Tech Mahindra Posts 76% Surge in Q4 Net Profit, Recommends Rs 30 Final Dividend

Tech Mahindra reported a consolidated profit after tax (PAT) of Rs 1,167 crore for the fourth quarter of FY25, marking a 76.5% year-on-year rise and an 18.7% sequential increase. For the quarter ending March 31, the Mahindra Group company's revenue stood at Rs 13,384 crore, up 4% YoY. EBIT for the quarter came in at Rs 1,405 crore, with margins improving to 10.5%.

In dollar terms, Q4 revenue was $1.55 billion, down 1.2% quarter-on-quarter but flat year-on-year. PAT for the quarter reached $136 million, a 70.8% increase from a year earlier.

The board has recommended a final dividend of Rs 30 per share, bringing the total dividend for the year to Rs 45 per share. Diluted earnings per share (EPS) for FY25 stood at Rs 47.91.

“Through strategic investments in our people, leadership, and capabilities, we have positioned ourselves to accelerate our strategic roadmap. Our deal wins of $2.7 billion reflect a 42% year-on-year increase and are a clear validation of the depth of our client partnerships,” said Mohit Joshi, CEO and Managing Director of Tech Mahindra.

On a full-year basis, the IT services firm’s PAT surged 80.3% YoY to Rs 4,252 crore. EBIT for the year rose 63.3% to Rs 5,138 crore, while revenue increased modestly by 1.9% to Rs 52,988 crore. EBIT margins expanded by 360 basis points to 9.7%, supported by operational efficiencies and improved cost control.

In dollar terms, annual revenue was flat at $6.26 billion, while PAT grew 76.7% to $502 million and EBIT climbed 60% to $607 million. The company reported free cash flow of $613 million and total deal wins worth $2.7 billion for the year.

“This year, we delivered operational excellence by achieving a 60% increase in operating profit through strong execution, operational leverage, and cost management. We raised our dividend per share by 12.5% and returned 85% of our free cash flow to shareholders, reflecting our commitment to our capital allocation policy,” said Rohit Anand, CFO of Tech Mahindra.

Despite a decline in headcount by 1,757 employees during the quarter, the company’s total workforce stood at 148,731. The IT attrition rate over the last twelve months was 11.8%. Days of Sales Outstanding (DSO) remained stable at 88 days compared to Q3 and improved by 4 days year-on-year.