Investors are advised to focus on FY27 growth outlook versus peers, Communications vertical recovery, demand trends in BFSI and manufacturing segments, AI-led productivity impact and progress toward the 15 per cent margin target.
Brokerages estimate Tech Mahindra’s EBIT margin to increase 25-50 basis points (bps) in the June-ending quarter, led by delivery efficiencies, cost optimisation and gross margin improvements.Equirus Research expects margins to improve by 4 2bps on a sequential basis, largely led by initiatives like Project Fortius and currency benefits to be partly compensated by investments. Further, Motilal Oswal Financial Services estimates margin improvement of up to 50 bps on a quarterly basis to 14.3 per cent. Meanwhile, Kotak Institutional Equities (Kotak) said the EBIT margin will even absorb a 20 bps headwind from compensation realignment, resulting from the change in labour code provisions in India.“We expect management to maintain 15 per cent FY27 margin guidance. We will watch out for management comments on FY27 revenue, margin guidance and their progress,” said Nuvama Research.Revenue growthAnalysts foresee revenue to increase around 1 per cent sequentially. The growth will be supported by ramp-up of a large telecom deal and broad-based growth across verticals and partly offset by weakness in Hi-Tech due to cautious discretionary spending, as per Choice Institutional Equities (Choice). “BFSI should remain healthy, while manufacturing is likely to stay stable despite weakness in US auto,” said Choice in its research note.Meanwhile, net profit will be impacted by a $30 million forex loss, according to Kotak.“The company has stopped incremental hedging. There could be another quarter or two of losses from earlier hedges before it winds down and P&L moves closer to spot FX rates,” said the brokerage firm.Healthy TCVExperts also expect the tech firm to deliver a healthy deal momentum for the quarter of $0.9-1 billion, lower than the preceding two quarters but healthy growth on an on-year basis.Investors are advised to focus on FY27 growth outlook versus peers, Communications vertical recovery, demand trends in BFSI and manufacturing segments, AI-led productivity impact and progress toward the 15 per cent margin target.“The financial services vertical has underperformed and will be a focus segment; and the mindshare in AI seems lower than peers,’ said Kotak, adivsing an eye on company measures to fix the narrative.Published on July 15, 2026
