Tech Mahindra shares slipped 1.4 per cent in trade on BSE, logging an intra-day low at ₹1,441.25 per share. However, at 9:22 AM, Tech Mahindra share price recovered slightly and was trading 0.99 per cent lower at ₹1,448.30 per share. In comparison, the BSE Sensex was down 0.79 per cent at 77,896.66. The stock was under pressure for the second session, down over 3 per cent, after the company released its its Q4FY26 results in market hours on Wednesday.
In Q4, the company recorded a net profit of ₹1,353.8 crore, up 16 per cent from ₹1,166.7 crore a year ago. On a sequential basis, profit was up 20.6 per cent.
Its revenue for the quarter was up 12.6 per cent year-on-year (Y-o-Y) at ₹15,076 crore. Sequentially, the revenue grew 4.74 per cent.
Tech Mahindra’s performance missed Bloomberg estimates on net profit but beat estimates on revenue. Bloomberg had estimated revenue at ₹14,776 crore and net profit at ₹1,509.4 crore. Check detailed results here
Brokerages view on Tech Mahindra Stock
Emkay Global Financial Services | Reduce | Target: ₹1,450
Analysts noted that Tech Mahindra posted an in-line operating performance in Q4. Deal intake remained strong, with total contract value (TCV) of $1.07 billion in Q4 (second consecutive quarter of >USD1bn TCV). While the macro remains uncertain, the company believes it has sufficient stabilisers and resilience to continue with growth acceleration in FY27.
The management reiterated confidence in outperforming the peer-average growth by FY27 and progressing toward 15 per cent Earnings before interest and tax (Ebit) margin, supported by broad-based growth, strong deal intake, healthy deal pipeline, improved account mining, sustained investments in artificial intelligence (AI), consulting, high-growth service lines, and strengthening partnerships and alliances ecosystem. It expects margin expansion in FY27 to be driven by a combination of continued cost takeout and operating leverage as revenue growth accelerates. The brokerage cut FY26/FY27E earnings per share (EPS) by 1.7/1.5 per cent, factoring in the Q4 performance. READ | Infosys Q4 preview: PAT may slip 2% QoQ; Iran war, GenAI impact eyed
Motilal Oswal Financial Services | Buy | Target: ₹1,750
The brokerage kept its estimates unchanged, reflecting steady directional progress. It estimates FY27 Ebit margins at 14.8 per cent, which would result in a 25 per cent CAGR in INR PAT over FY26-28. Early signs of a turnaround in the Communications vertical, supported by a large European deal, improve confidence in the medium-term growth outlook.
The ongoing restructuring under the new leadership is tracking well, and this quarter was another step in the right direction. Motilal Oswal continues to like Tech Mahindra’s bottom-up turnaround story. It values the stock at 20x FY28E EPS.
JM Financial Institutional Securities | Add | Target raised to ₹1,555 from ₹1,550
Tech Mahindra reported Q4FY26 results – revenues and margins were largely in line, according to JM Financial. Analysts see Tech Mahindra’s margins recovery – already factored in the valuations. Valuations are at 19x FY27 consensus EPS, at 7 per cent premium to the sector. The brokerage revised its EPS estimates marginally over FY27-28E, incorporating Q4 results.
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