Shares of Tech Mahindra climbed as much as 3.8% to Rs 1,734.05 on the BSE on Monday, extending gains after the company reported a year-on-year rise in profit and revenue for the December quarter, alongside record deal wins. For Q3FY26, Tech Mahindra reported a consolidated net profit of Rs 1,122 crore, up 14% from Rs 983.2 crore a year earlier. Sequentially, profit declined 6.03% from Rs 1,194 crore.
Revenue from operations rose 8.34% year-on-year to Rs 14,393 crore, while growing 2.85% quarter-on-quarter. Diluted earnings per share stood at Rs 12.64.
Brokerages split: hold versus buy
The results triggered a reassessment among brokerages, with opinions split between cautious optimism and outright bullishness.
Nuvama upgraded Tech Mahindra to ‘Hold’ from ‘Reduce’ and raised its target price to Rs 1,650 from Rs 1,350, citing strong Q3 execution and record deal wins. The brokerage said the company “delivered strong Q3FY26 numbers, with revenue growing +1.7% CC QoQ, beating estimates,” and noted that total contract value stood at a record USD 1,096 million.
Nuvama said that under CEO Mohit Joshi’s leadership, Tech Mahindra is strengthening its business fundamentals and sustainability while balancing growth and margins. However, it flagged valuation concerns and remained cautious on profitability ambitions. The brokerage said it remains “sceptical on the 15% margin target” and forecasts 14% margins in FY27, which it said would still be a significant achievement. While it said it is turning positive on the company, it added that valuations remain relatively expensive.
Motilal Oswal, by contrast, reiterated a ‘Buy’ rating, arguing that a turnaround in the communications business and steady margin expansion support a more bullish stance. The brokerage has a target price of Rs 2,350, implying a potential upside of 41% from current levels.
Motilal Oswal said Tech Mahindra reported Q3 revenue growth of 1.7% quarter-on-quarter in constant currency, well ahead of its estimates, with EBIT margin expanding 100 basis points quarter-on-quarter to 13.1%. It highlighted a large USD 500 million deal win in Europe in the communications vertical as a key inflection point after a prolonged period of decline. The telecom segment, which accounts for about 35% of total revenue, posted year-on-year growth of 4.6% in dollar terms, breaking a trend of contraction seen in nine of the last 10 quarters.
The brokerage said it believes the company’s FY27 growth rate could improve to 4.7% year-on-year in organic constant-currency terms, supported by rising AI-led spending and improved deal conversion. It also said that the 15% EBIT margin target for FY27 now appears “within sight,” with focus shifting increasingly toward growth execution.
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