Life Insurance Corporation of India (LIC) has increased its stake in IT services firm Tech Mahindra by about 2% through the open market. The insurance behemoth disclosed in a regulatory filing today, September 16, that it bought 1.96 crore shares of Tech Mahindra between June 06, 2025, and September 15, 2025.
As a result of this transaction, LIC’s overall stake in the company crossed 10%, reaching 10.84% or 10.61 crore shares. According to Trendlyne shareholding data, LIC has been maintaining a stake in the Mahindra Group company since 2015.
At the end of the June quarter, promoters (Mahindra and Mahindra) held a 35% stake in the company, while FIIs and DIIs owned 23.3% and 32.3%, respectively. The remaining 9.4% was held by general public shareholders.
Some of the mutual funds that currently hold a stake in the company are Kotak Flexicap Fund, ICICI Prudential Technology Fund, and Tata Digital India Fund.
Meanwhile, in its latest note, global brokerage firm Jefferies has trimmed its target price on the stock to ₹1,315 apiece from the earlier target of ₹1,400 and maintained its ‘Underperform’ rating, as the brokerage believes that rising AI adoption could impact the company’s revenue. Jefferies also said Tech Mahindra has relatively higher exposure to AI-led revenue deflation.
Jefferies expects AI to drive a 5–35% productivity boost across consulting, application services, infrastructure services, and BPO services, with the largest gains in application services and BPO.
Based on productivity-led cost savings and service mix, they project existing IT services revenue to face an average deflation of 20% by FY30. Among major IT firms, Infosys and HCLTech are seen as having lower risk of AI-driven revenue deflation, while Tech Mahindra and Wipro face higher exposure.
Tech Mahindra stock recovers 27% from April lows
The company’s shares have recovered sharply from their April lows, regaining 27% to trade at the current price of ₹1,531. In July, the stock crashed 13.24%, marking its biggest intraday drop since June 2022, after investors were disappointed with the company’s June quarter performance.
Following rising expectations of a US Federal Reserve rate cut and value buying at lower levels, the stock managed to end August with a modest gain of 1.20%. In the current month so far, it has risen by another 3.38%, yet it still remains below its 52-week high of ₹1,807, recorded in December 2024.
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