Tech Mahindra shares rise 5% after Q2 results as profit grows 33%

Tech Mahindra shares rose as much as 5% to ₹1,736 on the BSE on October 16 after the company reported higher profit and revenue for the second quarter of FY27. Net profit increased 32.7% year on year, while revenue grew 15.6%.

The results put the company's revenue growth, margins and large deal wins in focus as investors assess its business outlook.

Tech Mahindra Q2 results: Key numbers

Financial metric	Q2 FY27	Year on year change
Net profit	₹1,585.6 crore	Up 32.7%
Revenue	₹16,180.2 crore	Up 15.6%
EBITDA	₹2,878.5 crore	Up 32.8%
Share price high	₹1,736	Up around 5%

Net profit was ₹1,194.5 crore in the year ago quarter, while revenue stood at ₹13,994.9 crore.

What is driving Tech Mahindra's outlook?

Nomura expects Tech Mahindra to deliver above peer growth in FY27, supported by the ramp up of two large telecom deals won in the second half of FY26 and growth across other business segments.

The company has retained its FY27 target of achieving an average operating margin of 15%. AI led productivity improvements and operational efficiencies under Project Fortius are expected to support margin expansion.

Nuvama highlighted four consecutive quarters of deal wins exceeding $1 billion and expects earnings growth over the next two years. Choice Institutional Equities also pointed to potential productivity gains from AI tools and operational changes.

What should investors watch?

The main factors to track are revenue growth across business segments, new deal wins, operating margins and the company's progress towards its 15% FY27 margin target.

Tech Mahindra's Q2 results showed growth in profit and revenue. Whether this momentum continues will depend on deal execution, demand across its markets and its ability to improve margins.