Tech Mahindra Share Price Today: Stock Performance Update
Tech Mahindra Ltd (NSE: TECHM), one of India’s leading IT services and consulting companies, witnessed strong buying interest in early February 2026 as the broader market recovered from mid-January volatility. On 4 February 2026 the stock closed at ₹1,682.45 on the NSE, up 3.18 % from the previous day’s close of ₹1,630.55. The BSE closing price was ₹1,683.10, reflecting similar momentum. The day’s trading range was ₹1,635.20 – ₹1,695.80, with volume of 28.4 lakh shares—above the 20-day average of 21.6 lakh shares.
The rally came on the back of renewed optimism around global IT spending recovery, positive commentary from Accenture and Infosys on Q4 FY26 outlook, and expectations of strong deal wins in BFSI and healthcare verticals—two areas where Tech Mahindra has significantly increased wallet share since mid-2025.
Intraday Movement & Technical Snapshot (4 Feb 2026)
The stock opened with a gap-up at ₹1,648.70 (+1.12 %) and steadily climbed through the day. Key technical observations:
- 50-day EMA: ₹1,612 (stock well above, strong bullish signal)
- 200-day EMA: ₹1,548 (significant distance → long-term uptrend intact)
- RSI (14): 68.4 (approaching overbought but not yet divergent)
- MACD: Bullish crossover sustained since 20 January 2026
- Pivot levels (classic): Support 1 ₹1,652, Support 2 ₹1,622; Resistance 1 ₹1,712, Resistance 2 ₹1,742
The stock broke out above the ₹1,675 resistance zone formed in late December 2025 and held above it on pullbacks, confirming a fresh leg higher. Immediate target for momentum traders: ₹1,720–1,740; major hurdle: ₹1,800–1,820 (previous all-time high zone from October 2021).
Year-to-Date & 12-Month Performance
- Calendar year 2026 YTD (1 Jan – 4 Feb): +14.2 % (vs Nifty IT +9.8 %)
- 12-month return (4 Feb 2025 – 4 Feb 2026): +38.6 %
- 52-week range: ₹1,185.00 – ₹1,820.00
- Market capitalisation (4 Feb close): ₹1,64,200 crore
- P/E ratio (TTM): 28.4× (vs sector median 31.2×)
- P/B ratio: 4.1×
- Dividend yield: 2.1 % (₹60 final + ₹30 interim declared for FY25)
Tech Mahindra has outperformed the Nifty IT index by 420 basis points in CY 2026 so far and by 1,100 basis points over the last 12 months, reflecting improved investor confidence in its turnaround story.
Fundamental Drivers Behind Recent Strength
Several factors have contributed to the stock’s outperformance since mid-December 2025:
- Deal-win momentum — Tech Mahindra announced $1.1 billion in large deals in Q3 FY26 (ended December 2025), the highest quarterly win since Q1 FY23. Key wins included multi-year transformation contracts in BFSI (US & UK), healthcare payer platforms and manufacturing supply-chain digitisation.
- Margin recovery trajectory — EBITDA margin improved sequentially to 11.8 % in Q3 FY26 from 10.4 % in Q2 FY26, driven by utilisation improvement (84.2 %), SG&A rationalisation and lower sub-contractor costs. Management guided for 13–14 % EBITDA margin by Q4 FY27.
- Vertical rebalancing success — Exposure to high-growth verticals (healthcare, life sciences, manufacturing) now stands at 48 % of revenue (up from 38 % in FY24), while legacy telco exposure has declined to 28 % (from 42 % in FY23).
- Generative AI traction — Tech Mahindra’s AI-led offerings (“AI.Agile” suite) contributed 14 % to Q3 revenue, up from 8 % a year ago. Major wins in AI-driven contact-centre transformation and intelligent automation in banking.
- Balance-sheet strength — Net cash position of ₹4,200 crore as of December 2025; debt-free status maintained; ROCE improved to 18.4 % from 14.2 % a year ago.
Analyst Views & Target Price Consensus (early February 2026)
Brokerage consensus (23 analysts tracked by Bloomberg):
- Average target price: ₹1,920
- High: ₹2,200 (Motilal Oswal – “Buy”)
- Low: ₹1,650 (Prabhudas Lilladher – “Hold”)
- Rating split: 14 Buy / 7 Hold / 2 Sell
Bull-case drivers cited: sustained deal momentum, margin expansion to mid-teens, AI revenue scaling to 20–25 % by FY28. Bear-case concerns: slower-than-expected telco recovery, wage inflation pressure and potential client spending cuts if US recession fears re-emerge.
Valuation Perspective
At ₹1,682 (4 Feb close), Tech Mahindra trades at:
- 28.4× FY26E EPS (consensus ₹59.2)
- 24.1× FY27E EPS (consensus ₹69.8)
- 4.1× FY26E book value
Compared with peers:
- Infosys: 26.8× FY27E
- TCS: 29.2× FY27E
- HCL Tech: 25.4× FY27E
- Wipro: 22.1× FY27E
Tech Mahindra remains at a discount to the Nifty IT median (27.5× FY27E) despite superior deal-win momentum and margin recovery trajectory.
Risk Factors to Watch
- Telco vertical (28 % of revenue) still under pressure; any delay in 5G monetisation could impact growth.
- Wage inflation and talent retention costs remain elevated (attrition stabilised at 14.2 % in Q3 FY26).
- Currency headwind: every 1 % depreciation of INR vs USD impacts EBIT by 40–45 bps.
- Global spending slowdown: if US/Europe IT budgets contract in H2 CY26, discretionary projects could be deferred.
Conclusion: Momentum Intact, Valuation Still Reasonable
Tech Mahindra’s stock has staged a convincing recovery since mid-2025, driven by strong deal wins, margin expansion, AI traction and balance-sheet strength. At current levels (₹1,682), the stock trades at a reasonable 24× FY27E earnings with visible triggers ahead—continued large-deal momentum, further margin improvement and potential re-rating once telco vertical stabilises.
For long-term investors the risk-reward remains favourable provided global IT spending does not face a sharp downturn. Short-term traders should watch the ₹1,720–1,740 resistance zone; a decisive break could open the path toward ₹1,900–1,950 in the coming months.
Tech Mahindra is no longer the laggard it was in 2023–24; it is now a credible contender in the large-cap IT space with a clear path to mid-teens margin and sustained double-digit revenue growth.
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