Mahindra & Mahindra Limited has announced the transfer of equity shares from its Employees' Stock Option Trust to stock option grantees on January 21, 2026. The transfer involves 2,796 equity shares distributed among 10 employees who exercised their stock options under the company's Employees' Stock Option Scheme.

Share Distribution Details

The company's ESOP Trust completed the share transfer to employees following the exercise of stock options granted under the established employee stock option scheme. The distribution was communicated to multiple stock exchanges as part of regulatory compliance requirements.

Regulatory Compliance and Exchange Notifications

The transfer was executed in compliance with undertakings given to exchanges at the time of listing shares that were allotted to the Mahindra & Mahindra Employees' Stock Option Trust. Company Secretary Sailesh Kumar Daga signed the notification, which was sent to multiple exchanges including the National Stock Exchange of India, BSE Limited, Luxembourg Stock Exchange, and London Stock Exchange.

ESOP Implementation

The share transfer represents the culmination of the stock option exercise process under the company's employee incentive program. The largest individual allocation of 817 shares went to Ketaki Suklikar, while the smallest allocation of 50 shares was granted to Kedar Apte. The distribution reflects the company's commitment to employee participation in equity ownership through structured stock option schemes.

ICICI Securities has maintained its HOLD rating on Tech Mahindra with a target price of ₹1,600, following what the brokerage termed as the first quarter of comprehensive strong performance in the company's turnaround journey.

Strong Q3FY26 Performance Under New Leadership

Q3FY26 marked a significant milestone for Tech Mahindra as the first quarter demonstrating all-round strong performance since Mohit Joshi took over as CEO in December 2023. The quarter's results have reinforced confidence in the company's strategic direction and operational improvements under the new leadership.

Management's Growth Strategy and Targets

Tech Mahindra's management has reiterated its ambitious target of outpacing large-cap peers in FY27. The company's growth strategy is built on three key pillars:

The company expects its communication vertical to be a key driver of market share wins, which should enable revenue acceleration compared to FY26. Additionally, accounts with USD 20 million revenue-run-rate are growing faster than the company's average, driven by higher cross-sell and up-sell potential.

Margin Improvement Outlook

Tech Mahindra has maintained its target of reaching 15% EBIT margin by the end of FY27. This margin expansion is expected to be largely driven by improvements in gross margins, reflecting the company's focus on operational efficiency and higher-value service offerings.

Revised Financial Estimates

Based on the improving growth trajectory, ICICI Securities has updated its financial projections for Tech Mahindra:

The upward revision in earnings per share estimates reflects the brokerage's confidence in the company's ability to execute its turnaround strategy effectively.

Valuation and Investment Recommendation

ICICI Securities continues to value Tech Mahindra at 19x P/E on December 2027 estimated EPS of ₹84.00, arriving at a target price of ₹1,600. Despite the positive operational developments and improved financial outlook, the brokerage maintains its HOLD recommendation, noting that the stock has already re-rated to price in the anticipated turnaround in earnings.

The HOLD rating suggests that while the company's fundamentals are improving, the current stock price adequately reflects the expected improvements, limiting significant upside potential in the near term.