Tech Mahindra Q1 FY27 Results: Net Profit Rises 28.4%, Revenue Surges 17.6%; EBIT Margin Expands

IT major Tech Mahindra posted its earnings for the quarter ended June 2026 today, July 16. The IT major posted a consolidated net profit of ₹1,465.1 crore, up 28.4% as against ₹1,140.60 crore in the same quarter last year, and up 8.2% sequentially from ₹1,354 crore in Q4 FY26.

Meanwhile, its revenue from operations rose 17.6% to ₹15,712 crore versus ₹13,351 crore in the year-ago period, and 4.2% QoQ from ₹15,076 crore in the March quarter of FY26. In constant currency terms, revenue rose 2.6% QoQ and 6.6% annually at $1,660 million.

At an operational level, EBIT (earnings before interest and taxes) stood at ₹2,264 crore, registering a growth of 8.6% QoQ from ₹2,073 crore. The EBIT margin also increased 60 basis points to 14.4% in Q1 FY27, in contrast to 13.8% recorded in the previous quarter.

Total expenses rose 13.4% YoY to ₹13,559.3 crore, compared with ₹11,951.9 crore in the corresponding quarter last year. Employee benefit expenses increased 5% to ₹7,876.6 crore, while subcontracting costs jumped 36.6% to ₹1,790.9 crore. Other expenses rose 26.7% YoY to ₹3,301.9 crore. Finance costs increased 43.1% to ₹111.3 crore, while depreciation and amortisation expenses rose 4.5% to ₹478.6 crore.

Tech Mahindra reported free cash flow of $167 million for the period. Basic earnings per share (EPS) expanded to ₹16.53 apiece in the first quarter, compared to ₹12.87 per share in the same period a year earlier.

The IT business segment's revenue grew 17.6% YoY to ₹13,245 crore, with segment profit rising 39.9% to ₹2,903 crore. The business process services (BPS) segment recorded an 18.2% increase in revenue to ₹2,466.9 crore, with segment profit up 30.4% YoY to ₹437.6 crore.

New deal wins came in at $1.078 billion during the quarter, marking a 33.3% year-on-year increase and the third consecutive quarter in which deal wins exceeded the $1 billion mark. The number of clients contributing annual revenue of $50 million or more rose to 33, compared with 26 a year ago, while clients generating $10 million or more in annual revenue increased to 115 from 108 in the corresponding period last year.

During the quarter, Tech Mahindra acquired an 85% stake in Canada-based Alluri Technologies (Avant) for ₹187.5 crore on May 27. The company has also agreed to acquire the remaining 15% stake after three years, subject to performance-related conditions.

Tech Mahindra's geographic revenue mix was led by the Americas, contributing 48.6% of total revenue, reflecting a marginal decline of 0.1% QoQ and growth of 4.8% YoY. Europe accounted for 27.5% of the mix, recording an increase of 8.1% QoQ and 12.1% YoY, while the Rest of the World (ROW) contributed 23.9%, with a QoQ rise of 0.6% and annual growth of 2.5%.

For Q1 FY27, the company reported a total headcount of 146,760, reflecting a decline of 863 employees on a sequential basis. Its last twelve months (LTM) IT attrition eased to 11.8% from 12.1% in the March quarter. Cash and cash equivalents at the end of the quarter stood at ₹9,695 crore.

Against Street estimates, the print came in mixed: dollar revenue of $1.66 billion topped street estimates of $1.64 billion, while rupee revenue of ₹15,711.9 crore also beat estimates of ₹15,486 crore. EBIT of ₹2,264 crore exceeded the ₹2,211 crore estimate, and EBIT margin of 14.4% came in marginally ahead of the 14.3% Street forecast. Net profit, however, missed the poll estimate of ₹1,694 crore.

Tech Mahindra Q1 FY27 Results: Management Commentary

CEO and Managing Director Mohit Joshi said YoY growth of 6.1%, coupled with three consecutive quarters of deal wins exceeding $1 billion, underscores the resilience of the business and the growing relevance of its offerings. He added that the company's $50 million-plus client base was up by seven during the quarter, with all verticals delivering growth YoY.

CFO Rohit Anand said the company delivered a strong Q1 performance with broadbased growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum. He added that Tech Mahindra remains committed to building a future-ready organisation through continued investment in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent, while maintaining focus on growth and operational rigour.

Tech Mahindra Share Price

Shares of Tech Mahindra settled at ₹1,510.30 apiece on the National Stock Exchange on Thursday, rising 0.77%, with the results announced after market hours. The stock has gained nearly 5% over the last month, while declining more than 9% over the last six months.

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