Q3 Results impact: RBL Bank shares fall 7%, biggest single-day loss since Dec 2024; Tech Mahindra up 3%

Q3 Results impact: RBL Bank shares fall 7%, biggest single-day loss since Dec 2024; Tech Mahindra up 3%

• Tech Mahindra shares rose 3.3% after beating Q3 revenue estimates
• RBL Bank fell 7.1% on missing Q3 profit forecast, steepest drop since Dec 2024
• Emirates NBD agreed to buy 60% stake in RBL Bank for $3 billion

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Tech Mahindra shares rose 3.3% after surpassing third-quarter revenue expectations, while RBL Bank fell 7.1% on missing quarterly forecast.

RBL Bank falls 7%

RBL Bank shares are set to fall most in more than a year on Q3 net profit miss by declining over 7% to Rs 301.3 apiece, steepest single-day drop since December 20, 2024.

The private lender reported lower-than-expected Q3 net profit, as it cut provisions for bad loans, other contingencies by 46%, reported Reuters.

In October, Emirates NBD agreed to buy 60% stake in RBL Bank for $3 billion, in India's financial sector's one of largest ever cross-border acquisitions

Emkay expects RoA to gradually improve to 1%-1.3% as pressure from unsecured retail loans eases, with NBD deal providing additional boost through lower funding costs, firmer growth

So far in 2026, the stock fell 4.2%.

Tech Mahindra rises on higher Q3 profit

Shares of Tech Mahindra rose 3.3% to Rs 1,725.5 apiece on January 19 after India's fifth-largest IT firm posted bigger-than-expected third-quarter revenue by rising rose 8.3% to Rs 14,393 crore.

The communications division's revenue, which accounts for a third of the Pune-based company's total, rose 4.7%, while revenue at its manufacturing division - its second-largest, grew the most at 11.7%. Net profit for the quarter increased 14.1% to Rs 1,122 crore, missing analysts' expectations of Rs 1,389 crore as the company took a one-time charge of 2.72 billion rupees due to India's newly enacted labour codes.

Domestic brokerage ICICI Securities gave a "hold" rating for the stock and a price target of Rs 1,600 and said growth was better in a seasonally soft quarter and in the context of muted revenue growth for past several quarters

Domestic brokerage BOB Capital Markets also gave a "hold" rating with a price target of Rs 1,783 and said faster growth in top accounts (greater than $20 million TTM revenue) versus the company average is viewed as a structural strength.

Domestic brokerage Systematix gave a "sell" rating and a price target of Rs 1,367 and said communications vertical continues to be a key growth driver on market share gains and TECHM's full-stack capabilities, with consolidation opportunities in Europe and Asia and improving US sentiment

The stock is top gainer on Nifty IT index on January 19, which was trading 0.7% lower.

Tech Mahindra stock fell 6.8% in 2025 as against Nifty IT index's 12.6% fall in 2025.