Tech Mahindra Shares Rally Over 6% After Strong Q2 Deal Wins Beat Expectations
Tech Mahindra shares jump 6.4% following strong Q2 deal wins and revenue beats. CEO Mohit Joshi highlights resilient growth and rising client relationships.
POLICY WIRE — Mumbai, India — Tech Mahindra shares advanced 6.4% on Friday, October 16, after the Indian IT services firm reported better-than-expected quarterly revenue driven by robust new deal wins.
The positive financial results also provided a broader lift to industry peers. Earlier in the session, shares traded up 4.4% at 1,721.90 rupees in early trade before rallying nearly 8% following the release of the Q2 performance metrics.
For the second quarter of fiscal year 2027, Tech Mahindra posted an EBIT of ₹2,387 crores, marking a 40.5% increase year-over-year. Alongside the earnings report, the company board recommended a bonus share issue in a 1:1 ratio.
New deal wins for the quarter reached USD 1,023 million, representing a 25.4% increase compared to the same period last year. This builds on previous momentum that also saw strong performance in the earlier June quarter.
Mohit Joshi, CEO and Managing Director of Tech Mahindra, noted that a year-over-year growth of 6.1% alongside three consecutive quarters of deal wins exceeding $1 billion underscores the operational resilience of the business and the increasing relevance of its solutions.
Joshi also highlighted the deepening of client relationships, pointing out that the company’s client base generating over $50 million grew by seven across all verticals. Following the report, Nuvama raised its target price for the stock to Rs 1,950, citing strong deal momentum, revenue visibility, and margin improvement prospects, while projecting a 25% earnings CAGR over two years.
Reporting by Policy-Wire (PW)
