<ul data-eligibleForWebStory="false"><li>Macquarie, a research firm, believes that Tech Mahindra's target of achieving a 15% EBIT margin by FY27 is ambitious and estimates a more realistic margin of 12.5% to 13.5%.</li><li>Tech Mahindra's heavy reliance on the struggling telecom vertical, accounting for over 30% of its revenue, poses challenges for profitability and growth.</li><li>Historical performance suggests achieving the EBIT margin target will be difficult, especially with rising employee costs acting as the primary drag on profitability.</li><li>Macquarie maintains its 'underperform' rating on Tech Mahindra's stock, with a revised target price of Rs 1,090, and favors LTIMindtree over Tech Mahindra for its superior vertical mix and growth potential.</li></ul>

Tech Mahindra's 15% EBIT Margin Target By FY27 A 'Tough Ask'; Stock Remains 'Undervalued', Says Macquarie

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