Anand Rathi Recommends 'Buy' on Tech Mahindra with Rs 1964 Target

• Tech Mahindra showed healthy Q3FY26 performance with 1.7% q/q CC revenue growth despite being a furlough quarter.
• EBIT margin expanded by 100bps q/q to 13.1%, and Total Contract Value (TCV) exceeded $1 billion.
• A significant 5-year, $500 million European telco modernisation deal contributed to the TCV, ramping up from Q1FY27.
• IT services grew 1.3% q/q, and BPO saw 2.7% q/q growth, boosted by retail segment seasonality.
• Anand Rathi maintains a 'BUY' rating with a target price of Rs 1,964, based on expected FY28 P/E of 23.6x.

Why It Matters: Anand Rathi recommends buying Tech Mahindra, citing strong Q3FY26 results and a target price of Rs 1964.