Buy Or Sell Tech Mahindra? SEBI RAs Divided On Outlook Amid Q1 Miss, See Support Near ₹1,550

Tech Mahindra’s first quarter (Q1) results have triggered mixed responses from analysts, with some highlighting margin recovery and deal momentum, while others flagged persistent top-line pressure and muted technical signals.

The company posted a consolidated net profit of ₹1,129 crore in Q1, nearly flat on a quarter-on-quarter basis but up 60% year-on-year. Revenue stood at ₹13,351 crore, rising 1.1% year-on-year. 

EPS came in at ₹11.65, and the board recommended a total dividend of ₹45 per share for FY25. 

SEBI-registered investment advisor Financial Independence Services (FIS) noted strong year-on-year profit growth and highlighted controlled expenses and robust deal flow as key positives. 

The firm said core profit grew 24% year-on-year, while deal wins touched $809 million in Q1, up 44% over the last twelve months. Attrition was reported at 12.6% with headcount rising to 148,517. 

FIS described the quarter as “positive” but advised investors to monitor second-quarter revenue ramp-up and deal execution.

Tech Mahindra: Buy or sell?

SEBI-registered analyst Harika Enjamuri said the stock has bounced from its 100 and 70-day exponential moving averages (EMAs) and formed a near-term base around ₹1,555–₹1,575. 

She flagged ₹1,625 as short-term resistance, with potential upside to ₹1,666 and ₹1,710 if that breaks. On the downside, she sees support at ₹1,550, cautioning that a breach could drag the stock toward ₹1,500 or ₹1,440.

SEBI-registered analyst Vinayak Gautam maintained a bullish short-term view, recommending a buy at ₹1,607 with a target of ₹1,660 and stop-loss at ₹1,590. 

He cited Tech Mahindra’s strong year-on-year profit increase and steady revenue growth as rationale, with a holding period of one week.

SEBI-registered analyst Financial Sarthis added that Tech Mahindra may be staging a tactical pullback, noting a recent price bounce off the 0.618 Fibonacci retracement and anchored volume-weighted average price (AVAP) confluence near ₹1,555. 

They called this zone a “high-probability” area for bulls and suggested smart money could be accumulating on the dip.

Meanwhile, SEBI-registered analyst Varunkumar Patel noted a weak quarter-on-quarter performance, citing a 2.1% decline in revenue and a 6.3% sequential drop in net profit. 

He noted the EBIT margin fell to 8.1% from 8.5% in the previous quarter, citing higher employee costs and subdued operating leverage. 

Patel added that management flagged ongoing demand weakness in telecom and enterprise segments, with slower deal conversions. 

Technically, he said the stock closed above its 50-day EMA but continues to trade below the 20-day EMA, with relative strength index (RSI) around 45. 

He believes the setup remains unclear and advised traders to short on a rise with tight stop-losses until a trend reversal emerges.

Tech Mahindra’s stock has declined 7.2% so far in 2025.

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