Tech Mahindra shares jump over 5% after strong Q2FY27 earnings and dividend payout

Tech Mahindra’s shares rose more than 5% on Friday, making it the top gainer on the Nifty 50 after the company posted a 32.7% jump in Q2FY27 net profit.

Market Reaction

The stock peaked at ₹1,738.40 on the BSE, while the broader Sensex and Nifty slipped about 0.2%. The Nifty IT index climbed close to 2%, lifted by gains in Infosys, Wipro and TCS. Tech Mahindra remains about 6% below its February 2026 52‑week high of ₹1,850 and above its March low of ₹1,304.25.

Management Comments

CEO Mohit Joshi highlighted four consecutive quarters of deals worth over $1 billion each and constant‑currency revenue growth of 7.2%. CFO Rohit Anand said margin expansion continued for a 12th straight quarter and AI spending is boosting productivity. The firm rolled out its Zero Gravity Telco Architecture, a partnership with SpaceXAI, and the Indus Terra 30‑billion‑parameter LLM with Nvidia and AWS under the IndiaAI Mission. Other collaborations include a Consumer Agentic Experience Studio with Google, SAP and Blue Yonder, and AI integrations with ServiceNow, Cisco, Wandelbots, Rezolve AI and Uniphore.

Analyst Views

Kotak upgraded to a buy, raising its target to ₹1,870, while Jefferies moved to hold with a ₹1,540 target and expects 6% constant‑currency revenue CAGR. Choice Broking added an ‘add’ rating and a ₹1,775 target. Nirmal Bang kept a sell call, citing challenges to sustain growth and margins, and set a target of ₹1,222. Nomura retained a neutral stance, seeing limited upside despite large telecom wins.

Context

Strong earnings and new AI projects underline Tech Mahindra’s push to shift from traditional services to higher‑margin, AI‑driven offerings, a trend many Indian IT firms are pursuing to stay competitive.