Brokerage firms JM Financial and Choice Institutional Equities see long-term potential, with target prices suggesting an upside of up to 20 per cent. For the quarter ending September 2025, Tech Mahindra reported a consolidated revenue of Rs 139.9 billion, a 4.8 per cent increase quarter-over-quarter (QoQ). In constant currency terms, the revenue grew 1.6 per cent QoQ, which JM Financial noted was its "highest sequential growth in past three years". This growth was primarily driven by the retail and logistics (+9 per cent USD), manufacturing (5 per cent), and BFSI (4 per cent) verticals. The company's EBIT margin saw its eighth consecutive quarter of expansion, improving by 108 basis points QoQ to 12.1 per cent. This improvement was attributed to productivity gains, better volumes, SG&A optimisation, and a 40 bps currency tailwind. However, consolidated PAT stood at Rs 11.9 billion, a modest 4.7 per cent QoQ growth, which fell short of Choice Equities' estimate of Rs 12.5 billion. The company also announced a dividend of Rs 15 per share. Net new deal wins remained robust at $816 million. However, management indicated that to achieve above-industry growth in FY27, deal wins would need to approach the $1 billion mark quarterly, unless discretionary demand picks up. What brokerages say JM Financial has maintained its 'Add' recommendation on the stock, raising its target price to Rs 1,560 from Rs 1,440.90, implying an 8.2 per cent upside. The brokerage termed the Q2 performance as "strong". JM Financial said, "TECHM's consistent progress towards its stated goals is impressive, though well discounted in the price". However, they cut their FY27 USD revenue growth estimate, aligning it with larger peers, noting that visibility for FY27 growth is "limited at this stage". Choice Institutional Equities reiterated its 'Buy' rating, though it revised its target price downwards to Rs 1,730 from a previous Rs 1,931. The new target still presents a potential upside of 20 per cent. The firm believes Tech Mahindra is "pivoting its growth through various vectors with focus on growing large client accounts" and focusing on Data, AI, and Cloud services. However, they cautioned, "given the current weak macros, we believe TECHMs strategic turnaround journey, which began a year & a half ago, will take sometime to exhibit promising yet sustainable growth in the near term". Choice has revised its earnings estimates downwards for FY26 and FY27 to account for the slower progress.