Tech Mahindra jumps after quarterly profit rises 33%, analysts lift forecasts
The company reported higher second-quarter profit and revenue, while brokerages raised earnings estimates and its board announced a bonus issue.
Key takeaways
- Tech Mahindra’s Q2 net profit rose 32.7% year on year to about ₹1,586 crore.
- Revenue increased 15.6% to ₹16,180 crore, and EBIT margin reached 14.8%.
- The board announced a 1:1 bonus issue and a ₹15-per-share dividend.
Tech Mahindra shares rose after the company reported a 32.7% year-on-year increase in second-quarter net profit to ₹1,586 crore. Revenue grew 15.6% to ₹16,180 crore.
The stock reached ₹1,738.40 on the BSE in early trade, up 5.44% from its previous close, according to Business Standard. As of 04:46 UTC on Friday, it traded at ₹1,770.80, up 7.32% since the previous close.
EBIT rose 40.5% to ₹2,387 crore, and the EBIT margin expanded 260 basis points to 14.8%, Business Standard reported. New deal wins totaled $1,023 million in the quarter, up 25.4% year on year.
The board announced a 1:1 bonus issue and a dividend of ₹15 per equity share. The dividend’s record date is October 23, according to Business Standard.
Systematix raised its FY28 and FY29 earnings-per-share estimates by 3.5% to 5%, while Antique lifted its FY28 and FY29 estimates by 2% to 3%. Tech Mahindra’s management retained its FY27 EBIT margin target of 15%; analysts cited AI-led productivity and deal execution as factors supporting growth and profitability expectations.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
