According to reports from NDTV Profit, HDFC Securities has raised target prices for six stocks following the September-quarter earnings season. The brokerage increased target prices for Tech Mahindra to ₹1,800 from ₹1,660, retaining its 'Add' recommendation. The revised target suggests approximately 9% upside from the stock's reference price of ₹1,650. Now, Motilal Oswal has joined the bullish sentiment, recommending a buy rating with a target price of ₹1,950 in its research report dated October 15, 2026, maintaining a PE multiple of 20x. Recent market data shows consensus share price target of ₹1,705 with the stock trading at ₹1,772.80, representing a downside of -3.81% from the consensus target. As per The Financial Express, Nuvama also maintains a 'Buy' rating with a target price of ₹1,950, implying an upside of 10% from the current price of ₹1,773. Nomura has raised its price target to ₹1,650 from ₹1,640, though it maintains a 'Neutral' stance. However, ICICI Securities has adopted a more cautious stance, maintaining a HOLD rating with a target price of ₹1,590 in its research report dated October 16, 2026, citing the stock's premium valuation at 19.5x on FY28E EPS which is approximately 40% premium to TCS and INFO.
As reported by NDTV Profit, Tech Mahindra delivered a broad-based earnings beat in Q2 FY27, with constant-currency revenue growing 2.4% sequentially and 7.2% year-on-year. The company's operating margin expanded by 34 basis points sequentially to 14.8%, marking the company's 12th consecutive quarter of margin improvement. The figure is now close to management's FY27 target of 15%. According to Prabhudas Lilladher's latest report, Q2FY27 revenue growth of 2.4% QoQ CC was ahead of estimates of 1.2%, while EBIT margin expanded 40bps QoQ to 14.8%, beating estimates of 14.4%. The margin improvement was driven by strong volume growth and Project Fortius savings, which more than offset wage-hike impact. Latest financial data shows Q2 net profit jumped 8.2% QoQ to ₹1,585.6 crore, driven by lower finance costs, with the company demonstrating sustained operational efficiency. As per The Financial Express, Tech Mahindra's consolidated profit rose 32.7% year-on-year to ₹1,585.6 crore against ₹1,194.5 crore reported in the year-ago period, while revenue from operations stood at ₹16,180 crore, rising 15.6% YoY from ₹13,994.9 crore. On a sequential basis, bottom line expanded 6.6% from ₹1,486.3 crore reported in the trailing quarter.
As reported by Prabhudas Lilladher, Tech Mahindra demonstrated robust deal momentum with quarterly TCV of USD 1.02bn and LTM deal wins of US$4.27bn (+34.8% YoY), further strengthening revenue visibility. Revenue growth was led by Communications (5.8% QoQ), supported by the ramp-up of large deals, while Retail & Logistics grew 9.5% QoQ. However, Manufacturing declined 3.8% QoQ following accelerated execution of a large European automotive program in Q1. Management reiterated confidence in delivering revenue growth above peers' average in FY27E, supported by a healthy order book and timely deal ramp-ups. Prabhudas Lilladher has revised FY27E/FY28E constant-currency revenue growth estimates upward to 7.0%/5.8% from 6.0%/5.4% respectively, while keeping FY29E growth estimates unchanged. As per The Financial Express, Nuvama noted that the company's four straight quarters of huge deal wins of over $1 billion positions it well to beat all its large-cap peers on growth in FY27, with margins likely to reach close to its 15% target. ICICI Securities highlights that Tech Mahindra reported strong performance on all fronts, growing at 7%+ YoY vs. 2-3% YoY growth for larger peers, with strong growth in top strategic clients contributing more than USD 20mn+ annual revenue run-rate (3.1% QoQ and 11.7% YoY). The brokerage notes broad-based healthy growth across verticals, consistent margin expansion, as well as healthy upward trend in revenue per employee (up 8% YoY on TTM basis).
According to Prabhudas Lilladher's latest analysis, the brokerage has raised EBIT margin estimates to 15.0% (earlier 14.8%) for FY27E, supported by wage hike normalization, Project Fortius and operating leverage. While continued normalization of the automotive program is expected to weigh on Manufacturing revenue in Q3, this should balance against Comviva seasonality. On margins, with wage hikes impact behind, Project Fortius and operating leverage should support further expansion in H2, partly offset by continued investments in AI capabilities and talent. The continued normalization of the automotive program is expected to weigh on Manufacturing revenue in Q3 to a small extent, which should balance against Comviva seasonality. As per The Financial Express, Motilal Oswal expects 7% compounded annual growth rate over FY26 to FY28 in dollar terms, reflecting stronger-than-expected execution, healthy deal ramp-ups, and improving growth visibility. The brokerage expects 15.1%/15.3% EBIT margin estimates for FY27/28, implying a 20bp/50bp expansion against earlier margin estimates, while keeping FY27 EPS estimates slightly lower. ICICI Securities projects Q3FY28-Q2FY29E EPS of ₹89 and rolls forward by two quarters to arrive at a revised target price of ₹1,590 with an unchanged target multiple of 18x. The brokerage notes that TechM is on path to deliver industry-leading growth among large caps in FY28 as well.
According to reports from NDTV Profit, HDFC Securities remains constructive on select companies benefiting from strong deal wins, improving margins and healthy loan growth. However, the brokerage flagged risks including weak near-term demand, asset quality concerns and cost pressures. The firm maintained its existing ratings on all six stocks while revising its earnings estimates and valuations based on the latest quarterly results. Motilal Oswal maintains its BUY rating while raising the target price to ₹1,950 from ₹1,900, citing the Q2 beat on revenue and margins, robust deal momentum and improving growth visibility. As per The Financial Express, Motilal Oswal expects the IT major's revenue to grow 11.7% YoY in the second half of FY27 and adjusted net profit to rise 44.7%, with the brokerage believing the company could emerge as the growth leader among the large-cap peers. The ongoing turnaround under new leadership continues to track well, with the company within reach of its FY27 EBIT margin goal of 15%. Nuvama expects Tech Mahindra to report a strong earnings CAGR of 25% over the next two years, placing it well to deserve valuations similar to LTIMindtree rather than top-three large caps. In 1HFY27, Tech Mahindra demonstrated strong performance with revenue/EBIT/adj. PAT growing 16.6%/46.4%/30.6% YoY respectively, while management expects continued growth momentum in 2HFY27 with revenue/EBIT/adj. PAT projected to grow 11.7%/28.7%/44.7% YoY. However, ICICI Securities maintains a more cautious stance, maintaining HOLD despite acknowledging that TechM is trading at 19.5x on FY28E EPS (~40% premium to TCS and INFO) and noting the company is on path to deliver industry-leading growth among large caps in FY28 as well.
