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Tech Mahindra's Q2 beats estimates, but FY27 growth hinges on big deals

Despite the solid quarterly performance, some brokerages have trimmed their revenue and earnings estimates for the coming quarters, citing a moderation in growth

Tech Mahindra
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The operating profit margin expanded by 110 basis points (bps) to 12.1 per cent — the eighth consecutive quarter of improvement. (Photo: Shutterstock)

Ram Prasad Sahu

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Tech Mahindra’s (TechM’s) July-September quarter (Q2) of 2025-26 (FY26) came in better than Street estimates on both revenue and margin fronts. Deal wins with a total contract value of $815 million were also strong, and the country’s fifth-largest information technology services company is now eyeing the $1 billion mark to meet its growth targets.
 
Despite the solid quarterly performance, some brokerages have trimmed their revenue and earnings estimates for the coming quarters, citing a moderation in growth. The stock, which was marginally down in Wednesday’s trade, has shed over 7.5 per cent in the past three months.
 
TechM reported constant