Tech Mahindra Gets 'Reduce' From ICICI Securities Post Q1 Results With 7% Potential Downside

Over the past four quarters, Tech Mahindra's total contract value has been between $600– 800 million, but QoQ constant currency growth has been between -1.5% to 1% CC, indicating slow revenue conversion. .NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Tech Mahindra Ltd. reported largely in-line revenue growth and a slight beat on margins. Highlights:Growth bouncing back in the telecom vertical.Good margin execution. Strong total contract value at $809 million, up 51% YoY. But the company saw softness in BFSI, which is critical to its turnaround journey and sounded cautious in manufacturing and technology demand. FY26 is supposed to be the year to bridge the growth gap with peers. Over the past four quarters, TCV has been between $600– 800 million, but QoQ constant currency growth has been between -1.5% to 1% CC, indicating slow revenue conversion. Given the slow start to the year, we have built in a modest 2.2% USD FY26 revenue growth- better than Tech Mahindra’s FY25 growth but lower than our expectation for peers. Maintain Reduce with a one-year forward target price of Rs 1,490 on an unchanged target PE of 19 times..Click on the attachment to read the full report:.L&T Tech Q1 Review: Brokerages Split As Morgan Stanley Sees Gradual Recovery But Citi Stays Bearish.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tech Mahindra Gets 'Reduce' From ICICI Securities Post Q1 Results With 7% Potential Downside

FY26 is supposed to be the year to bridge the growth gap with peers, adds ICICI Securities.

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