Tech Mahindra share price climbs 2% ahead of Q4 results today; here's what experts expect from IT firm's Q4 earnings
Tech Mahindra share price traded with decent gains in the morning session of trade on Thursday, April 24, in an otherwise weak market. Tech Mahindra share price opened at ₹ 1,450.45 against its previous close of ₹ 1,439.30 and climbed 1.9 per cent to an intraday high of ₹ 1466.05. Around 10 AM, Tech Mahindra share price traded 0.90 per cent higher at ₹ 1,452.10. Equity benchmark Sensex was 0.22 per cent down at 79,938 at that time.
After declining for four straight months, Tech Mahindra's share price has rebounded in April, rising nearly 2 per cent so far this month. Year-to-date, the stock is down nearly 16 per cent. The IT stock hit a 52-week low of ₹ 1,172.55 on April 25 and a 52-week high of ₹ 1,807.40 on December 12 last year.
Tech Mahindra will declare its March quarter (Q4FY25) results today (Thursday, 24th April, 2025). Along with the Q4 earnings, the IT company may also announce an interim dividend for the last financial year (FY25).
Tech Mahindra's Q4 numbers could come mixed, with mild growth in profit and margins.
Along with the key numbers, investors focus will be on management commentary for the outlook on key segments, especially in the US, such as CME (communications, media and entertainment) and manufacturing verticals.
According to brokerage firm Motilal Oswal Financial Services, Tech Mahindra's revenue growth may decline 0.8 per cent quarter-on-quarter (QoQ) in constant currency (CC) in Q4 due to a muted recovery in the telecom and manufacturing segments, which contribute nearly 50 per cent of the company's total revenue.
"While the communications vertical has stabilised, recovery may take time," Motilal Oswal said.
Motilal said Tech Mahindra's adjusted profit after tax (PAT) may rise 3.3 per cent year-on-year (YoY) and 1.8 per cent QoQ. Margins may rise 10bp despite wage hikes as 'Project Fortius' continues to deliver.
Last year, Tech Mahindra unveiled its three-year plan, Project Fortius, to achieve a 15 per cent operating margin.
Motilal expects Tech Mahindra to deliver a good deal of TCV (total contract value) in Q4, highlighting that the rate of deal wins saw improvement in the third quarter in key verticals such as telecom and hi-tech.
On the other hand, Nuvama Institutional Equities expects Tech Mahindra to report a 0.7 per cent QoQ decline in revenue in constant currency (CC) terms and a 1.5 per cent QoQ decline in US dollar (USD) terms.
Nuvama believes the benefits of reversal of furloughs and Comviva seasonality will be offset by headwinds in hi-tech and a few low-margin deal closures.
Tech Mahindra's margins, according to Nuvama, may remain flat Qoq, despite the wage hike.
"We shall watch out for the management comments on the FY27 revenue and margin guidance, and their progress on it," Nuvama said.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
First Published: 24 Apr 2025, 09:58 AM IST
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