Tech Mahindra jumps 8%
Tech Mahindra shares raced ahead of the BSE Sensex pack on Friday, sprinting over 8%, to add around Rs 11,000 crore to its market value. The blockbuster gains came after the IT firm reported a 32.74% jump in consolidated net profit for the September quarter.Tech Mahindra, along with other IT stocks helped domestic equity benchmarks shake off a sluggish start.Around 12.30 pm, Tech Mahindra shares were trading 8.05% higher at Rs 1,781.50 on the BSE. On the NSE, the stock was up 7.87% at Rs 1,779.90, a gain of Rs 129.90. Following the rise, Tech Mahindra's market capitalisation increased by Rs 10,974.86 crore to Rs 1,72,895.16 crore.The company's consolidated net profit attributable to its owners rose 32.74% year on year to Rs 1,585.6 crore in the July-September quarter of FY27, compared with Rs 1,194.5 crore in the corresponding quarter last year.
The improvement was supported by strong volume growth, cost savings and rupee depreciation.Revenue from operations grew 15.6% to Rs 16,180.2 crore during the quarter, against Rs 13,994.9 crore in Q2 FY26. Compared with the preceding quarter, net profit increased 8%, while revenue rose 3%.Alongside its earnings announcement, Tech Mahindra's board recommended a bonus issue in the ratio of 1:1 to mark the company's 40th anniversary.
The proposal means shareholders will receive one additional share for every share they hold. The company said in a regulatory filing that the bonus shares are expected to be credited by December 15.The proposed issue will be the company's first in 11 years. Its previous bonus issue, also in the ratio of 1:1, was announced in March 2015.
IT shares lift benchmarks, but oil prices remain a concern
The rally in technology stocks helped the domestic market turn positive after a muted start on Friday. ADD INFOThe recovery followed a strong session on Thursday, when both benchmarks recorded their biggest single-day gains in four months.
The previous session's advance came as a global sell-off in AI-linked stocks created room for value buying in domestic equities, alongside gains driven by individual companies' earnings."Markets are witnessing a sharp rebound, supported by a resurgence in IT stocks following strong quarterly results, even as other Asian markets plunged on a sell-off in AI-linked stocks," said Ankur Punj, managing director of Equirus Wealth.However, the advance remained constrained by concerns about elevated crude oil prices and rising US producer prices, which continued to keep global investors cautious. Domestic market participants were also tracking quarterly earnings, with stock-specific developments influencing trading, two analysts said.Brent crude was hovering around $105 per barrel on Friday.Of the 16 major sectors, 11 were trading higher. Small-cap and mid-cap stocks, which had declined during the early part of the session, were trading flat.The IT index rose 3%, with Tech Mahindra leading the advance after beating second-quarter revenue expectations on the back of robust deal wins. The positive sentiment extended to other major technology stocks, with Infosys trading nearly 4% higher, TCS gaining 3.26% and HCLTech rising more than 1%.Wipro shares advanced 5.7% after the company reported September-quarter revenue above expectations. Elsewhere, Reliance shares fell 0.3%, giving up some ground after gaining 3.4% in the previous session.
The earlier advance had followed the announcement of pricing for the Jio Platforms IPO.HDFC Life declined 2% despite reporting higher quarterly profit. Some brokerages pointed to the company's subdued near-term outlook amid proposed distribution reforms, which overshadowed September-quarter earnings that were in line with expectations.