The move comes at a time when investor sentiment on Indian IT stocks has been subdued due to weak global tech spending. However, LIC’s decision signals confidence in the long-term potential of the country’s fifth-largest IT services provider.
IT stocks faced selling pressure this year, but Tech Mahindra fared better compared to peers. Infosys was down over 20%, TCS about 23% and Wipro shares fell 15%.
As of June 2025 quarter, Tech Mahindra’s promoters hold 35%, while the public, including institutions, owns about 65%.
Among other big institutional investors, SBI Life Insurance holds just over 1%, while mutual funds such as SBI Nifty 50 ETF, ICICI Prudential Technology Fund, and Kotak Flexicap Fund also feature prominently.
Insurance companies together hold 13.6% of the firm, with LIC alone accounting for over 10%. This makes LIC one of the single-largest institutional shareholders in Tech Mahindra.
What analysts are saying
According to Axis Securities, Tech Mahindra’s diversified verticals and strong global presence remain key positives.
The company serves over 1,100 clients across sectors such as communications, BFSI, manufacturing, technology, healthcare, and logistics, with operations in more than 90 countries. Its top 10 clients contribute about a quarter of revenues.
The brokerage notes that Tech Mahindra has stepped up investments under Project Fortius, aimed at cost optimisation and portfolio integration. It is also focusing on deal wins and artificial intelligence. The company reported total contract value (TCV) of $809 million in Q1FY26, a 51% year-on-year increase.
Axis Securities expects EBIT margins to expand towards 15% by FY27, supported by operational efficiency, stronger deal conversions, and broad-based recovery in IT demand. It values the stock attractively at current levels and has a “Buy” rating with a target price of Rs 1,660.
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