Tech Mahindra is awarded a ‘Buy’ rating by brokerage analysts, along with a target price of ₹1,620 implying an expected upside of 10%. The bullish stance has been backed by record Q3FY26 bookings at $1.1 billion, deal wins, and the reaffirmation of FY27 targets, inclusive of a 15% EBIT margin, based on AI modernization potential.
Analysts Give Tech Mahindra a Buy Call and Set Target Price ₹1,620:
Analysts have recommended a positive ‘Buy’ rating for Tech Mahindra with a target price of ₹1,620 per share. This suggests that there is a possibility of 10% upside, as the company has been doing well both on the current and future growth front. Tech Mahindra works in IT Services and Business Process Outsourcing segment.
Record Bookings and Deals Wins Make Up the Current Positive Stance:
The company has recorded strong Q3FY26 numbers, where its quarter bookings stood at $1.1 billion marking a year-on-year increase of 48% LTM deals wins. Management has stated that there would be many AI modernization chances for the company for the coming two to three years, especially in financial services, and healthcare where considerable customization of software takes place.
Contract Win Makes Tech Mahindra More Confident About Reaching 15% EBIT Margin Target in FY27:
Another important development has been that Tech Mahindra has won an important five-year contract worth more than $500 million from a prominent telecom company in Europe. Along with increasing involvement in big-ticket contracts, it means increasing customer trust and increased market presence for Tech Mahindra. Tech Mahindra’s leadership continues to aim for FY27 with an objective of growing ahead of industry growth rates along with a 15% EBIT margin target.
Prospects of Future Profitability and Growth:
Tech Mahindra is expected to see continuing profit improvement with its commitment to a 15% EBIT margin in FY27. This view is underpinned by continued productivity gains, efficient operations, and revenues visibility.
