Tech Mahindra Shares Surge by 10% on Announcement of Vision 2027 Roadmap

Tech Mahindra, one of India’s leading IT companies, witnessed a remarkable surge in its shares by 10% today. The company’s stock hit an upper circuit on the BSE, reaching a high of INR 1,309.30. This surge came on the back of the unveiling of Tech Mahindra’s ‘Vision 2027,’ a three-year roadmap presented by the company’s CEO and MD, Mohit Joshi, alongside the fourth quarter results for FY24 announced on April 25.

The ‘Vision 2027’ aims to enhance revenue growth, improve margins, and outperform competitors over the next three years. Investors have shown excitement towards Tech Mahindra’s strategic plan, although brokerage firms remain cautious due to the near-term challenges.

Despite weaker-than-expected results for Q4FY24, Tech Mahindra outlined ambitious goals for the next three years. The management disclosed key objectives for FY27, including surpassing peers in revenue growth, achieving a 15% EBIT margin by FY27, maintaining a 30%+ ROCE profile, and delivering more than 85% FCF returns by FY27.

The company reported a 41% decline in net profit to INR 661 crore in Q4FY24 compared to INR 1,117.70 crore in the same period last year. While there was a significant drop in profits, Tech Mahindra’s future roadmap has ignited investor optimism.

Looking at the overall FY24 performance, Tech Mahindra’s net profit decreased from INR 2,461 crore to INR 2,396.80 crore, with revenue declining to INR 51,995.50 crore from INR 53,290.20 crore in FY23.