India's Tech Mahindra gains as strong deal wins lift growth outlook

July 17 : Shares of India's Tech Mahindra rose as much as 3.5 per cent on Friday after the IT services firm posted better-than-expected quarterly revenue, with analysts saying strong deal wins and margin improvement could make it one of the fastest growing companies among its peers.

The stock was last up 1.8 per cent at 1,537.5 rupees and was among the top gainers on the Nifty IT index, which was trading 1 per cent higher. It was also one of the top gainers on the benchmark Nifty 50 index.

The firm's net new order bookings rose to $1.08 billion from $809 million a year earlier, marking three straight quarters of deal bookings above the $1 billion mark.

Nomura raised its fiscal 2027 revenue growth expectations to 5.9 per cent from 5.1 per cent, citing strong growth momentum and the management's expectation that revenue growth would outpace the industry average this year.

Tech Mahindra is also on track to achieve its 3-year plan of improving its operating margin to 15 per cent by fiscal 2027, analysts at BOB Capital Markets said.

Jefferies raised its earnings per share estimates by 6-8 per cent for FY2027-2029.