Tech Mahindra stock falls today after Q2 results draw mixed reaction; Nomura, CLSA bullish, Jefferies cautious

Tech Mahindra shares fell as much as 1.6 percent in the opening trade on Wednesday after the company’s Q2 results drew a range of brokerage reactions -- from bullish calls by Nomura and CLSA to cautious stances by Jefferies and Morgan Stanley. Tech Mahindra stock fell to a low of Rs 1,445 in the opening trade, before partially recovering.

Earlier, on Tuesday, the stock closed 1.2 percent higher at Rs 1,468.90 on the NSE ahead of the earnings announcement.IT services major Tech Mahindra reported a 4.5 percent year-on-year decline in consolidated net profit to Rs 1,195 crore for Q2 FY26, largely because of the absence of a one-time gain from land sale in the year-ago period. Revenue from operations rose 5.1 percent to Rs 13,995 crore, aided by strength in its banking and manufacturing verticals. Sequentially, both net profit and revenue grew by 4.7 percent and 4.8 percent, respectively. The company declared an interim dividend of Rs 15 per share, with record date set for October 21.

• Also read | Tech Mahindra Q2 net profit falls 4.5%; IT firm declares Rs 15 interim dividend

Brokerages offered a mixed outlook on Tech Mahindra stock following the Q2 FY26 results.

• Nomura issued a ‘buy’ rating with a target price of Rs 1,670 per share, noting a good performance across parameters and steady progress in Tech Mahindra’s ongoing three-year turnaround.
• CLSA gave a ‘high-conviction outperform’ call, though it trimmed its target to Rs 1,695, citing strong margin performance and improving visibility on its FY27 EBIT target of 15 percent.
• Jefferies, however, has an ‘underperform’ rating with a target of Rs 1,270, saying the margin and revenue trajectory was in line but profit was hit by foreign exchange losses. It expects strong deal wins to support the second half of FY26 but sees FY27 growth recovery as unlikely.
• Morgan Stanley, with an ‘underweight’ call and a Rs 1,555 target, said deal momentum and margin gains were positives but weak deal conversion and macro headwinds could constrain growth.

The stock currently trades at around 18 times FY27 estimated earnings, and brokerages remain divided on whether the turnaround progress justifies a re-rating.

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