Shares of Tech Mahindra hit a 10% upper circuit on 26 April after the company’s CEO and MD, Mohit Joshi, unveiled a three-year roadmap to optimise margin improvement and achieve better revenue growth than the peer average by FY27.

Following consecutive negative monthly returns in February and March, Tech Mahindra shares have risen by more than 7% in April. 

According to Joshi, the turnaround will occur in stages based on the fiscal year. Tech Mahindra plans to start a “turnaround phase” in FY25, during which the business will focus on anchoring the new organisation and investing in crucial accounts, markets, and service lines. The tasks at hand will include integrating front-end portfolio firms, focusing on the turbocharge program for significant account growth, and launching Project Fortius for cost optimisation.

Joshi unveiled his “Vision 2027,” which concentrated on leveraging synergies with larger Mahindra Group companies and investing in and modernizing the organisation in stages.

The company revealed Project Fortius, a three-year plan that will see management concentrating on several levers to boost profit.

Project Fortius is expected to make headway toward cost savings, and investments will continue during the company’s “Stabilisation Phase,” which will commence in FY26.

With continued pyramid improvement and an enhanced long-term structural mix, the business believes it will start “Reaping Returns” by FY27. The company will work even harder to grow its manufacturing, BFSI, telco, and AI verticals.

With a clear focus on top line growth, Tech Mahindra is not content with just meeting industry standards. The company aims to surpass the peer average of the top six-seven IT services providers, a bold ambition that is sure to excite financial analysts. Furthermore, Tech Mahindra plans to raise its EBIT margin to an impressive 15% by the end of FY27, demonstrating its commitment to financial excellence.

At 12: 01 pm, the shares of Tech Mahindra were trading % higher at Rs 1,290.45 on NSE.