Brokerages issued mixed calls on Tech Mahindra despite the second-quarter results beating expectations.

What Happened: Tech Mahindra reported a consolidated net profit of ₹1,250 crore, a 153.1% year-on-year increase. The company's revenue went up 3.5% from the previous year to ₹13,313 crore. 

The results surpassed Nuvama's expectations of ₹1025.3 crore in profit and ₹13,186.3 crore in revenue. 

Tech Mahindra also announced an interim dividend of ₹15 per share. The company declared November 1 as the record date and will pay the interim dividend on or before November 17. 

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Brokerage Views: Motilal Oswal gave a "neutral" call with a target price of ₹1,700. The brokerage firm said the company had a broad-based revenue growth, most of which was concentrated in Europe. banking, financial services and insurance (BFSI) was up 2.4%, underscoring the recovery in the segment, the research firm added.

Motilal, however, added that continuing weakness in top accounts points that U.S. communications is continuing to struggle and could be a drag to Tech Mahindra and the IT industry. 

Nuvama maintained its "reduce" rating with a target price of ₹1,350. The brokerage said the company delivered decent performance over the last two quarters, beating low expectations. However, it sees the company struggling to meet its FY27 target given the micro and macro factors. 

Price Action: Shares of Tech Mahindra surged 2.91% to ₹1,737.05 on Monday morning. 

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