Tech Mahindra Ltd. SHARES FALL UP TO 4% AHEAD OF Q2

Tech Mahindra Ltd. shares fell by up to 4% on October 12 ahead of the company’s board meetings scheduled for later this week, where directors will consider an interim dividend, a bonus issue and the company’s quarterly results. If approved, the proposed bonus issue would mark the first such move by Tech Mahindra in 11 years. The company last issued bonus shares in March 2015, in a 1:1 ratio. The stock also faced pressure amid concerns that clients in its largest business vertical, telecommunications, could face intensifying competition from satellite-based mobile service providers. This could prompt telecom companies to cut costs, potentially affecting demand for IT services. The telecommunications vertical contributed more than 32% of Tech Mahindra’s consolidated revenue in the June quarter. The company also derives over 75% of its revenue from the US and Europe, making developments in these markets particularly significant. Shares of US and European telecommunications companies ended lower on Friday after SpaceX acquired low-band spectrum, fuelling concerns about rising competition from satellite-based mobile services. Meanwhile, Tech Mahindra has maintained a regular dividend payout to shareholders. Its highest-ever dividend was Rs 36 per share, paid in July this year. Over the past three years, the company has distributed a total of Rs 168 per share in dividends. These payouts included interim dividends of Rs 15 per share in October 2024 and October 2025, along with final dividends of Rs 30 in 2025, Rs 28 in 2024 and Rs 32 in 2023.