Nomura remains bullish on Tech Mahindra’s ongoing turnaround, reaffirming its ‘Buy’ rating with a target price of ₹1,630. The brokerage highlighted that the company posted a beat on margins in Q4FY25, alongside steady progress on execution and medium-term objectives.
For the quarter, Tech Mahindra reported a net profit of ₹1,166.7 crore, up 18.7% QoQ, and revenue of ₹13,384 crore, rising 0.7% QoQ. EBITDA came in at ₹1,378 crore, up 2.1%, with margins improving slightly to 10.3%. The board declared a final dividend of ₹30 per share.
Nomura noted that deal wins and the pipeline remain strong, lending support to management’s goal of improving operational and financial metrics by FY27. The brokerage believes Tech Mahindra’s cost structure improvements and strategic pivots have laid the groundwork for a sustainable earnings recovery.
With the turnaround gathering momentum and valuation still reasonable compared to large-cap peers, Nomura believes the risk-reward remains favorable.
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.
