Tech Mahindra Ltd. Surges After Strong Q2 Results

Tech Mahindra shares rallied sharply on October 16, 2026, after the IT services company reported strong second-quarter FY27 results. Consolidated revenue increased 15.6% year-on-year to ₹16,180 crore, while net profit rose 32.7% to ₹1,586 crore. The positive performance lifted investor sentiment and supported a broader rally in Indian IT stocks. The company reported new deal wins worth $1.023 billion during the quarter, marking the fourth consecutive quarter with deal wins exceeding $1 billion. Operating performance also improved, with EBIT margin reaching 14.8%, compared with 14.4% in the previous quarter. The board additionally recommended a 1:1 bonus share issue and declared an interim dividend of ₹15 per share. Going forward, investors will monitor deal execution, revenue growth and margin improvement as Tech Mahindra continues its transformation strategy. The management has maintained its FY27 operating margin target of 15%, while expanding its focus on artificial intelligence, cloud services and digital transformation. Sustained deal conversion and demand from global clients will remain key factors influencing the stock’s performance.