IT major Tech Mahindra posted weaker-than-expected net profit for the quarter ended June 30, as the consolidated bottomline came in at Rs 1,465 crore, as against the consensus estimate of Rs 1,607 crore shared by the analysts tracked by Bloomberg.
On a sequential basis, the net profit rose by 8.2% from Rs 1,354 crore in the quarter ended March.
The company’s revenue from operations was in line with the estimates, rising 4.2% sequentially to Rs 15,712 crore. In the preceding quarter, it stood at Rs 15,076 crore.
The earnings before interest and taxes (EBIT) jumped by 9.2% to Rs 2,264 crore, as against Rs 2,073 crore in the preceding quarter.
The EBIT margin rose by about 70 basis points to 14.4%, as compared to 13.7% in the January-March period.
ALSO READ: Tech Mahindra Q1 Attrition Slips To 11.8%; IT Headcount Falls Below 75,000
TechM Q1FY27 Highlights (Cons, YoY)
- Net profit up 8.2% to Rs 1,465 crore from Rs 1,354 crore (Estimate of Rs 1,607 crore)
- Revenue up 4.2% to Rs 15,712 crore from Rs 15,076 crore (Estimate of Rs 15,422 crore)
- Ebit up 9.2% to Rs 2,264 crore from Rs 2,073 crore (Estimate of Rs 2,168 crore)
- Margin up 70 basis points to 14.4% from 13.7% (Estimate of 14.1%)
In constant currency terms, Tech Mahindra’s revenue grew 2.6% sequentially to $1.66 billion. The total contract value of new deal wins jumped by 33.3% year-on-year to $1.08 billion.
“Three consecutive quarters of deal wins exceeding $ 1 billion dollars underscores the resilience of our business and the growing relevance of our offerings. Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY,” said Mohit Joshi, the company’s CEO.
Tech Mahindra’s attrition rate dipped to 11.8% during the first quarter, as compared to 12.1% in the January-March period, even as its employee count fell by 688. The overall headcount stands at 146,760.
In the IT division, which forms the core of the company’s operations, the count has decreased from 75,377 to 74,689.
Tech Mahindra’s Chief Financial Officer Rohit Anand, in his post-earning remarks, said the company is focussing on margin expansion and disciplined working capital management, which is reflecting in consistent execution and sustained business momentum. “We remain committed to building a future-ready organization through continued investments in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent—while maintaining a clear focus on growth and operational rigor.”
Before the results were declared, shares of Tech Mahindra settled 1.13% at Rs 1,515.6 apiece on the NSE, as compared to a flat close for the Nifty 50.
ALSO READ: Wipro Q1 Results: Net Profit Falls 4.3%, Margins Narrow; Dividend Declared
Essential Business Intelligence,
Sharp Market Insights,
Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
