Tech Mahindra reported Q1FY26 results with mixed signals. While net new deal wins soared to USD 809 million, both revenue and profit came in slightly below analyst expectations.
Key Takeaways:
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Consolidated revenue from operations stood at Rs 133.51 billion, just shy of the IBES estimate of Rs 133.83 billion
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Net profit was Rs 11.41 billion, trailing the Rs 11.72 billion consensus forecast
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Deal momentum remained strong, with large wins across telecom and BFSI verticals
Operational Trends:
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Margins improved sequentially, supported by rupee depreciation and cost optimization
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BPO segment continued to expand, now contributing over 16 percent to the revenue mix
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Hitech and manufacturing verticals faced headwinds, partially offset by seasonal strength in Comviva
Strategic Focus:
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Project Fortius remains central to margin expansion goals
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Management commentary emphasized GenAIled productivity and rationalization of lowmargin businesses
Sources: The Hindu BusinessLine, Economic Times, Zee Business, Business Standard, News18.