Tech Mahindra Earnings Preview: SEBI RA Rohit Mehta Flags Crucial Support Level

After weak earnings from TCS and HCL Tech, attention turns to Tech Mahindra as it reports results on July 16. The analyst sees ₹1,500 - ₹1,550 as a make-or-break zone.

All eyes turn to Tech Mahindra after weak Q1FY26 earnings by IT bigwigs Tata Consultancy Services (TCS) and HCL Technologies dampened investor sentiment.

HCL Technologies was the top loser on the Nifty50 index, declining by over 3%, after reporting weaker-than-expected first-quarter results on Monday, hurt by margin headwinds.

According to Kotak Institutional Equities, Tech Mahindra is expected to report a decline of less than 1% in constant currency (CC) revenue for the first quarter. EBIT margin is expected to expand by 60 basis points, driven by rupee depreciation and ongoing cost optimization efforts. 

Ahead of Tech Mahindra’s earnings announcement on July 16, the stock is trading at a pivotal technical zone, said SEBI-registered analyst Rohit Mehta. 

Technical Trends

After testing resistance near its all-time high of ₹1,774, the stock has entered a pullback phase and is currently hovering around the ₹1,500 - ₹1,550 zone. 

A key support lies between ₹1,200 and ₹1,280, and sustaining above this zone is essential to keep the broader uptrend intact, Mehta said.

A decisive move above ₹1,550 could reignite bullish momentum, while a breakdown below support levels could trigger selling pressure, he added.

Tech Mahindra shares closed 0.5% higher at ₹1,585 on Tuesday, having lost 7.4% year-to-date (YTD).

Fundamentally, Tech Mahindra posted strong profitability growth in the previous quarter. The company has significantly reduced its debt and is now operating nearly debt-free.

Despite the positives, the IT major faces some headwinds. Revenue growth has been relatively sluggish, with a five-year sales CAGR of just 7.52%. Return on equity remains moderate at 13.6%, reflecting average long-term profitability.

The analyst views the ₹1,500 - ₹1,550 range as key for any potential breakout. A move above this zone could trigger a fresh rally, while weakness below ₹1,280 may shift the outlook to bearish.

Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’.

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