Goal: ₹1,693
CMP: ₹1,459.10
Tech Mahindra has reported income of ₹13995 crore (up 4.8 per cent q-o-q; up 5.1 per cent y-o-y in INR phrases; up 1.4 per cent q-o-q, down 0.2 per cent y-o-y in USD phrases; and up 1.6 per cent q-o-q, down 0.3 per cent y-o-y in CC phrases).
EBIT margin expanded 108 bps q-o-q to 12.1 per cent, supported by effectivity features, SG&A optimisation, and improved fixed-price mission productiveness. New deal TCV stood at $816 million versus $603 million in Q2FY25, indicating robust deal momentum. Whole headcount elevated by 4,197 q-o-q to 1,52,714 workers, with attrition up 20 bps q-o-q to 12.8 per cent and utilisation down 60 bps q-o-q to 84.4 per cent. Shopper spending stays selective, with discretionary price range nonetheless below stress throughout key industries.
Administration highlighted regular progress in its three-year transformation plan, supported by stronger deal momentum and bettering margins. Focus continues on scaling core verticals similar to communications, manufacturing and BFSI, whereas increasing AI-led and automation-driven capabilities. Latest initiatives below the IndiaAI programme and the launch of TechM Orion have strengthened positioning in enterprise AI.
We keep Purchase Score on the inventory with revised goal worth of ₹1,693 (₹1,821 earlier) at PE of 21x (vs 22x earlier) on Sep’27E EPS. The lower in goal a number of from 22x to 21x displays an anticipated delay within the tempo of income restoration relative to business development.
Printed on October 15, 2025
