Latest news with #TechMahindra
Mint
3 hours ago
- Business
- Mint
Tech Mahindra Q1: Profit jumps, revenue stalls. What's next for investors?
Tech Mahindra is a leading Indian multinational information technology services and consulting company. It is part of the Mahindra Group. The company operates worldwide, with a presence in over 90 countries and 148,517 employees. It serves clients in various sectors including banking, telecommunications, healthcare, manufacturing, retail, media and public services. In recent years, Tech Mahindra has expanded through strategic acquisitions and enhanced its focus on emerging technologies such as artificial intelligence, internet of things, and blockchain. Tech Mahindra announced its results for the first quarter of FY26 after hours on 16 July. The stock was down slightly the next day. Revenue flat, profit surges Tech Mahindra reported Q1 2026 revenue that was slightly behind estimates, beat on net profit. Let's take a look at what the company achieved in dollar terms. Revenue came in at $1.56 billion, up about 0.4% year-on-year. Earnings before interest and taxes (Ebit) increased 30.2% year-on-year to $172 million. Net profit kept pace with Ebita, also increasing 30.2% year-on-year to $133 million. Free cash flow came in at $86 million. Tech Mahindra's total expenditure fell during the quarter, boosting the bottom line. Revenue from the Americas, which account for the bulk of revenues, fell 5.9% compared to last year. The manufacturing and healthcare & lifesciences verticals shrunk, while BFSI, retail, and logistics & transport grew. New deal wins surged to $809 million from $534 million in the same quarter last year. What did management say? Mohit Joshi, CEO and managing director, said: "Our 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." Rohit Anand, chief financial officer, said, 'We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organisation. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements." AI-related services to lead revenue growth Tech Mahindra has forged key partnerships and is focussing on AI, which should drive growth going forward. It announced a partnership with Nuix, a global leader in AI-powered investigative analytics and intelligence software to provide innovative, scalable solutions for cyber and fraud detection. The partnership will leverage TechM's extensive expertise in AI, digital engineering and cyber risk management to integrate Nuix's advanced investigative and data analytics solutions into its services, unlocking significant global sales opportunities with the Nuix Neo Solutions. Tech Mahindra and KOGO AI, a category-defining provider of agentic AI infrastructure, announced a strategic collaboration to jointly build and deliver next-gen enterprise AI solutions and agents designed for autonomy, scale and compliance. Did the results disappoint? There were no major disappointments, but the 1% decline in constant-currency revenue was a negative. Weakness in the Americas and in key verticals were other areas of concern. Strong profit growth, deal wins and steady margin were the big positives. Some investors expect Tech Mahindra to start its growth trajectory next quarter based on deal ramp-ups. They anticipate that FY26 revenue growth will outpace FY25's, supported by a strong pipeline and large deal execution. Should investors worry? Some of the issues facing the company are industry-specific and not company-specific. Investors worry that though spending on AI-related infrastructure such as data centers is surging, software and IT services growth rates are expected to slow as businesses delay purchase decisions and reduce discretionary IT budgets. For Tech Mahindra specifically, margin expansion this quarter was seen as a positive. Solid growth in profits and strong deal wins were the other big highlights. However, investors remain wary about revenue growth challenges in certain verticals and the Americas. If IT spending by companies remains weak, particularly in the US and Europe, most Indian IT companies will face a challenging year. As always, you should carefully evaluate a company's fundamentals, corporate governance and valuation before making an investment decision. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
Time of India
6 hours ago
- Automotive
- Time of India
TechM to invest in sales, marketing in next 2 years across key markets: Mahindra
IT company Tech Mahindra will invest in sales and marketing as well as learning infrastructure in key markets to enhance its position, Mahindra Group Chairman Anand Mahindra said on Thursday. During the Annual General Meeting of Tech Mahindra , he said that the IT firm has an edge in the area of AI, which is reshaping businesses and society. "Over the next two to three years, the company plans to invest in learning infrastructure and in enhancing market position in key markets by investing in sales, marketing and key service lines across strategic verticals," Mahindra said in response to a question asked by a shareholder. Tech Mahindra has opened a ' Manufacturing Xperience Center ' at its campus in Chennai to help manufacturers quickly prototype and scale AI-driven innovations to address industry challenges such as high operational costs, process inefficiencies, supply chain disruptions, and complex operational hurdles. "We remain open to setting up centres like the one in Chennai and other cities and opportunities will be assessed in collaboration with relevant stakeholders," Mahindra said. He said that Tech Mahindra is simplifying its legal entity structures across jurisdictions as liquidation costs are outweighed by the optimisation benefits. Mahindra emphasised on use of AI with trust and in a responsible manner based on the company's legacy since its inception as a JV with British Telecom. "It is trust that enabled your company to make a success of its counterintuitive decision to acquire Satyam Computers," he said. Mahindra said that Tech Mahindra has adopted AI not merely as a tool but as a powerful force. "I like to think of AI as a brilliant child prodigy born in a library, with access to the entire world's knowledge and an extraordinary capacity to collate and apply it. But like all prodigies, it needs to be nurtured and guided to achieve its full potential for good. Your company recognises its responsibility to apply AI to serve the best interests of our clients and the greater good of society," he said. Mahindra said that TechM is helping its clients harness the full potential of AI. "The next frontier is clear: responsible implementation and measurable returns - the true test of AI's promise," he said. Mahindra, however, did not disclose the contribution of AI to the company's profit. "I would like to believe that our reliance on the twin pillars of trust and effective application of AI is a major contributory factor to the progress your company has made in garnering major logos," he said. Tech Mahindra secured new deals with a Total Contract Value (TCV) of USD 809 million in the first quarter of 2025-26. The company added two clients in the USD 50 million-plus revenue category over the past year. The company has posted a nearly 34 per cent year-on-year increase in consolidated net profit to ₹1,140.6 crore for the quarter ending June 30, 2025, on the back of growth in communications and financial services verticals. The Pune-based company's revenue from operations for the first quarter of 2025-26 grew 2.65 per cent to ₹13,351.2 crore from ₹13,005.5 crore in the same period last year.
