Tech Mahindra’s shares jumped 4% in early trade on Friday, as the company’s Q2 revenue topped estimates by 0.2% and profit after tax edged up 3%.
HSBC kept a buy rating with a ₹1,800 target, signalling a 9% upside from the last close. CLSA stuck to a hold rating, cutting the stock to ₹1,494, a 9.5% downside, while Nomura remained neutral at ₹1,650, unchanged from the previous close.
Despite a 25% rise in the orderbook year‑on‑year, Tech Mahindra did not clinch any mega deals in the September quarter. The firm’s management said pricing compression stems from fierce competition rather than shrinking IT budgets, and it aims to capture market share without eroding margins.
The board approved an interim dividend and announced a bonus issue, its first in 11 years. Management reiterated its FY27 target of a 15% EBIT margin and revenue growth double the industry average, underlining a focus on long‑term share‑price creation.
With only 44 analysts covering the stock, 29 buy, 10 hold, and five sell, Tech Mahindra is the sole large‑cap IT name posting a positive YTD return of 7%, while peers languish with 20‑35% year‑to‑date losses.