TECH MAHINDRA RESULTS: CAN THE GROWTH CONTINUE IN Q3?

Tech Mahindra has delivered a strong Q2 FY27 performance, with revenue increasing 15.6% YoY to ₹16,180 crore and net profit rising 32.7% YoY to ₹1,586 crore. EBIT margin improved to 14.8%, marking the 12th consecutive quarter of margin expansion. New deal wins of $1.02 billion further strengthen the company's business pipeline. What to Expect Next Quarter? The outlook for Q3 FY27 looks cautiously optimistic. Management expects BFSI growth to recover, while the ramp-up of large deals and continued operational efficiencies could support revenue growth and profitability. The company's focus on AI-led transformation also offers long-term opportunities. However, a slowdown in global IT spending, project-specific headwinds and pressure on traditional IT services remain key risks. Despite strong year-on-year growth, profit fell short of analyst expectations, so execution will be crucial. My View: Tech Mahindra appears to be progressing towards its FY27 margin target of 15%, with improving deal momentum supporting the growth outlook. The next quarter's performance will depend on deal execution, demand recovery and sustained margin expansion. Investors should monitor upcoming results and valuations before drawing conclusions about further upside. Disclaimer: This opinion is for educational purposes only and should not be considered investment advice.