Revenue from operations increased 13% YoY to Rs 15,076 crore during the quarter. On a quarter-on-quarter basis, revenue grew 5%, while EBIT rose 10.2% to Rs 2,084 crore.
Management said FY26 marked the conclusion of its stabilisation phase, with margins improving for the tenth straight quarter despite a tough macro backdrop. CFO Rohit Anand noted that the company followed a disciplined capital allocation strategy and raised dividends by more than 13%, taking the total FY26 payout to Rs 51 per share, the highest so far.
The company is continuing its shift towards an AI-driven operating model, supported by strong deal activity. CEO Mohit Joshi said artificial intelligence is being integrated across service offerings, with the company recording its strongest deal wins in recent years, including back-to-back quarters with deal bookings exceeding $1 billion.
Should you buy, sell, or hold?
Live Events
Goldman Sachs has maintained a Sell rating on Tech Mahindra, while revising its target price upwards to Rs 1,410 from Rs 1,340, implying a downside of 4% from current levels. The brokerage said Q4 performance was largely in line with expectations, supported by stable growth. It highlighted strong deal wins and continued improvement in margins. However, it expects FY27 revenue growth to remain modest at around 3.9%. Despite the ongoing turnaround, valuations are seen as expensive compared to peers, with the stock trading at about 18x FY27 estimated earnings.
Motilal Oswal has maintained a Buy rating on Tech Mahindra with a target price of Rs 1,750, indicating an upside of around 20%. The brokerage highlighted early signs of a turnaround in the communications vertical, supported by a large deal in Europe, which strengthens confidence in the company’s medium-term growth outlook. It added that the ongoing restructuring under the new leadership is progressing well, with the latest quarter marking another step in the right direction. The brokerage continues to remain positive on Tech Mahindra’s bottom-up turnaround story.
HDFC Securities has maintained its Add rating on Tech Mahindra with an unchanged target price of Rs 1,510. The brokerage noted that deal momentum remained strong, with FY26 total contract value at $3.8 billion. The company’s AI-led capabilities and large deal wins are expected to support growth going forward. It is targeting better-than-industry growth along with a 15% EBIT margin in FY27. The stock is valued at 17x FY28 estimated earnings.
JM Financial has maintained its Add rating on Tech Mahindra with a target price of Rs 1,555. The brokerage noted that industry growth is expected to be in the range of 2-4% or 3-5%, with Tech Mahindra likely to outperform the broader sector. It added that a decent exit rate, along with a healthy deal TCV, provides comfort on FY27 revenue growth. Management continues to remain cautious on large deals, with a clear focus on ensuring they are accretive at the portfolio level. It also highlighted that there were no decision delays in February or March due to noise around Gen AI.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)