Shares of Tech Mahindra surged 7% on October 16, becoming the top gainer on the Nifty 50 index after the company reported its September quarter results for FY27 (Q2FY27). The stock rose to ₹1,763.95 per share on the BSE amid a weak broader market, with the Sensex and Nifty trading around 0.2% lower. Tech Mahindra’s consolidated net profit rose 32.7% year-on-year to ₹1,585.6 crore, while revenue increased 15.6% to ₹16,180.2 crore.
The company’s EBITDA jumped 32.8% to ₹2,878.5 crore from ₹2,168 crore a year earlier. The board declared an interim dividend of ₹15 per equity share of face value ₹5, equivalent to 300%, and approved a 1:1 bonus issue, subject to shareholder approval through a postal ballot. Brokerages responded positively, with Jefferies upgrading Tech Mahindra’s rating to hold from underweight and raising its target price to ₹1,540. Motilal Oswal reiterated its buy rating with a revised target of ₹1,950, while Kotak Securities also maintained a buy rating and increased its target price to ₹1,870.
Tech Mahindra’s strong quarterly performance outpaced revenue growth, underscoring an improving growth outlook and a visible turnaround, according to Jefferies. The company’s shares outperformed peers such as Infosys, Wipro, and Tata Consultancy Services, which also saw gains but at lower percentages. Despite this, Citi maintained a cautious stance, keeping a sell rating with a target price of ₹1,355. The stock remains about 5% below its 52-week high of ₹1,850 recorded in February 2026.
The company’s next key event will be the shareholder vote on the 1:1 bonus issue via postal ballot. Tech Mahindra’s interim dividend and bonus share announcement reflect confidence in its financial health following the Q2FY27 results, which were released on October 15, 2026.