Tech Mahindra posted a 4.5% year-on-year dip in Q2 net profit to Rs 1,195 crore, missing estimates, but revenue from operations rose 5.1% to Rs 13,995 crore. The IT firm secured new deals worth $816 million and declared an interim dividend of Rs 15 per share, signaling strong operational momentum and shareholder focus.
Tech Mahindra reported its Q2 FY26 financial results with mixed outcomes but clear strategic progress. The company’s consolidated revenue from operations climbed 5.1% year-on-year, reaching Rs 13,995 crore, driven by growth in banking and manufacturing verticals. On a sequential quarterly basis, revenue rose 4.8%, showcasing steady business momentum amid ongoing global challenges like US tariff uncertainties and visa restrictions.
Despite top-line growth, the company’s consolidated net profit declined 4.5% year-on-year to Rs 1,195 crore, slightly below analyst expectations of Rs 1,287 crore. Sequentially, however, net profit was up 4.7%, signaling operational improvements. Earnings before interest and tax (EBIT) surged 33% year-over-year to Rs 1,699 crore, with an operating margin expansion to 12.1%, reflecting disciplined execution and efficiency gains over eight consecutive quarters.
A major highlight was Tech Mahindra’s new deal wins totaling $816 million in total contract value (TCV) for the quarter. These deals span diverse sectors, including telecom, manufacturing, logistics, insurance, and fintech. Notable engagements include a strategic partnership with a leading European telecom operator for autonomous operations, multi-year agreements for AI-driven IT transformation in logistics and insurance, and expansion initiatives in fintech delivery centers.
The company’s CEO Mohit Joshi emphasized the strength of the growth strategy and highlighted the launch of TechM Orion, the next-generation AI platform designed to accelerate autonomous digital transformation across enterprises. CFO Rohit Anand underscored the strong deal conversions underpinning a 57% year-on-year increase in deal TCV on a last twelve months basis and pointed to the sustained margin expansion as a testament to operational discipline.
Tech Mahindra also declared an interim dividend of Rs 15 per share for FY 2026, payable on or before November 12, 2025, with October 21 fixed as the record date. This interim dividend reflects the company’s commitment to returning value to shareholders amidst ongoing investments in technology and workforce capabilities. The total workforce stood at approximately 152,700 employees, slightly down from the previous year.
Additional operational data included stable days sales outstanding at 94 days and cash and cash equivalents totaling Rs 7,287 crore as of quarter-end, highlighting a healthy liquidity position. Attrition in the IT segment remained at 12.8%, indicating stable talent retention in a competitive environment.
In summary, while the net profit dipped slightly versus estimates, Tech Mahindra’s robust revenue growth, record deal wins, margin expansion, and interim dividend announcement suggest solid execution and long-term growth potential. Their focus on AI-led innovation and broad industry partnerships continues to position the company as a strong player in the evolving IT services landscape.
Key Highlights:
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Consolidated revenue increased 5.1% YoY to Rs 13,995 crore, beating analyst estimates
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Net profit fell 4.5% YoY to Rs 1,195 crore but rose 4.7% sequentially
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EBIT surged 33% YoY to Rs 1,699 crore, with margin expanding to 12.1%
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New deal wins reached $816 million, showing a 35-57% YoY increase
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Launched TechM Orion AI platform to accelerate enterprise digital transformation
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Interim dividend declared at Rs 15 per share; record date October 21, payable by November 12
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Stable operational metrics including days sales outstanding and attrition levels
Source: Moneycontrol, Tech Mahindra official filings, CNBC TV18, Economic Times, NDTV Profit, Business Standard, Times of India, TechCircle, Economic Times of India, Hindustan Times.
