Lic increases the importance in these IT shares despite a decrease of 10% this year

State ownership insurer and institutional investors Life Insurance Corp (LIC) has increased its interest in Tech Mahindra, even if the IT shares have fallen by 10% this year so far. The largest insurer in the country now has 10.84% ​​of Tech Mahindra, an increase of approximately 8.8% earlier, according to a disclosure of the shareholders.

The move comes at a time when investor sentiment on Indian IT shares is modest because of weak global technical editions. However, LIC’s decision signals the confidence in the long-term potential of the fourth largest IT service provider in the country.

This year it confronted with sales pressure, but Tech Mahindra did better compared to peers. Infosys fell by more than 20%, TCs by around 23%and Wipro shares fell by 15%.

From June 2025, the promoters of Tech Mahindra have 35%, while the public, including institutions, owns around 65%.

Among other things, large institutional investors, SBI Life Insurance has just over 1%, while investment funds such as SBI Nifty 50 ETF, ICICI Prudential Technology Fund and Kotak Flexicap Fund are also prominent.

Together, insurance companies have 13.6% of the company, with only LIC only good for more than 10%. This makes LIC one of the largest institutional shareholders in Tech Mahindra.

What analysts say

According to Axis Securities, Tech Mahindra’s diversified verticals and strong global presence remain important positives.

The company serves more than 1,100 customers in sectors such as communication, BFSI, production, technology, health care and logistics, with activities in more than 90 countries. The top 10 of customers contribute to about a quarter of income.

The brokerage notes that Tech Mahindra has increased investments under the Fortius project, aimed at cost optimization and portfolio integration. It is also focused on deal victories and artificial intelligence. The company reported the total contract value (TCV) of $ 809 million in Q1FY26, an increase of 51% on an annual basis.

Axis Securities expects the EBIT margins to expand to 15% by FY27, supported by operational efficiency, stronger deal conversions and widely based recovery in IT question. It appreciates the shares at the current levels and has a ‘buy’ rating with a target price of RS 1.660.