Tech Mahindra Stock Surges on Robust Q1 Earnings, Margin Expansion Spurs Brokerage Target Hikes
Tech Mahindra Limited's share price jumped over 3% in morning trade on Friday, July 17, 2026, touching an intraday high of ₹1,562.90 on the NSE. The rally follows the IT major's robust Q1 FY27 earnings print, highlighted by a stellar 28.4% year-on-year surge in consolidated net profit to ₹1,465.1 crore.
- Republic Business
- 3 min read
;'%3e%3cpath%20d='m8,15.99c4.41,0,7.99-3.58,7.99-7.99S12.41,0,8,0,0,3.59,0,8s3.58,7.99,7.99,7.99Z'%20style='stroke:%23fff;%20stroke-miterlimit:10;%20stroke-width:.02px;'/%3e%3cpath%20d='m3.08,3.37l3.82,5.11-3.84,4.15h.87l3.37-3.64,2.72,3.64h2.94l-4.04-5.39,3.58-3.87h-.86l-3.1,3.35-2.5-3.35h-2.94Zm1.27.64h1.35l5.97,7.99h-1.35l-5.97-7.99Z'%20style='fill:%23fff;'/%3e%3c/g%3e%3c/svg%3e){kind=small}
Shares of Tech Mahindra Limited rallied sharply on Friday morning after the company reported a massive 28.4% year-on-year surge in its consolidated first-quarter net profit, alongside resilient sequential margin improvement.
By 10:52 AM IST, Tech Mahindra was trading higher at ₹1,538.00 on the National Stock Exchange (NSE), up 1.83% from its previous close of ₹1,510.30. The stock had earlier opened strong at ₹1,540.00 and scaled an intraday peak of ₹1,562.90.
Net Profit Jumps 28%
The tech major reported a consolidated net profit of ₹1,465.1 crore for the quarter ended June 30, 2026, marking a significant 28.4% ascent from the ₹1,140.60 crore recorded in the corresponding quarter last fiscal year. Revenue from operations climbed 15% year-on-year to reach ₹15,605.50 crore.
However, the bottom line missed the street's aggressive expectations. A consensus estimate monitored by Bloomberg had projected a net profit of ₹1,607 crore, dragged down primarily by elevated subcontracting costs and operational expenses during the quarter. Sequentially, net profit registered a healthy growth of 8% from the ₹1,356.4 crore logged in the January-March quarter.
Advertisement
Sustained Deal Momentum Drives Multi-Vertical Growth
The primary pillar supporting investor confidence was the company's strong pipeline. In constant currency terms, revenue expanded 6.6% year-on-year, propelled by a 33.3% jump in total contract values (TCV) for new deal wins, which touched $1.08 billion.
"Three consecutive quarters of deal wins exceeding $1 billion underscores the resilience of our business and the growing relevance of our offerings," said Mohit Joshi, Managing Director and CEO of Tech Mahindra.
Advertisement
Joshi also noted a distinct widening of high-value engagements, pointing out that Tech Mahindra's roster of clients contributing upwards of $50 million in annual revenue grew by seven over the past 12 months. Regionally, European segments spear-headed growth with a 12.1% year-on-year acceleration.
Brokerages Upgrade
Tech Mahindra's earnings before interest and tax (EBIT) soared 53.3% year-on-year to ₹2,264 crore, helping its EBIT margin widen by 330 basis points over last year to settle at 14.4%. Following the solid execution, the management confidently revised its FY27 exit margin aspiration up to more than 15%, compared to its earlier baseline target of exactly 15%.
The robust operational performance triggered immediate revisions from major brokerages. Elara Securities maintained its 'Accumulate' rating and lifted its target price to ₹1,620. Concurrently, JM Financial upgraded its target price to ₹1,670 from ₹1,525, maintaining an 'ADD' stance and stating that Tech Mahindra is strongly positioned to emerge as the growth leader among large-tier Indian IT enterprises for the full FY27 cycle.