Tech Mahindra Ends FY26 on a Positive Note With 21% Profit Jump

Tech Mahindra on Wednesday, April 22, reported a consolidated net profit of ₹1,353.8 crore for the quarter ended March 31, a sequential rise of 20.7%. Despite the growth, the numbers fell short of Street expectations.

Revenue for the January–March quarter came in at ₹15,076.1 crore, up 4.7% from the previous quarter. IT revenue, specifically, stood at ₹12,660.8 crore, growing 4.8% quarter-on-quarter.

At the operating level, earnings before interest and tax (EBIT) rose 10.2% sequentially and 48.3% year-on-year (YoY) to ₹2,084 crore, with EBIT margin improving to 13.8%. Profit after tax grew 16% on an annual basis, while earnings per share stood at ₹15.24.

The company also declared a final dividend of ₹36 per equity share for FY26, taking the total payout for the year to ₹51 per share, inclusive of the interim dividend.

Deal Wins Stay Above $1 Bn

On the business front, Tech Mahindra reported strong deal momentum, with quarterly deal wins staying above the $1 billion mark for consecutive quarters. The company said this reflected improved client spending and deal conversion. Large, multi-year engagements were secured across telecom, banking, manufacturing, and energy verticals, spanning AI-led transformation and managed services deals.

Mohit Joshi, CEO and Managing Director of Tech Mahindra, said the company was accelerating its shift to an AI-led organisation, embedding artificial intelligence across its services and expanding capabilities for clients. "This is reflected in our highest deal wins in recent years including consecutive quarters exceeding $1 billion. We remain focused on scaling with discipline and are on track to delivering our FY27 commitments," he said.

Total headcount at the end of the quarter stood at 1,47,623, with attrition remaining stable at 12.1%. Cash and cash equivalents were at ₹8,456 crore.

On the stock exchanges, Tech Mahindra shares staged a partial recovery after the earnings announcement, bouncing 7% off the day's low, though they remained 2.5% lower at ₹1,464 in late afternoon trade.