The mood among institutional analysts is broadly positive on the results but divided on valuation.

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Shares of Tech Mahindra were trading at ₹1,530.70 on the National Stock Exchange on Friday morning, up 1.35 per cent or ₹20.40 from its previous close of ₹1,510.30, after the IT major reported its Q1FY27 results on Thursday.The stock opened at ₹1,540 and touched an intraday high of ₹1,562.90, with over 49 lakh shares changing hands by 11.28 am.The current market capitalisation stands at approximately ₹1.49 lakh crore. The stock remains well below its 52-week high of ₹1,854 hit in February 2026.The mood among institutional analysts is broadly positive on the results but divided on valuation.Motilal Oswal, the most bullish among major brokerages, reiterated a Buy with a target price of ₹1,900, calling TechM its preferred large-cap IT pick and raising FY27-28 CC revenue growth estimates to 7.1-7.6 per cent.JM Financial raised its target to ₹1,670 from ₹1,525, hiking its target multiple to 19x on the back of a healthy order book.HDFC Securities bumped its target to ₹1,650, maintaining ADD.Anand Rathi retained BUY with a ₹1,762 target, citing a 23.5 per cent adjusted EPS CAGR over FY26-28.Equirus maintained LONG with a ₹1,700 target citing improving FCF and return ratios.Cautious callsOn the cautious side, Morgan Stanley held its Underweight rating with a target of ₹1,270, flagging de-rating risk once EBIT margins normalise.Jefferies also stayed Underperform at ₹1,260, noting that at 20x PE, valuations look rich despite strong deal wins.Citi maintained a Sell call with a ₹1,345 target, flagging that part of the Q1 beat was aided by one-time revenue and lower SG&A.Nomura and HSBC stayed more measured with Neutral and Buy calls at ₹1,600 and ₹1,635 respectively, acknowledging the beat but pointing to limited near-term upside.Q1 resultsOn the results themselves, Tech Mahindra reported Q1FY27 revenue of $1,660 million, up 2.6 per cent quarter-on-quarter in constant currency terms and 6.6 per cent year-on-year, the strongest growth since the start of its three-year transformation journey.EBIT margin expanded 60 basis points sequentially to 14.4 per cent, marking the 11th consecutive quarter of margin improvement.New deal TCV came in at $1,078 million, up 33.3 per cent year-on-year, the third straight quarter of $1 billion-plus deal wins.Manufacturing led vertical growth at 9 per cent q-o-q, partly aided by accelerated delivery of a European automotive programme, a boost that management acknowledged will not repeat in Q2.Management reiterated its FY27 EBIT margin target of 15 per cent and guided for above-peer revenue growth for the full year, even as wage hikes effective in Q2 and AI investments remain near-term margin headwinds.Published on July 17, 2026