Tech Mahindra shares see sharpest fall among IT peers: What is behind the slide?

Tech Mahindra shares came under selling pressure on Monday, October 12, emerging as one of the worst-performing stocks among major Indian IT companies. The stock slipped up to 4.72% to the intraday low of ₹1,442.50 on the NSE.

The decline follows a sharp sell-off in US telecom stocks, the company's disclosure regarding the liquidation of a step-down subsidiary in Poland, and ahead of its September-quarter results later this week.

According to news reports, the stock's communications business, which accounts for around one-third of its revenue, makes developments in the global telecom industry particularly relevant for investors.

US telecom stocks rout

US telecom stocks plunged on Friday, October 9, after SpaceX agreed to acquire a nationwide portfolio of 800 MHz low-band wireless spectrum from Grain Management, strengthening its plans to expand Starlink into mobile services.

According to news reports that quoted analysts, the deal sparked fears that Starlink could emerge as a more direct competitor to traditional wireless operators by providing mobile connectivity over satellite networks, potentially challenging their market share, pricing power and long-term growth prospects.

Investors were also concerned that established telecom companies could face higher spending to defend their market positions and compete for spectrum. T-Mobile US shares fell 13.2%, while AT&T and Verizon dropped around 10%.

Poland subsidiary liquidation

In an exchange filing last week, Tech Mahindra said that LCC Networks Poland Sp. z o.o., a wholly owned subsidiary of LCC Europe BV and a step-down wholly-owned subsidiary of the Company, was liquidated effective October 9, following court approval for deletion from the local national register.

The entity reported revenue of just ₹0.603 crore in FY26 and had no operations during the year, making the development financially immaterial to the parent company.

Q2 results and board meeting in focus

Another reason the IT stock is under pressure is that market participants are in wait-and-watch mode, awaiting Tech Mahindra's board meeting and Q2 FY27 results on October 15, 2026. The results will offer cues on revenue growth, margins, deal wins, and client spending, particularly in the communications business.

Management's commentary on demand and technology spending will be closely watched amid uncertainty in the global telecom industry and the broader IT services sector.

While the US telecom sell-off may have weighed on sentiment, the upcoming results could provide greater clarity on the company's operating outlook.