Tech Mahindra shares jump 8% after Q2 results, Jefferies upgrades stock

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At 10.32 am, the stock traded 7% higher at 1,764.40 on the NSE after rising to ₹1,776.50 from ₹1,650 previous close

By Madhu Balaji

Updated - October 17, 2026 at 03:10 AM. | Bengaluru

Tech Mahindra shares jumped over 8 per cent after the IT services company reported its September quarter results, with consolidated net profit growth outpacing revenue growth. Brokerages offered mixed views on the stock, with Jefferies upgrading its rating and Motilal Oswal reiterating its buy call, while Citi maintained a sell rating.

Tech Mahindra shares jump

The stock closed at ₹1,790 on the NSE, up 8.48 per cent, after rising to ₹1,797 from ₹1,650 previous close.

Tech Mahindra’s consolidated net profit rose 32.8 per cent year-on-year (y-o-y) to ₹1,586 crore in the second quarter ended September 30, outpacing its 15.6 per cent revenue growth.

The company’s board declared an interim dividend of ₹15 per equity share of face value ₹5 for FY27, equivalent to 300 per cent. It also approved a 1:1 bonus issue, subject to shareholder approval.

Jefferies upgraded Tech Mahindra to hold from underweight and raised its target price to ₹1,540 from ₹1,260. The brokerage said the company’s growth outlook was improving and its turnaround was becoming more visible.

Citi remained cautious despite noting that the results were slightly better than anticipated. The brokerage maintained its sell rating on Tech Mahindra with a target price of ₹1,355.

Kotak Securities maintained its buy rating and raised its target price to ₹1,870.

Motilal Oswal reiterated its buy rating, with a revised target price of ₹1,950, implying 18 per cent upside. The brokerage said the turnaround under the new leadership continued to progress well and that the company was within reach of its FY27 earnings before interest and taxes (EBIT) margin goal of 15 per cent.

Motilal Oswal expects Tech Mahindra to potentially emerge as a growth leader among large-cap peers. It built in around 7 per cent US dollar compound annual growth rate (CAGR) over FY26-28, reflecting stronger-than-expected execution, healthy deal ramp-ups and improving growth visibility. It also raised its FY27 and FY28 EBIT margin estimates to 15.1 per cent and 15.3 per cent, respectively.

Choice Institutional Equities maintained its add rating on Tech Mahindra and retained its target price of ₹1,775, valuing the stock at 18 times average FY28/29 earnings per share (EPS). The brokerage cited improving growth visibility and AI-led productivity as key positives.

Published on October 16, 2026

Companies to follow

• Tech Mahindra Ltd

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