Investors Advised to Consider Tech Mahindra Amid Bullish Projections

Tech Mahindra Posts Modest Q4FY26, Maintains Strong Deal Wins Momentum

Tech Mahindra, a leading IT services company, has reported a modest fourth quarter (Q4) of fiscal year 2026 (FY26), with revenue and margin broadly in-line with expectations, albeit marginally below estimates. The standout highlight of the quarter was the continued strength in deal wins, driven by large transformation engagements and the growing demand for AI-led solutions.

Deal Wins Remain Strong, Supported by BFSI Growth

Deal wins remained a key driver of growth for Tech Mahindra in Q4FY26, with the BFSI (Banking, Financial Services, and Insurance) sector leading the charge. The company's strong AI-led deal pipeline and scope expansion opportunities within existing accounts have set the stage for a cautiously constructive outlook in fiscal year 2027 (FY27). In the near term, revenue ramp-up from deal wins will be a key monitorable for investors.

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FY26–FY29E Growth Projections

We project Tech Mahindra's Revenue, EBIT (Earnings Before Interest and Taxes), and PAT (Profit After Tax) to grow at a CAGR (Compounded Annual Growth Rate) of 8.0%, 19.0%, and 20.6% respectively over FY26–FY29E.

Maintaining BUY Rating with a Target Price of INR 1,700

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Given the company's strong growth prospects and outlook, we maintain our BUY rating with a target price of INR 1,700, taking a long-term view.