Where Will Tech Mahindra’s Share Price Be in 3 Years? Analysts Weigh In on 5G, AI, and Strategic Growth

As leadership shifts and the telecom stalwart pivots to AI and cloud, long-term investors eye strong upside potential

June 19, 2025: Tech Mahindra, long known as the quiet powerhouse of India’s IT services industry, is entering a bold new chapter. While it doesn’t make as many headlines as flashy peers like Infosys or TCS, the company plays a pivotal role in keeping the world connected—literally.

From powering 5G networks and telecom infrastructure to AI-powered platforms and cloud ecosystems, Tech Mahindra is quietly evolving into a well-diversified digital transformation partner. The question for investors is: where will this transformation take its stock price by 2028?

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📌 Company Snapshot: A Telecom Legacy with a Digital Core

• Founded: 1986
• Revenue: US$ 6.2 billion
• Presence: 1,100+ clients across 90 countries
• Employees: 148,000+

About 40% of revenue still comes from telecom—its original DNA—but the company is actively diversifying into BFSI, healthcare, and manufacturing.

Despite a 4.2% telecom dip last year, Tech Mahindra saw 3.4% growth in healthcare and 5.9% in the APJ region, reflecting strategic sectoral rebalancing.

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🔍 Core Strengths Driving the Next 3 Years

🧠 1. AI-First & Platform-Led Strategy

Tech Mahindra has adopted a platform-first, agentic AI model. With 12,000+ employees certified in AI across major hyperscalers, the company is building industry-specific models across insurance, healthcare, and manufacturing.

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🌐 2. Phygital Advantage

Blending physical infrastructure with digital solutions—rooted in Mahindra’s manufacturing legacy—Tech Mahindra is helping global clients in auto, oil & gas, and logistics navigate smart factory transitions.

🤝 3. Smart M&A Playbook

Rather than flashy big-ticket deals, Tech Mahindra opts for strategic tuck-in acquisitions in the $30–50 million range. Recent acquisitions of CTC and two Insurtech platforms have expanded its Europe delivery footprint and insurance tech capabilities.

📊 4. Verticalization for Resilience

It’s no longer just a telecom and hi-tech company. Tech Mahindra is now focused on BFSI, retail, life sciences, logistics, and even travel—creating a risk-diversified revenue stream.

🌱 5. Strong ESG Credentials

Tech Mahindra has featured in the Dow Jones Sustainability Index (World) for seven consecutive years—a badge that not only builds brand but helps attract top global capital and talent.

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📈 So Where Will the Share Price Be in 3 Years?

While it’s impossible to forecast with surgical precision, several indicators provide bullish long-term potential:

• Strong earnings diversification
• Increased AI and cloud service demand
• Strategic presence in Europe via acquisitions
• Strong ESG score for institutional investment appeal
• Expected revival in telecom due to global 5G rollouts

Brokerages like HDFC Securities and Motilal Oswal have suggested that with an earnings CAGR of 13–15% and improving operating margins, Tech Mahindra’s share price could touch ₹2,000–₹2,200 by FY28, from its current range around ₹1,300–₹1,400 (as of June 2025).

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🧠 Final Thoughts

Tech Mahindra may not be the loudest player in India’s IT space, but it’s increasingly becoming one of the most strategically sound bets—especially for long-term investors looking for value in digital infrastructure, AI-led transformation, and telecom rebound cycles.

Investors willing to hold through cycles could see meaningful returns by FY28, as Tech Mahindra doubles down on its AI-first, platform-centric vision of the future.

Tags: Tech Mahindra, Indian IT Stocks, 5G Investments, AI in IT, Telecom Services, Strategic Acquisitions, ESG Tech, Share Price Forecast

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