Tech Mahindra Q2 results: Net profit likely to see double-digit growth; Key focus on bonus shares, guidance and dividend

IT major Tech Mahindra will announce its second-quarter results on Thursday, October 15. The company is expected to report decent growth in revenue and net profit for the September quarter, aided by new deal wins.

Tech Mahindra’s net profit could rise 28% to 32% YoY and 4% to 8% QoQ to between ₹1,530 crore and ₹1,580 crore. Growth is likely to be supported by the ramp-up of new deals and strong demand from the BFSI and retail verticals. The company reported a net profit of ₹1,465 crore in the previous quarter and ₹1,194 crore in the same quarter last year.

As per experts, Tech Mahindra’s Q2 revenue could increase by 13% to 14% on a yearly basis and by up to 1.5% sequentially, to between ₹15,790 crore and ₹15,950 crore. The company reported revenue of ₹15,712 crore in the previous quarter and ₹13,995 crore in the September quarter of FY26. The EBIT margin is expected to remain flat at 14.3% to 14.5%. Wage hikes may weigh on margins, while rupee depreciation could offer some support.

Investors are keenly awaiting Tech Mahindra’s results, as the company’s board is likely to approve its first-ever bonus issue along with an interim dividend. Besides this, management commentary on the business outlook, investments in AI adoption and key financial metrics will also be closely watched.

Ahead of the Q2 results, Tech Mahindra shares were trading over 3% higher at ₹1,627 on Thursday, October 15. The stock has been largely flat this year, down 0.9% so far in 2026.

Tech Mahindra technical outlook

Tech Mahindra heads into its Q2FY27 results with strong buying momentum. The stock has risen nearly 9% in two sessions from its October 12 low of ₹1,442. That level held as support, just as it did in July. On Wednesday, the stock gained another 2% to close at ₹1,575, its highest level in about a month.

The rally has pushed the stock back above both its 20-day EMA and 50-day EMA . The 20-day EMA has been below the 50-day EMA since late September, but it has now started to turn higher. If it crosses back above the 50-day EMA, that would add to the positive signs.

The Directional Movement Index (DMI) supports this view, meaning buyers have regained control. However, the ADX is low at 12.9, which shows the new uptrend is still in its early stage and has not gained strength yet.

Tech Mahindra options: how big a move is expected?

With Tech Mahindra futures at ₹1,572, the at-the-money call and put options are priced at a combined ₹83. This means the options market expects a move of about ±5.3% by the October 27 expiry. That puts the expected range at roughly ₹1,490 to ₹1,655.

In the last eight quarters, the stock never moved more than 5% on the day after the results. The biggest next-day move was a 4.1% rise after the Q1FY27 results. Over 10 days, the stock moved more than 5.3% only twice. This quarter could be different, though. A possible bonus issue and dividend announcement could draw more attention to the stock than usual.

Options strategy for Tech Mahindra Q2 results

If you expect the stock to stay in a range: A short straddle, selling the ATM call and put, could be considered. Tech Mahindra’s past reactions have mostly stayed within the current expected move, which supports this view. The strategy makes profit if the stock stays within roughly ₹1,500 to ₹1,660 until expiry.

If you expect a big move after the results: A long straddle, buying the ATM call and put, could be considered. The stock has moved sharply over 10 days in two of the last three quarters, and the bonus issue could add to the interest. The strategy makes profit if Tech Mahindra moves beyond roughly ₹1,500 on the downside or ₹1,660 on the upside. However, option premiums usually fall sharply after the results, so the stock needs to move quickly for this trade to work.

If you want to trade a move in one direction: Traders can wait for the stock to break out of its current range before taking a position. If Tech Mahindra closes above the ₹1,633 resistance, a bull put spread could be considered. If it slips below the ₹1,535 to ₹1,547 support zone, a bear call spread may be more suitable.