Tech Mahindra posted a stronger-than-expected profit in Q4FY25, with net profit rising 18.7% QoQ to ₹1,166.7 crore, beating estimates. This came despite modest revenue growth of 0.7% QoQ to ₹13,384 crore, while EBITDA grew 2.1% to ₹1,378 crore, lifting EBITDA margin to 10.3% from 10.2% in Q3. The board also recommended a final dividend of ₹30 per share.
Jefferies acknowledged the margin and profit beat, but noted that revenue growth lagged, with the quarter’s topline performance missing expectations. The brokerage appreciated the company’s strong order wins, which may help support growth in FY26. However, it also flagged concerns about the ambitious margin expansion target of 530 basis points over FY25–27, especially after already achieving a 210bps improvement in FY25.
Jefferies believes the recent progress is already priced in, as the stock trades at 27x FY26 P/E — a 20% premium to Infosys. The brokerage reiterated its ‘Underperform’ rating with a target price of ₹1,260, citing limited upside at current valuations and the need for more consistent revenue momentum.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please consult a certified financial advisor before making investment decisions.
