Tech Mahindra's shares jumped 4.75% to ₹1,650 on the NSE after the company announced that its consolidated net profit for Q2FY27 rose to ₹1,586 cr, up 8.2% quarter‑on‑quarter from ₹1,465 cr and eclipsing the ₹1,576 cr forecast.
Revenue climbed 2% QoQ to $1,693 million, a 1.3% beat on the street's $1,682 million expectation, and a 1.4% lift on a constant‑currency basis that outpaced the sector's 1.2% average growth.
Earnings before interest and tax climbed 5.4% QoQ to ₹2,387 cr, marking a 40.5% year‑on‑year surge, while the EBIT margin expanded to 14.8% from 14.4%, inching toward the 15% target. The larger Orange telecom contract, won in FY26 Q4, and a two‑month revenue boost from the Avant Techno Solutions consolidation helped offset a normalized one‑time manufacturing benefit that previously inflated earnings.
Management declared an interim dividend of ₹15 per share and approved a 1:1 bonus issue, pending regulatory clearance, while the stock has gained 13% YTD, positioning it as a top‑performer in the IT services space ahead of its FY27 earnings release slated for May 2027.