Investment Rating - The report aligns with the positive outlook from CITIC Lyon Research, indicating a strong performance from TechM in Q3 FY2026, with expectations for growth above industry averages and an EBITDA margin target of 15% by FY2027 [4]. Core Insights - TechM reported significant positive surprises in order volume, revenue growth, and margin improvement, showcasing confidence in achieving growth targets [4]. - The company experienced a strong quarter-on-quarter revenue growth of 1.7% at constant exchange rates, driven by unexpected performance in telecom, manufacturing, high-tech, and retail sectors, while the BFSI sector showed weakness [4]. - TechM's net new order value reached $1.096 billion, with a quarter-on-quarter increase of 34% and a year-on-year increase of 47%, including a major five-year contract worth over $500 million with a large European telecom client [5]. - The EBITDA margin improved to 13.1%, exceeding Bloomberg consensus expectations, primarily due to enhanced gross margins and a slight increase in utilization rates [5]. Summary by Sections Company Overview - TechM is a global IT service provider offering software development, digital transformation, and business process outsourcing solutions, with a workforce of 157,000 and FY2022 revenue of $6 billion [8]. - Revenue distribution is primarily from telecom (40%), with manufacturing and BFSI each contributing 16%, and North America accounting for 50% of total revenue [8]. Revenue Breakdown - IT services account for 85.2% of revenue, while business process outsourcing contributes 14.8% [9]. Stock Information - As of January 16, 2026, TechM's stock price was 1,670.55 INR, with a market capitalization of $17.08 billion [11]. - The stock has a 12-month high of 1,722.25 INR and a low of 1,272.2 INR [11]. - The market consensus target price is 1,623.13 INR [12].