5 days ago
Tech Mahindra shares in focus after Q1 profit jumps 34% YoY, misses Street estimates
Tech Mahindra shares
will be in focus on Thursday after the IT major reported a 34% year-on-year (YoY) rise in consolidated net profit for Q1FY26 to Rs 1,141 crore, up from Rs 851 crore in the same quarter last year. However, the profit missed Street estimates of Rs 1,211 crore.
Revenue for the quarter rose 2.7% YoY to Rs 13,351 crore, compared with Rs 13,005 crore in Q1FY25—slightly below Street expectations of Rs 13,374 crore.
The fifth-largest IT services company by market capitalisation reported an EBIT of Rs 1,477 crore, up 34% YoY.
The company's dollar revenue stood at $1,564 million in the April–June quarter of FY26, rising 0.4% YoY. Earnings Before Interest and Taxes (EBIT) stood at $172 million, up 30.2% YoY, while the EBIT margin came in at 11.1%, an expansion of 260 basis points YoY.
Net profit in dollar terms was $133 million, also up 30.2% YoY. Free cash flow for the quarter stood at $86 million.
Live Events
Tech Mahindra
secured new deals with a Total Contract Value (TCV) of $809 million during the quarter.
Management Commentary
Commenting on the company's earnings, CEO & Managing Director Mohit Joshi said the performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies, he added.
Meanwhile, Chief Financial Officer Rohit Anand highlighted that Tech Mahindra has delivered seven consecutive quarters of margin expansion, which he said reflects the discipline and focus across the organisation. 'Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements,' Anand said.
The company's IT headcount stood at 79,987—down 622 QoQ and 430 YoY. IT LTM attrition was at 12.6%, up from 11.8% in the previous quarter.
Geography-wise Performance
The company earned 49.2% of its revenue from the Americas, which declined 6% YoY but grew 2.6% QoQ.
Europe contributed 26% to revenue, rising 11.7% YoY and 3.6% sequentially. Revenue from the Rest of the World (RoW) stood at 24.8%, down 4.5% QoQ but up 2.9% YoY.
(
Disclaimer
: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