Hans India
7 hours ago
- Business
- Hans India
Benchmark indices slip into red amid selling in IT shares
Mumbai: Benchmark stock indices Sensex and Nifty settled lower on Thursday following selling in IT and banking shares and investors remaining in a wait-and-watch mode ahead of the outcome of the US-India trade talks. The 30-share BSE Sensex dropped 375.24 points or 0.45 per cent to settle at 82,259.24. During the day, it fell by 415.21 points or 0.50 per cent to 82,219.27. The 50-share NSE Nifty closed lower by 100.60 points or 0.40 per cent to 25,111.45. Fresh foreign fund outflows and subdued quarterly earnings dented investors' sentiment, experts said. Among Sensex firms, Tech Mahindra declined nearly 3 per cent after its June quarter earnings failed to cheer investors. IT services firm Tech Mahindra reported a nearly 34 per cent year-on-year increase in consolidated net profit to Rs 1,140.6 crore for the quarter ending June 30, 2025, on the back of growth in communications and financial services verticals. Infosys, HCL Tech, Eternal, Larsen & Toubro, Tata Consultancy Services and Axis Bank were also among the laggards. However, Tata Steel, Trent, Titan and Tata Motors were among the gainers. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,858.15 crore on Wednesday, according to exchange data. 'Indian equity benchmarks ended marginally lower as investors exercised caution amid subdued Q1 earnings announcements, particularly in the technology and banking sectors. Market participants remained sidelined due to elevated valuations of large-cap stocks and FII outflows owing to the uncertainty regarding US-India trade deal; however, any positive developments could amplify market sentiment,' Vinod Nair, Head of Research, Geojit Investments Limited, said. The BSE smallcap gauge climbed 0.30 per cent and midcap index went up by 0.07 per cent. Among BSE sectoral indices, BSE Focused IT tanked 1.47 per cent, followed by IT (1.33 per cent), teck (1.06 per cent), bankex (0.51 per cent) and utilities (0.25 per cent). Realty jumped 1.22 per cent, metal climbed 0.62 per cent, commodities (0.42 per cent), healthcare (0.28 per cent) and consumer discretionary (0.25 per cent). 'Markets largely remained in the negative zone amid uncertainty over the impending announcement of the India-US tariff outcome, as investors resorted to selling in banking, IT and oil & gas shares that led the downfall in key benchmarks. Once the deal is announced and if it suits the interests of both the countries, there will be a relief in the markets and we may see short-term spurt, else the sluggish to pessimist mood could continue. 'Also, the ongoing earnings season will have a bearing on the markets, and investors would take positions based on how the results pan out going ahead,' Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Business Recorder
9 hours ago
- Business
- Business Recorder
IT stocks drag India's benchmarks lower
MUMBAI: Indian shares fell on Thursday, weighed down by losses in IT stocks after Tech Mahindra missed quarterly revenue estimates, while uncertainty over US Federal Reserve Chair Jerome Powell's tenure led to caution among investors. The Nifty 50 fell 0.4% to 25,111.45, while the Sensex lost 0.45% to 82,259.24. The Nifty is down 0.15% so far this week. The broader, more domestically focussed smallcaps and midcaps fell 0.1% and 0.2% respectively. Citi downgraded Indian equities to 'neutral' from 'overweight', citing stretched valuations. Asian markets were muted as uncertainty over the future of Fed Chair Powell raised concerns about US monetary policy and capital flows into emerging markets. India's IT companies lost 1.4% on the day, making them the top sectoral losers. Tech Mahindra fell 2.8% after reporting a marginally lower-than-expected revenue a day earlier.
Time of India
10 hours ago
- Business
- Time of India
'Child prodigy' AI needs guidance, says Mahindra
In a world experiencing "unprecedented shifts," with wars escalating and international trade rules being rewritten, building trust and leveraging artificial intelligence ( AI ) are crucial drivers for progress, Tech Mahindra chairman Anand G Mahindra told shareholders on at the company's annual general meeting ( AGM ), Mahindra said AI is "a brilliant child prodigy born in a library, with access to the entire world's knowledge and an extraordinary capacity to collate and apply it.""But, like all prodigies, it needs to be nurtured and guided to achieve its full potential for good," he added.
