Tech Mahindra stock rises over 5% after Q2 profit jumps 33%

Tech Mahindra shares surged more than 5% on Friday, October 16, after the company posted a 32.7% year‑on‑year rise in Q2FY27 net profit to ₹1,585.6 crore. The rally made the stock the top gainer on the Nifty 50 while the broader market slipped about 0.2%, with the Sensex and Nifty lower. The share price touched an intraday high of ₹1,738.40 on the BSE.## Market Reaction The Nifty IT index climbed nearly 2% as peers such as Infosys, Wipro and TCS also rose 3‑4%. Tech Mahindra remains about 6% below its 52‑week high of ₹1,850 recorded in February 2026 and above its March low of ₹1,304.25.## Financial Highlights Consolidated net profit rose to ₹1,585.6 crore from ₹1,194.5 crore a year earlier. Revenue grew 15.6% to ₹16,180.2 crore, while EBITDA increased 32.8% to ₹2,878.5 crore. The board approved an interim dividend of ₹15 per share (300% of face value) and a 1:1 bonus issue pending shareholder approval.## Operational Update Management said the company secured deals worth more than $1 billion in each of the last four quarters and posted constant‑currency revenue growth of 7.2% YoY. CEO Mohit Joshi highlighted strong customer relationships, while CFO Rohit Anand noted margin expansion for the 12th straight quarter and stressed AI‑driven productivity gains. AI initiatives this quarter included Zero Gravity Telco Architecture, a partnership with SpaceXAI, and the launch of the Indus Terra 30‑billion‑parameter LLM with Nvidia and AWS under the IndiaAI Mission. Additional collaborations covered Google Cloud Gemini workshops for 12,500 employees, ServiceNow’s AI Platform, Cisco cybersecurity, Wandelbots automation, Rezolve AI commerce and Uniphore enterprise AI.## Analyst Views Kotak upgraded to buy, raising its target to ₹1,870. Jefferies moved to hold with a target of ₹1,540 and expects 6% constant‑currency revenue CAGR. Choice Broking gave an add rating with a ₹1,775 target. Nirmal Bang remained sell, citing challenges to sustain growth, and set a target of ₹1,222. Nomura kept a neutral stance, seeing limited upside despite large telecom deals and broader vertical expansion.## Context Strong earnings and AI investments are helping Tech Mahindra improve margins and compete for high‑value telecom contracts, a trend seen across India’s IT sector as firms chase AI‑driven services.