Nomura has maintained its ‘Buy’ rating on Tech Mahindra with a target price of ₹1,810, saying that the company continues to work its way through a strategic repair phase, with better revenue growth anticipated in FY26 compared to FY25.
In Q1FY26, Tech Mahindra reported net profit of ₹1,141 crore, down 2.2% QoQ, and revenue of ₹13,351 crore, marginally lower than Q4FY25. EBIT rose to ₹1,477 crore, with margins improving to 11.1%, giving investors a silver lining amidst otherwise muted headline numbers.
Nomura acknowledged that deal wins and the pipeline remain strong, and expects these to drive sequential growth from Q2 onwards. The brokerage slightly revised down its FY26–27 EPS estimates by 1–2%, noting that execution on cost control and delivery will be key in the coming quarters.
At 21.3x FY27F EPS, the stock still offers room for upside, particularly as the company stabilizes its core operations and ramps up large new projects.
