TECHM

Tech Mahindra reported weak 4% YoY revenue growth in Q1 FY26, with telecom vertical underperforming. Margins remain under pressure at 13%. However, management is pivoting towards AI-driven solutions and enterprise digital transformation. Deal wins are gradually improving, offering medium-term visibility. Valuations at ~17x FY26 EPS are cheaper than peers, making Tech Mahindra a contrarian bet. Investors can accumulate gradually, though patience is needed for a turnaround.