Tech Mahindra's Q1 FY26 results were a miss on a constant currency basis but largely in-line on USD/INR basis. Commentary suggests positive momentum in Telco and BFS, but weakness was evident in Hi-Tech (semicon), and Manufacturing (Auto), suggesting lack of broad recovery. Hence, Revenue estimates lowered by 1%/1.6%. Operating profit margin estimates largely unchanged as margin aspirations (15% by end of FY27) will be a tough ask on muted growth. Overall earnings are largely unchanged.NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. Dolat Capital ReportTech Mahindra Ltd.’s Q1 revenue declined -1.4% in constant currency terms (our estimate: -1%), but a 240 bps Forex tailwind led to 1% QoQ growth on a USD basis. Communications, Media, and Entertainment/Manufacturing grew 2.8%/4% QoQ in USD terms, while BFSI/Retail/Others declined 0.5%/0.9%/13% respectively in USD terms. Operating profit margin came in at 11.1%, an increase of 56bps QoQ (our estimate: 10.7%). Vertical commentary remains mixed with CME & BFSI seeing stability/growth, while Hi-Tech, retail and manufacturing remain under pressure from tariff disruptions. Margins are showing recovery, but path towards 15% OPM by FY27E will remain challenging in growth constrained environment. Tech Mahindra’s Q1 FY26 financial perf. remained lackluster with no material improvement. The stock has rallied ~12% since the last quarterly reporting, driving valuations ahead of earnings recovery. We largely retain our earnings estimate for FY26/FY27E, and revise our rating to ‘Sell’, with a target price of Rs. 1,460 (valued at 22x of FY27 earnings.Click on the attachment to read the full report: Tech Mahindra Q1 Results: Profit Down Over 2% But Meets EstimatesDISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.Users have no license to copy, modify, or distribute the content without permission of the Original Owner.. Read more on Research Reports by NDTV Profit.