Tech Mahindra Reports Strong Q2 FY26 Results with 4.8% Revenue Growth, Declares ₹15 Dividend

Tech Mahindra has reported its second quarter financial results for FY26, demonstrating robust performance across key operational parameters. The Mahindra Group IT major posted a net profit of ₹1,195 crore, showing a quarter-on-quarter growth of 4.8% from ₹1,141 crore in the preceding quarter.

Revenue for the quarter stood at ₹13,995 crore, marking a sequential increase of 4.8% compared to ₹13,351 crore in the previous quarter. The results surpassed market expectations on several critical financial metrics.

Financial Performance Highlights

The company’s operating performance improved significantly with Earnings Before Interest and Tax rising 15.1% QoQ to ₹1,699.4 crore.

The EBIT margin expanded to 12.1% from 11.1% in the previous quarter, outperforming the expected 11.7%. This margin expansion represents the eighth consecutive quarter of improvement in profitability metrics.

Dividend Declaration and Capital Allocation

The board of directors declared an interim dividend of ₹15 per share for its shareholders, reflecting strong cash generation and confidence in future prospects. The company maintained robust liquidity with cash and cash equivalents standing at ₹7,287 crore at the quarter’s end.

This financial strength supports both strategic investments and consistent shareholder returns. The dividend announcement aligns with the company’s stated focus on enhancing shareholder value.

Operational Metrics and Efficiency

Total headcount stood at 152,714, reflecting a reduction of 1,559 employees year-on-year, indicating improved operational efficiency. Last Twelve Months IT attrition moderated to 12.8%, demonstrating better talent retention in a competitive market environment.

Days of Sales Outstanding remained steady at 94 days, highlighting effective working capital management. These metrics collectively point to a more streamlined and efficient operational structure.

Management Commentary and Strategic Direction

Mohit Joshi, CEO and Managing Director told CNBC TV18. “We launched TechM Orion, our next-generation AI platform, and TechM Orion Marketplace to help enterprises accelerate autonomous transformation,”.

Tech Mahindra’s focus on artificial intelligence and digital transformation services continues to drive its competitive positioning in the market.

Rohit Anand, Chief Financial Officer, highlighted that “This quarter marks the eighth consecutive period of margin expansion, driven by operational efficiency and disciplined execution.” The deal Total Contract Value surged 57% year-on-year on a last twelve months basis, supported by strong deal conversions.

This robust deal pipeline indicates sustained growth potential for the coming quarters across key verticals and geographies.

Read More: LIC Increases Stake in Tech Mahindra to Over 2%

Conclusion

Tech Mahindra’s second-quarter results demonstrate sustained momentum in revenue growth and profitability improvement. The consecutive margin expansion and robust deal pipeline signal strong operational execution and market positioning.

The dividend declaration reflects management’s confidence in future cash flows and commitment to shareholder returns. The company appears well positioned to capitalise on evolving technology demand trends in global markets.

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