TechM shares jump 4%, top Sensex gainers; more upside ahead?
TechM Q3 results: Nomura India said TechM posted constant currency (CC) revenue growth of 1.7 per cent QoQ, ahead of its estimate of 1 per cent QoQ and the consensus estimate of 0.7 per cent.
- Jan 19, 2026,
- Updated Jan 19, 2026 9:46 AM IST
Tech Mahindra Ltd (TechM) jumped 4 per cent and was Sensex's top gainer in Monday's trade following the IT major's December quarter results. The IT major beat Q3 results on revenue and margin fronts. Deal wins stayed for the fifth quarter, offering growth visibility. Analysts said the deal pipeline remained strong, as the IT firm aims for better-than-peer growth in FY27.
At 9.35 pm, TechM was up 3.8 per cent at Rs 1,734.05 apiece on BSE. This is even as the becnhmark BSE Sensex was down 437 points, or 0.5 per cent, at 83,141.05.
Nomura India said TechM posted constant currency (CC) revenue growth of 1.7 per cent QoQ, ahead of its estimate of 1 per cent QoQ and the consensus estimate of 0.7 per cent. The brokerage added that EBIT margin at 13.1 per cent came in above both Nomura’s estimate of 12.7 per cent and the consensus estimate of 12.7 per cent.
"We tweak FY26F-28F EPS by 3 per cent to factor in the 3QFY26 results and higher revenue and margin assumptions for FY27-28F. We raise our target marginally to Rs 1,810 (from Rs 1,750), set at an unchanged 23 times 1H FY28F EPS. TechM currently trades at 22.2 times FY27F EPS of Rs 75.30," it said.
The IT expects a positive exit for Q4, and said seasonality will weigh on Q1FY27, where growth pressure will be seen. MOFSL said it believes 15 per cent EBIT margin for FY27 is now within sight. It believes the TechM's focus may now shift to growth.
"The setup looks good: return of large deals, healthy deal TCV, telecom bottoming out – they are all positive signs. We believe large deal conversion is the key monitorable," it said.
This brokerage continued to like TechM as bottom-up turnaround story. It valued Tech Mahindra at 26 times FY28 earnings with a target of Rs 2,350 (41 per cent upside).
Nirmal Bang said TechM's Q3 results demonstrated continued progress in the company's transformation journey initiated under the leadership of CEO Mohit Joshi. While margin expansion is encouraging, sustained growth acceleration, particularly in the telecom vertical is crucial for a more positive outlook, it said.
"Under the new leadership, the company's focus on acquiring high-quality clients, its aggressive Gen AI strategy, its commitment to operational efficiency through Project Fortius, and focus on large deals are positive factors," it said while suggesting a target of Rs 1,792.
Tech Mahindra Ltd (TechM) jumped 4 per cent and was Sensex's top gainer in Monday's trade following the IT major's December quarter results. The IT major beat Q3 results on revenue and margin fronts. Deal wins stayed for the fifth quarter, offering growth visibility. Analysts said the deal pipeline remained strong, as the IT firm aims for better-than-peer growth in FY27.
At 9.35 pm, TechM was up 3.8 per cent at Rs 1,734.05 apiece on BSE. This is even as the becnhmark BSE Sensex was down 437 points, or 0.5 per cent, at 83,141.05.
Nomura India said TechM posted constant currency (CC) revenue growth of 1.7 per cent QoQ, ahead of its estimate of 1 per cent QoQ and the consensus estimate of 0.7 per cent. The brokerage added that EBIT margin at 13.1 per cent came in above both Nomura’s estimate of 12.7 per cent and the consensus estimate of 12.7 per cent.
"We tweak FY26F-28F EPS by 3 per cent to factor in the 3QFY26 results and higher revenue and margin assumptions for FY27-28F. We raise our target marginally to Rs 1,810 (from Rs 1,750), set at an unchanged 23 times 1H FY28F EPS. TechM currently trades at 22.2 times FY27F EPS of Rs 75.30," it said.
The IT expects a positive exit for Q4, and said seasonality will weigh on Q1FY27, where growth pressure will be seen. MOFSL said it believes 15 per cent EBIT margin for FY27 is now within sight. It believes the TechM's focus may now shift to growth.
"The setup looks good: return of large deals, healthy deal TCV, telecom bottoming out – they are all positive signs. We believe large deal conversion is the key monitorable," it said.
This brokerage continued to like TechM as bottom-up turnaround story. It valued Tech Mahindra at 26 times FY28 earnings with a target of Rs 2,350 (41 per cent upside).
Nirmal Bang said TechM's Q3 results demonstrated continued progress in the company's transformation journey initiated under the leadership of CEO Mohit Joshi. While margin expansion is encouraging, sustained growth acceleration, particularly in the telecom vertical is crucial for a more positive outlook, it said.
"Under the new leadership, the company's focus on acquiring high-quality clients, its aggressive Gen AI strategy, its commitment to operational efficiency through Project Fortius, and focus on large deals are positive factors," it said while suggesting a target of Rs 1,792.