The ongoing earnings season has once again brought the spotlight back on India’s IT sector, with companies reporting their March quarter (Q4FY26) numbers.
Among them, let’s take a look at Tech Mahindra and L&T Technology Services (LTTS) which announced their Q4 results recently. From earnings performance, dividends to brokerages outlook, here’s a look at the key things investors need to watch.
Tech Mahindra Vs L&T Tech: What are brokerages saying
Motilal Oswal on Tech Mahindra
The brokerage house Motilal Oswal has taken a positive stance on Tech Mahindra. The brokerage has given a ‘Buy’ rating to the stock. It has set a target price of Rs 1,750. This implies 20% upside from the current market price.
The report highlighted improving visibility due to strong deal wins. “Large deal wins provide growth visibility,” it noted, adding that the company secured deals worth $3.79 billion Total Contract Value (TCV) in FY26.
Margins are also expected to improve. “Management reiterated its FY27 margin target of ~15% and indicated that expansion is ‘not too dependent on growth’. Most of the improvement is expected from gross margin expansion, delivery efficiencies and pricing.”
At the same time, risks remain. “Risks from client budget cuts loom,” the report cautioned, especially in a weak global demand environment.
Motilal Oswal on LTTS
The brokerage house Motilal Oswal has given a ‘Neutral’ rating to the stock. The brokerage has set a target price of Rs 3,400. This translates to a 4% potential downside.
The report highlighted that revenue growth was impacted due to portfolio exits and divestments. It noted, “Revenue declined 1.1% QoQ CC in Q4 to $306 million, while FY26 growth came in at 7.7% YoY CC. Q4 was impacted by portfolio exits and SWC divestment, leading to a weaker exit. With most of the cleanup behind, management expects a more stable base from Q1FY27.”
At the same time, the brokerage pointed out that margins are improving gradually. In its the Motilal Oswal said, “EBIT margin improved 40bp QoQ to 15.2% in 4Q, with FY26 margin at 14.5%. Management has guided for 16–17% margins over the medium term.”
However, the key concern remains execution. “Deal wins healthy; conversion remains the key monitorable,” the report added.
Tech Mahindra Vs L&T Tech: Q4 performance
Tech Mahindra Q4FY26 performance
Tech Mahindra reported stronger profit growth for the March quarter. The company reported a 16% year-on-year increase in net profit to Rs 1,354 crore.
Looking at the sequential front, revenue rose 5%, while EBIT increased 10.2% quarter-on-quarter to Rs 2,084 crore.
However, one of the key area in focus is workforce optimisation. The company’s total headcount stood at 147,623, down by over 1,100 employees year-on-year, indicating cost control measures.
L&T Tech Q4FY26 performance
L&T Technology Services reported a mixed set of numbers for the fourth quarter. On a sequential basis, net profit rose about 9.7% to Rs 332.1 crore, while revenue increased 2.5% to Rs 2,857.9 crore compared to the previous quarter.
Furthermore, the Earnings Before Interest and Taxes (EBIT) of the company also showed improvement, up by 5.5% to Rs 434.9 crore.
On a year-on-year (YoY) basis, the company reported a 6.75% surge in profit and an 8.3% growth in revenue.
Tech Mahindra Vs L&T Tech: Dividend announcement
Tech Mahindra dividend: What is the payout?
Tech Mahindra announced a final dividend of Rs 36 per share for FY26.
“Recommended Final Dividend of Rs. 36/- per equity share… subject to the Members’ approval at the forthcoming Annual General Meeting,” the company said in its filing.
With this, the total dividend payout for FY26 stands at Rs 51 per share. The record date is set for July 3, 2026, and the payment is expected before August 14, 2026.
LTTS dividend: What did shareholders get?
Alongside its earnings, the company announced a final dividend of Rs 40 per share for FY26.
“The Board of Directors has recommended a final dividend of Rs 40/- per equity share…for the financial year ended March 31, 2026,” the company said in its exchange filing.
The dividend will be paid after shareholder approval at the Annual General Meeting (AGM), within the stipulated timeline.
Tech Mahindra Vs L&T Tech: Stock performance
The stock performance of both companies shows pressure over the medium term.
Tech Mahindra, on the other hand, has declined nearly 5% in the last five days. Over one month, the share price of the company delivered a return of about 3%, while over six months it declined around 2%. In 2026 so far, the stock is down roughly 11%.
For LTTS, the stock has declined about 2% in the last five days but gained around 12% over one month. The share price of the company in the last six-month fell 18%, and on a one-year basis, it has fallen 22%. So far in 2026, the stock is down about 22%.
What investors need to watch
As per the brokerage report, the key factor to watch going forward will be deal conversion, margin sustainability, and demand recovery in global technology spending.
Disclaimer: The financial analysis and brokerage ratings provided above are for informational purposes only and do not constitute an offer or solicitation for the purchase or sale of any security. Investors are advised to consult with a SEBI-registered investment advisor before making any decision based on price targets or ‘Buy/Neutral’ ratings, as market conditions and individual risk profiles vary. Past performance of stocks like Tech Mahindra and LTTS is not indicative of future results.
This disclaimer has been generated using AI to support user well-being and responsible content consumption.
