Tech Mahindra Reports 34% Increase in Q1 Net Profit to ₹1,141 Crore

Tech Mahindra, a prominent player in the IT services sector, announced a significant year-on-year increase in its consolidated net profit for the first quarter of FY26. The company reported a net profit of ₹1,140.6 crore, representing a robust 34% growth compared to ₹851.5 crore during the same period last year. This positive financial performance was revealed on July 16, 2025, following the close of the National Stock Exchange (NSE).

In addition to the profit surge, Tech Mahindra's revenue from operations rose by 2.7%, reaching ₹13,351 crore in Q1FY26, up from ₹13,005 crore recorded in the corresponding quarter of FY25. The earnings before interest and tax (EBIT) also showed substantial growth, climbing 34% year-on-year to ₹1,477 crore.

The company’s performance was bolstered by its IT segment, which reported revenue of ₹11,263.7 crore, reflecting a 3.55% increase from the ₹10,878 crore reported in Q1FY25. However, the Business Process Services (BPS) segment faced challenges, with revenue declining by 1.88% to ₹2,087.5 crore compared to ₹2,127.5 crore in the previous year.

Geographically, the American market contributed significantly, accounting for 49.2% of the company's overall revenue mix, despite experiencing a 5.9% contraction year-on-year. Meanwhile, Europe’s contribution grew by 11.7%, representing 26% of the revenue, while the rest of the world accounted for 24.8%, with a 2.9% increase.

Mohit Joshi, CEO and Managing Director of Tech Mahindra, attributed the company's performance to disciplined execution and a focused strategy. He stated, "Deal wins have increased by 44% on a last twelve months basis, supported by broad-based momentum across verticals and geographies." The company's initiative, "AI Delivered Right," has reportedly gained customer traction since its launch last quarter, driving multiple deal wins and recognition across its core pillars.

Rohit Anand, Chief Financial Officer of Tech Mahindra, emphasized the effectiveness of the company’s ongoing Project Fortius program, which is designed to enhance operational improvements and sustain margins. Anand noted, "We have delivered seven consecutive quarters of margin expansion, a clear reflection of the discipline and focus across our organization."

As of July 16, 2025, Tech Mahindra's shares rose by 1.87% to close at ₹1,608.5 apiece on the NSE. The company boasts a total market capitalization of approximately ₹1.58 lakh crore.

This financial report comes at a time when the IT sector is navigating a complex economic landscape marked by fluctuating demand and the pressing need for digital transformation. The company's strategic focus on artificial intelligence and operational efficiency may position it well for future growth in an increasingly competitive market.

The implications of Tech Mahindra's performance extend beyond immediate financials, hinting at broader trends in the IT industry, including the increasing importance of AI and digital solutions in driving revenue growth. As companies worldwide continue to adapt to technological advancements, Tech Mahindra's results may serve as a bellwether for the sector's overall health.