July 17 (Reuters) – Shares of India’s Tech Mahindra rose as much as 3.5% 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% at 1,537.5 rupees and was among the top gainers on the Nifty IT index, which was trading 1% 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% from 5.1%, 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% by fiscal 2027, analysts at BOB Capital Markets said.
Jefferies raised its earnings per share estimates by 6-8% for FY2027-2029.
(Reporting by Abhirami G in Bengaluru; Editing by Sonia Cheema)
