Tech Mahindra Q1 Results Review - New Laid Strategies Showing Its Way To Growth: IDBI Capital

IDBI Capital Report

Tech Mahindra Ltd. reported above estimate numbers in Q1 FY25 with 0.7% growth QoQ. Going forward the company believes that Q2 would show improved results on the back of laid down strategies such as Investing in verticals (manufacturing and banking, financial services and insurance) and markets(U.S., UK & APJ), client mining and building competencies (AI and Gen AI, trained 25000 employees) .

Further, the company also emphasises on building service line capabilities and partnership with hyper-scalers and ISVS.

We believe, Tech Mahindra has put-forth the way for growth via these operational and growth led strategies. However, we expect turnaround period to get increased due to upcoming softness due to seasonality.

Also, we believe execution is the key, hence, we maintain our Hold rating with revising our target price to Rs 1,512 (24 times FY26E earnings per share) versus Rs 1,265.

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