Motilal Oswal Recommends 'BUY' on Tech Mahindra with Rs 2350 Target

• Tech Mahindra reported 3QFY26 revenue of USD1.6 billion, a 1.7% QoQ increase in constant currency, surpassing estimates.
• Retail, Technology, and Healthcare sectors showed growth, while BFSI declined by 6.2% QoQ.
• EBIT margin improved by 100 basis points QoQ to 13.1%, exceeding analyst expectations.
• Adjusted PAT was INR13 billion, below estimates, excluding a one-time impact from labor code changes.
• New deal total contract value (TCV) surged to USD1,096 million, up 34% QoQ and 47% YoY.

Why It Matters: Motilal Oswal maintains a 'BUY' rating on Tech Mahindra, projecting a target price of INR2,350.