Buy Tech Mahindra; target of Rs 1964: Anand Rathi

Anand Rathi is bullish on Tech Mahindra has recommended buy rating on the stock with a target price of Rs 1964 in its research report dated January 18, 2026.

Broker Research

January 19, 2026 / 13:08 IST

Buy

Anand Rathi's research report on Tech Mahindra

Tech Mahindra (“TechM”) delivered a healthy performance even in a furlough quarter, with 1.7% q/q growth in CC revenue, 100bps q/q expansion in EBIT margin to 13.1% and TCV crossing $1bn, on the back of a 5-year, $500m European telco modernisation deal (to ramp up from Q1FY27). LTM TCV stood at ~$3.5bn (~48% y/y). IT services grew by 1.3% q/q, while BPO (+2.7% q/q) benefited from seasonality in retail segment. Looking ahead, we expect telecom to drive growth owing to TechM’s expertise across telco value chain spanning networks, software (Comviva) and BPS business, along with meaningful contribution from BFSI, Manufacturing and Retail. While there were apprehensions over TechM’s growth prospects in the past, the company has silenced with an exceptional performance in Q3FY26 across growth, margin and TCV front.

Outlook

We maintain BUY rating on the stock with a TP of Rs1,964, implying FY28 expected P/E of 23.6x.

For all recommendations report, click here