Tech Mahindra stock surges over 7 per cent on strong Q2FY27 result

Representational Image. File pic.

Shares of Tech Mahindra on Friday surged over 7 per cent after the IT services firm reported a 32.74 per cent jump in consolidated net profit for July-September period of FY27.

The stock jumped 7.15 per cent to Rs 1,766.70 on the BSE. At the NSE, the stock climbed 7 per cent to Rs 1,767. The company's market valuation jumped Rs 10,974.86 crore to Rs 1,72,895.16 crore.

The stock was the biggest gainer among the Sensex and Nifty firms.

Among other IT stocks, Infosys traded nearly 4 per cent higher, TCS climbed 3.26 per cent and HCLTech was up over 1 per cent.

Tech Mahindra on Thursday reported 32.74 per cent jump in consolidated net profit to Rs 1,585.6 crore for September quarter of FY27 as strong volume growth, cost savings and rupee depreciation lifted operating profit.

The company's board has recommended a 1:1 bonus issue, under which shareholders will get one bonus share for every share held, as the company marks its 40th anniversary.

The bonus shares are expected to be credited by December 15, according to a regulatory filing.

This is the first bonus issue by Tech Mahindra in 11 years. The company last issued bonus shares in the ratio of 1:1 in March 2015.

The Pune-based company had posted a net profit (attributable to owners of the company) of Rs 1,194.5 crore in the year-ago period.

Tech Mahindra's revenue from operations rose 15.6 per cent to Rs 16,180.2 crore during the quarter under review, as against Rs 13,994.9 crore in Q2 FY26.

Sequentially, profit and revenue were up by 8 per cent and 3 per cent, respectively.

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