Major brokerages have issued mixed but generally positive recommendations for Tech Mahindra following its strong Q1 FY27 performance. HDFC Securities maintains an Add rating with a target price of ₹1,650, while Prabhudas Lilladher recommends a buy rating with ₹1,780 target price. Now, ICICI Securities has joined the bullish sentiment, upgrading its rating to Hold with a target price of ₹1,470 in its latest report dated July 17, 2026. The brokerage values the company at 18x P/E on FY28E EPS of ₹82, upgrading from its earlier Reduce rating.
The IT major's Q1 FY27 performance exceeded expectations, with revenue growth of 2.6% QoQ in constant currency terms and Ebit margin expansion to 14.4%. As reported by NDTV Profit, HDFC Securities raised its earnings estimates by 4-5% and increased its target price to ₹1,650 from ₹1,500, while maintaining an Add rating. The beat was aided by earlier-than-expected ramp-up of a large European automotive engagement, with quarterly TCV of USD 1.08 billion taking LTM deal wins to a record USD 4.06 billion (+37.5% YoY). Prabhudas Lilladher has revised its FY27E/FY28E CC revenue growth estimates to 6.0%/5.4% and increased EBIT margin estimates to 14.8%/15.1%, resulting in an EPS upgrade of ~2.2% for both FY27E and FY28E.
With healthy revenue growth of 6.6% YoY CC in Q1FY27, Tech Mahindra is positioned to deliver the highest revenue growth among top 5 Indian IT companies in FY27, according to ICICI Securities. The company is supported by sustained strong deal TCV momentum and scale-up in large accounts, having scaled 4 accounts to USD 50mn+ annual revenue in Q1FY27. While Q2FY27 may face headwinds from reversal of 1-1.3% positive one-time impact from early ramp-up in European auto client, this is expected to be offset by ramp-up of large communication deal announced in Q4FY26 and healthy growth momentum in key focus verticals. The company has consistently expanded margins supported by disciplined execution.
