Tech Mahindra Reports 33.95% Profit Growth with $809 Million in New Deals

Tech Mahindra Ltd., a prominent player in the IT services sector, has announced its fiscal first quarter earnings for FY26, reporting a remarkable net profit of ₹1,140.60 crore (approximately $133 million) for the quarter ending June 30, 2025. This figure represents a substantial increase of 33.95% compared to the net profit of ₹851.50 crore recorded during the same quarter of the previous financial year. Additionally, the company reported revenue from operations of ₹13,351.20 crore, marking a year-on-year increase of 2.66% from ₹13,005.50 crore in Q1FY25. The earnings before interest and taxes (EBIT) stood at ₹1,477 crore, reflecting a growth rate of 34% year-on-year.

In a statement, Mohit Joshi, CEO and Managing Director of Tech Mahindra, attributed this success to disciplined execution and a focused strategy. "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," Joshi noted. The company secured new deal wins worth $809 million during the quarter, representing a staggering 51% increase year-on-year. This achievement underscores Tech Mahindra's expanding footprint in the global IT landscape.

As of the end of Q1FY26, Tech Mahindra's total headcount rose to 148,517, an increase of 897 from the previous year. However, the employee attrition rate increased to 12.6%, up from 11.8% in the previous quarter and 10% in Q1FY25. Rohit Anand, Chief Financial Officer, commented on the operational efficiency, stating, "We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements."

Despite the positive results, analysts from Kotak Institutional Equities warned of potential challenges ahead. They predict a decline in constant currency revenue due to issues in the high-tech vertical and seasonal weakness in the Comviva business, which may offset the benefits from new deal ramp-ups. The brokerage firm expects EBIT margin expansion of 60 basis points quarter-on-quarter, driven by rupee depreciation and cost optimization initiatives.

Tech Mahindra's performance mirrors trends seen among other IT giants, with industry peers such as Tata Consultancy Services (TCS) and HCLTech also reporting steady earnings recently. TCS noted strong deal wins and margin stability, while HCLTech faced profitability pressures despite robust revenue growth.

In summary, Tech Mahindra's Q1FY26 results illustrate a solid operational performance and growing market presence, albeit with some caution from analysts regarding future revenue growth amidst sectoral challenges. The company’s strategy, including its focus on digital transformation and strategic partnerships, positions it well for continued growth in a competitive landscape. Analysts and stakeholders will be closely monitoring Tech Mahindra's forthcoming strategies and market responses as the fiscal year progresses.