Tech Mahindra announced its Q1FY26 results on July 16, showing a solid jump in profit and steady revenue growth despite global uncertainty.
The company’s consolidated net profit climbed 34% year-on-year to ₹1,140.6 crore, up from ₹851.5 crore in Q1 last year. Revenue increased by 2.7% YoY to ₹13,351.2 crore. EBIT also grew 34% to ₹1,477 crore.
In dollar terms, revenue rose slightly by 0.4% YoY to $1,564 million. Profit after tax increased by 30.2% to $133 million, with the PAT margin improving to 8.5%.
Tech Mahindra secured new deals worth $809 million in total contract value (TCV). This was higher than $534 million in the same quarter last year and slightly better than $798 million in the previous quarter.
The management noted that deal wins have grown by 44% over the past twelve months, driven by strong momentum across different sectors and regions.
The company’s total workforce grew by 897 employees YoY to reach 1,48,517. However, IT-specific headcount declined by 622 employees compared to last quarter and by 430 over the year.
Attrition in IT rose to 12.6% from 11.8% in the previous quarter and 10.1% a year ago.
Europe was the standout region, growing 11.7% YoY. The “Rest of the World” grew 2.9%, but the Americas declined by 5.9%.
In terms of industries, Banking and Financial Services (BFSI) led with 4.7% growth, followed by Retail, Logistics, and Transport (3.8%) and Communications (2.5%). Meanwhile, Manufacturing fell 4%, and Technology, Media & Entertainment declined 3.3%.
On July 16, 2025, Tech Mahindra share price rose by 1.87% to ₹1,608.50. During the day, the stock opened at ₹1,580.00, touched a high of ₹1,611.00, and a low of ₹1,577.30. The company has a market capitalisation of ₹1.58 lakh crore and trades at a price-to-earnings (P/E) ratio of 33.58. Its dividend yield stands at 2.80%, with a quarterly dividend amount of ₹11.26. Over the past year, the stock has ranged between a 52-week low of ₹1,209.40 and a high of ₹1,807.70.
By the end of Q1FY26, Tech Mahindra had 26 clients generating over $50 million in annual revenue, up from 24 last year. However, the number of clients contributing over $1 million declined to 529, down from 540 in the previous quarter and 545 a year ago.
Tech Mahindra delivered a strong start to FY26 with solid profits, rising deal wins, and continued margin expansion despite global challenges. However, rising attrition and weakness in the Americas and some sectors will be key areas to watch in the coming quarters.
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Published on: Jul 16, 2025, 5:26 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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