Tech Mahindra Ltd. share price target

Q1FY27 Performance: TechM reported revenue of US$1,660 mn, up 2.2% QoQ/ 6.1% YoY (up 2.6% QoQ/ 6.6% YoY in CC terms) while organic revenue grew 2.5% QoQ CC and 6.2% YoY CC. EBIT margin was up ~ 60 bps QoQ/~335 bps YoY at...

With healthy revenue growth of 6.6% YoY CC in Q1FY27, TechM is likely to deliver highest revenue growth among top 5 Indian IT companies in FY27, supported by sustained strong deal TCV momentum, and scale-up in large accounts (scaled 4 accounts to USD 50mn+ annual revenue in Q1FY27).

Revenue growth to hold within management's high single digit aspiration for FY27 as large deal ramp ups in comms and healthcare come through from Q2. Manufacturing should sustain on aerospace momentum even after the European auto pull forward reverses.

We expect Tech Mahindra to report a steady Q1FY27 with USD revenue of USD 1,643 Mn (+1.1% QoQ, +5.0% YoY), implying CC growth of ~1.0 to 1.2% QoQ.

Tech Mahindra (TECHM) reported 1QFY27 revenue of USD1.7b, up 2.6% QoQ in CC, above our estimate of 1% CC growth. Retail/BFSI/Manufacturing rose 1.2%/2.7%/9.0% QoQ, while Technology/Communication declined 1.7%/1.3% QoQ (in USD terms).

Telco is turning around—two deals are ramping up on staggered timelines, which should help the vertical transition from a multi-year drag to a neutral-to-positive contributor.

The outlook for FY27 and beyond is supported by a strategic shift from a "Negative ? Flat ? Positive" growth trajectory, with management targeting organic constant currency revenue growth that outperforms the peer-group average.

TechM is progressing well – entering the third year of its turnaround journey – with strong growth in FY26 deal TCV, at 41.6% YoY, higher than company average growth in larger accounts, and 63 must-win client additions.

We believe Tech Mahindra will continue its growth trajectory. Hence, we maintain a BUY rating on the stock.

Q4FY26 & FY26 Performance: TechM in Q4 reported revenue of US$1,625 mn, up 0.9% QoQ/ 4.9% YoY (up 0.6% QoQ/ 2.4% YoY in CC terms). EBIT margin was up ~ 70 bps QoQ/~330 bps YoY at 13.8%. Reported PAT stood at 1,354 crore, up 20.7% QoQ/ 16% YoY while adjusted PAT (ex-one-off from new labour code) was down 2.9% QoQ. For FY26, revenue came at US$6,385 mn, up 1.9% YoY (up 0.6% YoY...

TechM posted an in-line operating performance in Q4. Revenue grew 0.9% QoQ to USD1.63bn (up 0.6% CC), a tad ahead of our estimates.

4QFY26 was tad weaker than we expected on revenue though broadly inline on EBIT margin

The revenue growth (+0.6% CC QoQ) exceeded our estimates (+0.1% CC QoQ), aided by Comviva seasonality. The growth performance was balanced even beyond communications vertical, ex-Comm USD growth was 0.5% QoQ. The management also delved into three-year strategic initiatives (undertook in FY24), while mapping the progress on stabilizing growth and improving margins in FY26. On successfully achieving the milestone, the company is now gearing up to deliver industry average growth and achieve the last mile of margin improvement in FY27E. The earlier efforts of integrating portfolio companies, scaling the must-have accounts, hiring senior...

Tech Mahindra reported a strong Q4FY26, marking the successful completion of its "Stabilization Phase" with ninth consecutive quarter of margin improvement. Quarterly revenue reached USD 1.6bn, reflecting a 4.9% YoY increase, while full-year revenue stood at ~USD 6.4bn. A main highlight was the significant deal activity; new bookings hit a 5yrs high of ~USD 3.8bn, driven by strategic mega-deals in telecom and aerospace. Profitability was robust, with EBIT margins expanding to 13.8% in Q4, a significant 330bps improvement over the previous year. Full-year net profit grew 7% to USD...

Tech Mahindra (TECHM) reported 4QFY26 revenue of USD1.6b, up 0.6% QoQ in CC, in line with our estimate of 0.5% CC growth. BFSI/Technology rose 8.0%/2.5% QoQ, whereas Retail declined 5.3% QoQ (in USD terms).

The company delivered a strong performance, driven by robust deal momentum, improved execution and steady demand across key verticals, supported by a solution-led go-to-market strategy and deeper strategic client relationships. Management commentary remained constructive, highlighting continued focus on EBIT improvement through productivity initiatives, cost optimisation and operational efficiencies. The ramp-up of large multi-year deals, increasing adoption of AI-led and digital transformation offerings, and expansion in priority geographies are...

Q3FY26 Performance: TechM in Q3FY26 reported a revenue of US$1,610 mn, up 1.5% QoQ/ 2.7% YoY (up 1.7% QoQ / 1.3% YoY in CC terms). EBIT margin was up ~ 100 bps QoQ/~300 bps YoY to 13.1%. Adjusted PAT (ex-one-off from new labour...

We maintain a BUY rating on the stock.

The strong rebound in deal wins, expanding EBIT margins, and increasing contribution from large strategic clients provide better earnings visibility into FY27, supporting a gradual re-rating.

Tech Mahindra's Q3FY26 performance signals a meaningful turnaround, underpinned by improving growth momentum, sustained margin expansion and strong deal visibility. Revenue grew 1.7% QoQ in CC term, driven by broad-based traction across communications, manufacturing, retail and healthcare, while Europe posted robust 11% YoY growth aided by large deal ramps. EBIT margin expanded sharply to 13.1%, up 290 bps YoY, led by fixedprice productivity gains, pricing discipline and better revenue mix, with management confident of reaching ~15% margins by FY27. Deal wins hit a fiveyear high at USD 1.1bn TCV, up 48% YoY on an LTM basis, anchored by a landmark +USD 500mn European telecom mega-deal that materially enhances...