Tech Mahindra Share Price Target: Emkay Maintains Rs 1,600 Amid Muted Q4

Tech Mahindra, a global IT services and consulting firm offering solutions in digital transformation, AI, and cloud computing, reported a relatively soft financial performance for the March 2025 quarter. The muted performance was marked by subdued revenue growth and continued weakness in key verticals.

While the quarter lacked topline momentum, there were early signs of a margin recovery. The company reported a sequential expansion in EBIT margin, driven by cost discipline and improved execution across projects.

Analyst View: 'ADD' Rating, Target Rs 1,600

Brokerage houses remain “cautiously optimistic” about Tech Mahindra’s recovery roadmap. A recent note by Emkay Global has maintained an ‘ADD’ rating on the IT major's stock with a target price of Rs 1,600, citing a clear focus on execution and a healthy pipeline of deals.

“While the current quarter was soft, the direction of the business is encouraging. Margin levers are intact, and with demand expected to stabilize, we see potential for gradual improvement,” the note stated.

Tech Mahindra Q4 FY25 Highlights

The Mumbai-based firm's revenue growth was flat sequentially, reflecting ongoing challenges in the communications vertical and subdued discretionary tech spending. Its EBIT margin improved by 70 basis points Quarter-on-Quarter (QoQ), supported by productivity initiatives and tighter cost controls. Total contract wins exceeded US$ 500 million, with a balanced mix of new clients and renewals across geographies.

Also Read: Tech Mahindra Q4 Results FY25: Final Dividend Of Rs 30 Delights Investors | Republic World

On Track for FY27 Vision

Despite the subdued quarter, Tech Mahindra's management reiterated its confidence in achieving its FY27 strategic goals, focusing on revenue growth, margin expansion, and operational efficiency. The company remains committed to its three-year transformation plan, which aims to deliver industry-level growth and best-in-class margins by FY27. It continues to sharpen its focus on large deal wins, automation, cloud services, and investments in generative AI.

Early traction is being observed in automation-led digital transformation projects, particularly in the manufacturing, BFSI, and healthcare sectors. The company's management highlighted that the operational levers implemented over the past few quarters are beginning to yield results.

Business Outlook

According to Emkay Global, Tech Mahindra continues to navigate a challenging operating environment, but its structural transformation efforts are progressing well. With a sustained focus on cost optimization and strategic investment in next-generation technologies, the company is positioning itself for a more sustainable growth trajectory heading into FY26 and beyond.