Tech Mahindra swings sharply after Q4: stock rebounds 7% from lows, but stays under pressure
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Shares of Tech Mahindra staged a sharp recovery on Wednesday after its March-quarter results, bouncing back from early losses triggered by a broader IT selloff following HCLTech’s earnings.
Tech Mahindra's stock fell to a low of ₹1,404.10 in early trade but later rebounded as much as 7% to hit ₹1,502.80, before easing again to trade at ₹1,450-level, below its previous close of ₹1,500.80.
Q4 performance drives volatility
The volatility came after the company reported a steady set of numbers for the March quarter.
Consolidated net profit rose to ₹1,354 crore, while revenue came in at ₹15,076 crore, up 4.7% sequentially. In dollar terms, revenue stood at $1,625 million, marking a modest 0.9% growth QoQ.
Operationally, the company showed improvement, with EBIT rising 10.2% QoQ to ₹2,084 crore, while EBIT margin expanded to 13.8% from 13.1% in the previous quarter, indicating continued margin recovery.
The results were largely in line with Street expectations, with modest revenue growth offset by better-than-expected margin expansion, reinforcing the company’s ongoing turnaround narrative.
Management flags AI-led push, margin discipline
Management commentary remained constructive, with focus on execution and deal momentum. CEO Mohit Joshi said, “We are accelerating our transition to an AI-led organization, embedding AI across services and expanding our capabilities to enhance value delivery for our clients.”
He added that the company has seen “highest deal wins in recent years” and remains on track to deliver on its FY27 commitments.
CFO Rohit Anand highlighted margin performance, saying, “Margins expanded for the 10th consecutive quarter despite a challenging macro environment.”
Dividend, record date announced
The board recommended a final dividend of ₹36 per equity share of face value ₹5 each for FY26, taking the total payout for the year to ₹51 per share, including the interim dividend.
The company has fixed July 3, 2026 as the record date to determine shareholder eligibility for the dividend.
The stock reaction suggests that while the numbers were stable and margins improved, they were not strong enough to offset broader concerns around demand, especially after the recent weakness seen across the IT pack following HCLTech’s results.
The sharp bounce from the day’s low indicates buying interest at lower levels, but the inability to sustain gains above the previous close points to continued caution among investors.
Shares of Tech Mahindra have surged over 6% in the past year, outperforming the benchmark Nifty 50 index, which has risen nearly 1% during the same period.