Tech Mahindra Q4 Preview: Margins Likely to Improve; Revenue Growth May Remain Muted Shares of Tech Mahindra are under close scrutiny ahead of its Q4FY26 results, scheduled for April 22. Analysts anticipate a stable revenue performance with modest growth, while margins are expected to show improvement. The company’s stock has exhibited mixed movements recently, closing at Rs 1,499.00 on April 21, reflecting a 0.36% decline for the day. Over the past month, the stock has gained 8.31%, and it is up 3.47% over six months. However, it has slipped 6.76% year-to-date, despite remaining 9.14% higher than a year ago. Revenue for the quarter is projected to remain largely unchanged in dollar terms, hovering around $161.6 crore, compared to $161 crore in the previous quarter. In rupee terms, revenue is expected to rise to approximately Rs 14,819 crore, a 3% increase from Rs 14,393 crore. The BFSI (banking, financial services, and insurance) and telecom sectors are anticipated to drive this growth, as they constitute significant portions of Tech Mahindra’s business. Operating performance is forecast to see marginal improvements, with EBIT estimated at Rs 2,022 crore, up 6.9% from the previous quarter. Margins are likely to rise to 13.6% from 13.1%, reflecting better cost management and efficiency. Net profit is projected to reach around Rs 1,453 crore, marking a 29.5% increase over the prior quarter. This growth is attributed to a lower base in the previous quarter, which was negatively impacted by labor code changes. Deal activity is expected to remain steady, with net new deal wins anticipated at approximately $1 billion for the quarter. The rupee’s movement during the period is also likely to have contributed to earnings support.#bfsi #tech_mahindra #telecom #q4fy26 #q3fy26
Strong Growth, Limited Upside: UBS Initiates 'Neutral' Coverage On Coforge — Check Target Price UBS has launched coverage on Coforge with a Neutral rating and a target price of Rs 1,240, citing the company’s strong growth history but highlighting concerns about its acquisition-driven strategy and positioning in the AI-driven IT services sector. The brokerage acknowledges Coforge’s consistent execution, with revenue growth driven by a mix of organic momentum and acquisitions. The company has historically delivered double-digit growth, supported by significant deal wins and client additions. However, UBS notes that much of this growth has already been reflected in the stock’s valuation. The stock has seen a sharp rerating in recent years, and while valuations remain reasonable on certain metrics, the risk-reward balance at current levels limits further upside. The brokerage suggests that investors should approach the stock with caution, as the potential for additional gains appears constrained. Coforge continues to benefit from a robust order book and strong client pipeline, particularly in sectors like BFSI, travel, and insurance. The company has also demonstrated its ability to scale through acquisitions, expanding both its capabilities and geographic reach. Despite this, UBS flags acquisition-related risks as a key concern. The recent Encora deal, for instance, is expected to result in equity dilution of around 20%, raising worries about integration challenges, margin pressures, and execution risks. The brokerage notes that the acquisition is unlikely to be earnings-per-share (EPS)-accretive in the short term unless Coforge can deliver stronger-than-expected growth and synergies. In terms of AI positioning, UBS evaluates Coforge using its proprietary VECTOR framework, which assesses companies on AI readiness.#ubs #motilal_oswal #coforge #encora #bfsi
