The development triggered concerns that SpaceX could emerge as a stronger competitor to traditional wireless operators by combining satellite connectivity with terrestrial mobile network capabilities. However, the extent to which the expansion could affect established telecom operators remains uncertain, given the infrastructure and regulatory requirements involved.

The weakness in global telecom stocks weighed on Tech Mahindra, which provides technology consulting, IT and network services to telecommunications companies. Communications is the company's largest revenue-generating vertical, accounting for 32.3% of revenue in Q1 FY27. Concerns over intensifying competition among telecom operators could raise questions about future technology spending, although the impact on Tech Mahindra's business remains uncertain.

Tech Mahindra is a leading global provider of technology consulting and digital solutions, serving enterprises across industries with a strong presence in telecom, enterprise, and digital transformation services.

On a consolidated basis, the company's profit after tax (PAT) rose 28.45% year on year (YoY) to Rs 1,465.1 crore in Q1 FY27 from Rs 1,140.6 crore in Q1 FY26. On a sequential basis, PAT increased 8.22% from Rs 1,353.8 crore in Q4 FY26. Revenue from operations rose 17.68% YoY and 4.22% quarter on quarter (QoQ) to Rs 15,711.9 crore in Q1 FY27 from Rs 13,351.2 crore in Q1 FY26 and Rs 15,076.1 crore in Q4 FY26.

Tech Mahindra has scheduled a board meeting on 15 and 16 October 2026 to consider a proposal for the issue of bonus shares, along with an interim dividend for financial year 2026-27.

The company said its board will also consider and approve the audited standalone and consolidated financial results for the second quarter and half year ended 30 September 2026. The financial results will be considered and declared on 15 October 2026.