Tech Mahindra Q2 Review — Motilal Oswal Maintains 'Buy' On The Stock; Sees 29% Upside Potential

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Motilal Oswal Report

Tech Mahindra Ltd. reported Q2 FY26 revenue of $1.6 billion, up 1.6% QoQ in constant currency vs our estimate of 1.0% CC growth. Retail/Manufacturing/BFSI grew 9.0%/5.3%/3.8% QoQ, whereas communications/others fell 2.0%/8.8% QoQ (in USD terms).

Ebit margin was up 100bp QoQ at 12.1%, beating our estimate of 11.6%. PAT stood at Rs 11.9 billion (up 4.7% QoQ/down 4.4% YoY), below our estimate of Rs 13 billion.

In INR terms, revenue/Ebit/PAT grew 4.0%/33.3%/11.1% in H1 FY26 YoY. In H2 FY26, we expect revenue/Ebit/PAT to grow by 8.3%/34.7%/39.0% YoY.

We reiterate Buy on Tech Mahindra with a target price of Rs 1,900 (implying 29% upside), based on 23x Jun’27E EPS.

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