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Informist, Thursday, Jul. 16, 2026

 

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--Tech Mahindra Apr-Jun consol net profit INR 14.65 bln
--Analysts saw Tech Mahindra Apr-Jun consol net profit INR 15.80 bln
--Tech Mahindra Apr-Jun consol revenue INR 157.12 bln
--Analysts saw Tech Mahindra Apr-Jun consol revenue INR 154.56 bln
--Tech Mahindra Apr-Jun consol PAT INR 14.65 bln vs INR 13.54 bln qtr ago
--Tech Mahindra Apr-Jun consol sales INR 157.12 bln vs INR 150.76 bln qtr ago
--Tech Mahindra Apr-Jun employee cost INR 78.77 bln vs INR 77.87 bln qtr ago
--Tech Mahindra Q1 IT svcs revenue INR 132.45 bln vs INR 126.61 bln qtr ago
--Tech Mahindra Q1 business process svcs sales INR 24.67 bln vs INR 24.15 bln
--Tech Mahindra Apr-Jun consol revenue up 2.6% QoQ in constant currency
--Tech Mahindra Apr-Jun consol revenue up 6.6% on yr in constant currency
--Tech Mahindra Apr-Jun consol EBIT margin 14.4%, up 60 bps on qtr
--Tech Mahindra Apr-Jun new deal wins $1.08 bln vs $1.07 bln qtr ago
--Tech Mahindra IT svcs headcount 74,689 on Jun 30 vs 75,377 qtr ago
--Tech Mahindra IT services last 12-month attrition 11.8% vs 12.1% qtr ago
--Tech Mahindra Apr-Jun consol EBIT INR 22.64 bln, up 8.6% on qtr
--Tech Mahindra Apr-Jun communications vertical sales down 1.3% on qtr
--Tech Mahindra Apr-Jun mfg vertical sales up 9% on qtr
--Tech Mahindra Apr-Jun BFSI vertical sales up 2.7% on qtr
--Tech Mahindra Apr-Jun tech, media vertical sales down 1.7% on qtr
--Tech Mahindra Apr-Jun revenue from Americas down 0.1% on qtr
--Tech Mahindra Apr-Jun revenue from Europe up 8.1% on qtr
--Tech Mahindra Apr-Jun revenue from rest of the world up 0.6% on qtr
--Tech Mahindra Apr-Jun IT services utilisation 87.0% vs 86.1% qtr ago
--Tech Mahindra Apr-Jun free cash flow $167 mln vs $99 mln qtr ago
 

 

By Eshitva Prakash

 

MUMBAI – Tech Mahindra Ltd. reported a strong June quarter, with consolidated sales in constant currency terms rising double of even the most optimistic estimate. However, its net profit growth in rupee terms fell short of the consensus Street view. The information technology major's earnings before interest and tax margin also expanded, helped by a benign sequential rise in expenses.

 

The company reported sequential consolidated revenue growth of 2.6%, far higher than the 0.3-1.3% sequential rise seen by analysts in constant currency terms. Its revenue was up 6.6% on year in constant currency. In rupee terms, too, the company surpassed the Street view with its revenue rising over 4% on quarter to INR 157.12 billion, far higher than INR 154.56 billion expected by analysts.

 

However, its bottom line growth for the quarter moderated from the trailing quarter. Its net profit rose over 8% on quarter to INR 14.65 billion, lower than the INR 15.80 billion expected by the Street. The Pune-headquartered company's net profit rose over 28% on year.  

 

Tech Mahindra's consolidated earnings before interest and tax for the June quarter added up to INR 22.64 billion, up nearly 9% from the trailing quarter. Its EBIT margin for the quarter expanded 60 basis points sequentially and 330 bps year-on-year to 14.4%. The company's consolidated EBITDA rose nearly 7% on quarter to INR 27.43 billion. Expenses rose just 4% sequentially to INR 135.59 billion. Employee benefit expenses rose just over 1% on quarter to INR 78.77 billion, while costs classified under 'other expenses' rose over 13% to INR 33.02 billion. Subcontracting expenses fell slightly in the June quarter to INR 17.91 billion.

 

"We delivered a strong Q1 performance with broad-based growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum," Chief Financial Officer Rohit Anand said.

 

SEGMENTS, DEAL WINS

Revenues from the company's IT services segment, which contributes the most to its revenue, rose nearly 5% sequentially to INR 132.45 billion in the reporting quarter. Contribution from the smaller business process services segment was almost flat on quarter at INR 24.67 billion. 

 

The company's deal wins for the reporting quarter were slightly higher sequentially at $1.08 billion. Seven more clients with contracts worth over $50 million were added to the company's tally from the year-ago quarter, taking the total count of such clients to 33, according to an investor presentation. The company added six more clients from the year-ago quarter with contracts worth more than $20 million, taking their total count to 66. Its last 12-month deal win value rose over 7% sequentially to $4.06 billion. 

 

VERTICALS, GEOGRAPHIES

Revenues from Tech Mahindra's largest vertical, communications, fell 1.3% on quarter in the June quarter, accounting for 32.3% of the company's overall top line. Its technology, media, and entertainment vertical contributed to nearly 13% revenue in the quarter, and revenue from the vertical was down nearly 2% on quarter. Other than these two verticals, all other verticals logged sequential growth.

 

The banking, financial services, and insurance vertical's revenue rose nearly 3% on quarter and it contributed nearly 17% to the company's top line. Revenue from the manufacturing vertical surged 9% on quarter and it was the second-largest vertical, contributing to 19% of the company's revenue mix. Revenue from the retail, logistics, and transport category rose over 1% in the June quarter. The healthcare and lifesciences vertical registered a 2.5% sequential rise for the quarter under review.   

 

Geography-wise, revenue from the Americas declined 0.1% sequentially in the June quarter to account for 48.6% of Tech Mahindra's overall top line. Meanwhile, contribution from Europe and the rest of the world region grew over 8% and 0.6% on a sequential basis, comprising 27.5% and 23.9% of the company's top line for the quarter, respectively.

 

During the June quarter, Tech Mahindra generated $167 million in free cash flow, increasing its cash surplus from $99 million a quarter ago. The total headcount for its IT services segment stood at 74,689 as of Jun. 30, lower than 75,377 a quarter ago. Tech Mahindra's attrition rate on a last twelve-months basis was 11.8%, an improvement from 12.1% in the trailing quarter. Utilisation in the IT services segment improved to 87% from 86.1% a quarter ago.

 

On Thursday, the company's shares ended nearly 1% higher from Wednesday at INR 1,510.30 on the National Stock Exchange.  End

 

US$1 = INR 96.35

 

Edited by Avishek Dutta

 

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