Tech Mahindra shares gain on Q3 results; third analyst projects stock target above ₹2,000

Shares of Tech Mahindra Ltd

. gained nearly 4% on Monday, January 19, trading close to their 52-week high after the IT services and consulting firm reported better-than-expected revenue growth and margin performance.

Revenue grew 1.7% in constant currency terms, comfortably beating estimates of 0.6%. EBIT margin improved sequentially to 13.1% from 12.1%, marking a sharp recovery from the low of 4.7% seen in Q2FY24.

Management said this was the ninth consecutive quarter of margin expansion and reiterated its aspiration to reach 15% margins by FY27, alongside industry-leading growth.

According to Tech Mahindra, deal wins on a last-twelve-month basis were the highest achieved in the past five years.

Global brokerage firm JPMorgan has upgraded Tech Mahindra to 'Overweight' from its earlier 'Neutral' rating. The brokerage has also raised its price target on the stock to ₹2,100 per share.

The brokerage expects the company to post a relatively strong exit growth rate of 1.9%, which, combined with mega deal ramp-ups, could help it match HCL Technologies and Infosys with around 6% growth in FY27E.

This growth trajectory is also expected to provide incremental operating leverage, supporting the company's 15% margin target.

Following the improved outlook, JPMorgan raised its revenue estimates by 2-3% and margins by 30-70 basis points, resulting in EPS upgrades of 3-8% over FY26-28E.

Citing stronger and more sustainable growth, the brokerage also increased its target valuation multiple to 24x from 20x.

Tech Mahindra shares were trading 3.57% higher at ₹1,730.10. The stock has gained close to 8% so far in 2026.