Hold Tech Mahindra: target of Rs 1600: ICICI Securities

ICICI Securities recommended hold rating on Tech Mahindra with a target price of Rs 1600 in its research report dated January 17, 2026.

Broker Research

January 21, 2026 / 14:59 IST

ICICI Securities's research report on Tech Mahindra

Q3FY26 marks the first quarter of an all-round strong performance in TechM’s turnaround journey, post new CEO, Mr. Mohit Joshi, taking over in Dec’23. Management reiterated its target of outpacing the company’s large cap peers in FY27, banking on: 1) improving deal-win momentum; 2) market share wins – communication likely to enable revenue acceleration in this vertical vs. FY26; and 3) USD 20mn revenue-run-rate accounts growing faster than company’s average, led by higher cross-sell and up-sell potential. TechM reiterated its target of reaching 15% EBIT margin by end FY27, largely led by better gross margins. We raise our EPS estimates by 4%/2% for FY27/28, factoring in the improving growth trajectory.

Outlook

We continue to value TechM at 19x P/E on Dec’27E EPS of INR 84 to arrive at a TP of INR 1,600. Maintain HOLD, as the stock has already re-rated pricing in turnaround in earnings.

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