Tech Mahindra shares gain 5% after Q2 results. Should you buy, sell or hold the stock?

Tech Mahindra's shares saw a 5% increase on Friday, reaching a high of Rs 1,736 on the BSE. This surge came after the company reported a 32.7% year-on-year increase in consolidated net profit attributable to owners, reaching Rs 1,585.6 crore in Q2FY27. Revenue from operations grew 15.6% YoY to Rs 16,180.2 crore, up from Rs 13,994.9 crore in the same period last year. EBITDA rose 32.8% to Rs 2,878.5 crore from Rs 2,168 crore in the year-ago quarter.

Experts weigh in on whether to buy, sell, or hold Tech Mahindra shares. Nomura keeps a Neutral stance and sees no upward potential for the stock, expecting Tech Mahindra to outperform peers in FY27 due to two large telecom deals and growth in other sectors. The company aims to hit a 15% average EBIT margin in FY27, driven by AI-led productivity improvements and operational efficiencies.

Nuvama maintains a Buy rating with a target price of Rs 1,950, citing strong deal wins and potential earnings growth. They project Tech Mahindra to achieve a 25% compound annual growth rate over the next two years. Choice Institutional Equities holds an Add rating with an 11% upside target price of Rs 1,775, focusing on further AI productivity benefits and a 15% FY27 margin target.