Tech Mahindra: Strong performance

Research evidence excerpt

Tech Mahindra: Strong performance

Idea

July 16, 2026 06:29 PM GMT

Morgan Stanley India Company Private Limited+MTech Mahindra | Asia Pacific Gaurav Rateria

Equity Analyst

Strong performance Gaurav.Rateria@morganstanley.comSulabh Govila, CFA +91 22 6118-2237

What’s Changed Sulabh.Govila@morganstanley.com +91 22 6118-2249

Shreshtha Chopra

Tech Mahindra Limited (TEML.NS) From To Research Associate

Price Target Rs1,160.00 Rs1,270.00 Shreshtha.Chopra@morganstanley.com +91 22 6118-2227

Sakshi Rana

Strong revenue beat in 1Q, robust deal wins and commentary of ResearchSakshi.Rana@morganstanley.comAssociate +91 22 6118-1002

sustained momentum in 2Q, reiteration of EBIT margin outlook

for F27 are all key positives. We see near-term PE multiples

holding up but a risk of de-rating once EBIT margins normalize

and revenue growth gets aligned to peers.

Tech Mahindra Limited (TEML.NS, TECHM IS)

Key Takeaways India Technology | India

Within large caps, Tech M has delivered the best revenue growth in 1QF27. Stock Rating Underweight

Industry View In-Line

Mgmt commentary alluded to momentum sustaining near term, thereby giving Price target Rs1,270.00

Up/downside to price target (%) (16)

confidence of 5%+ YoY cc growth in F27 on our estimates. Shr price, close (Jul 16, 2026) Rs1,510.30

52-Week Range Rs1,854.00-1,304.10

Reiterated EBIT margin of 15%, requiring strong execution in coming quarters Sh out, dil, curr (mn) 889

given wage hikes ahead from 2Q onward. We estimate a slightly lower margin of Mkt cap, curr (mn) US$13,957

Avg daily trading value (mn) US$33.3

14.8%

Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

At 19x F28 PE the stock is at a premium to even LTIM (highest revenue growth EPS (Rs)** 57.27 72.95 80.88 84.27

within large caps), making risk reward unfavorable.