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Tech Mahindra Shares Surge 7 Percent Following Q2 Results
- •Tech Mahindra shares gained 7 percent in early trade following the release of its second quarter results.
- •HSBC maintains a buy rating with a target price of 1800 rupees, highlighting strong growth and achieved EBIT margin targets.
- •CLSA issues a hold rating with a target price of 1494 rupees, noting a strong 25 percent year-on-year increase in the orderbook.
- •Nomura assigns a neutral rating with a target price of 1650 rupees as the company shifts focus to longer-term objectives.
- •Tech Mahindra remains the only largecap Nifty IT stock with positive year-to-date returns.
Key Questions Answered
Tech Mahindra reported a 32% year-on-year rise in net profit to Rs 1,586 crore for the quarter ended September 30, 2026, with consolidated revenue reaching Rs 16,180 crore. The company also recorded net new deal wins of $1.02 billion and declared an interim dividend of Rs 15 per share.
Investment banking firms had mixed recommendations following the September quarter results. HSBC maintained a 'buy' rating with a target price of Rs 1,800, CLSA issued a 'hold' rating with a target price of Rs 1,494, and Nomura gave a 'neutral' rating with a target price of Rs 1,650.
Tech Mahindra shares gained 7% in early trade following the earnings release, supported by an upcoming bonus issue announcement—the first in 11 years—and an approved interim dividend. It remains the only largecap Nifty IT stock with positive year-to-date returns.
