoY to USD 1,564mn, with EBIT margin expanding for the seventh consecutive quarter to 11.1%. Profit after tax surged 34% YoY, reflecting operational discipline and cost efficiency. The company won USD 809mn in new deals, up 51% YoY, showing strong growth in BFSI, retail, and telecom verticals. Structural changes like centralizing delivery, integrating the SAP platform, and implementing shared services have boosted efficiency, while...

Q1FY26 revenue came in at INR 1,33,512 Mn. (-0.2% QoQ /+2.7% YoY),
in-line with our estimates (-0.9%), driven by growth traction across BFSI, Communication and Retail segments. USD Revenue stood at 1,564 Mn. (+1.0%
QoQ CC/ +0.3% YoY CC), better than our expectations of +0.8% QoQ CC growth.

remains in a bright spot with a steady recovery in Telco despite the negative seasonality in Comviva. Automotive within Manufacturing remains a Considering the Q1 weakness, the ask-rate for the rest of the year to achieve flat FY26 CC growth is ~0.8% CQGR, which we believe is a little challenging, given the underlying macro uncertainties. Although Communication has improved, it is difficult to draw a trend, given the conversion on deal TCV also tends to be slower than anticipated. However, we believe the cost optimization efforts would continue at a similar pace of FY25 with continued efforts to...

We resume our coverage with a BUY rating on the stock.

Tech Mahindra’s (TechM’s) reported revenues stood at $1,564 million, up 1% q-o-q/0.4% y-o-y in-line with our estimate. In CC terms, revenue declined 1.4% q-o-q, missing our estimate of 0.7% decline.

Tech Mahindra (TECHM) reported 1QFY26 revenue of USD1.6b, down 1.4% QoQ in constant currency (CC) vs. our estimate of 1.0% cc decline.

In Q4FY25, revenue increased 4.0% YoY to Rs. 13,384cr, driven by robust growth in the European markets (+5.1% YoY). Rest of the world rose 4.8% YoY, led by growth in the Asia-Pacific Japan region, while North America experienced a decline of 4.7%...

TechM’s turnaround efforts are yielding results with its BFSI portfolio strengthening, large logo additions, a stronger deal TCV run-rate and improvement in margins. Strong new deal TCV growth of 42.6% YoY provides some comfort on FY26 growth outlook.

Deal wins remain robust at USD 798 mn in Q4 The performance on the topline (-1.5% CC QoQ) was below our estimates (+0.3% CC QoQ), while the execution on margins was strong, exceeding our expectations by 30bps QoQ. The decline in revenue was led by unanticipated delays in renewals within Hi-Tech, which partly supported by strong momentum in BFSI (+2.5% QoQ). The management demonstrated one-year milestone of stabilizing growth and scaling profitability, while showcasing the additional efforts that need to be put in FY26 to achieve the FY27 goal. The...

Tech Mahindra’s (TechM’s) reported revenue stood at $1,549 million, down 1.5% q-o-q in CC terms, missing our estimate of 0.6% q-o-q decline in CC terms, driven by weakness in Hi-Tech, Healthcare & Lifesciences, Retail and Others.

Tech Mahindra (TECHM) reported 4QFY25 revenue of USD1.5b, down 1.5% QoQ in constant currency (CC) vs. our estimate of 0.8% cc decline. BFSI/Communications grew 2.4%/1.0% QoQ, while Healthcare/Hi-tech and Media declined 5.6%/8.2% QoQ. EBIT margin was up 40bp QoQ at 10.5%, beating our estimate of 10.3%.