Tech Mahindra Q2 Profit Rises 32.7% to ₹1,586 Crore, Revenue Up 15.6%

Tech Mahindra, a prominent player in the IT services sector, announced a significant rise in its financial performance for the second quarter of the fiscal year 2027. The company’s profit after tax (PAT) surged by 32.7 percent year-on-year, reaching ₹1,586 crore for July to September 2026. This growth was supported largely by the expansion in its manufacturing and communications business verticals.

Revenue also showed a healthy increase, climbing 15.6 percent compared to the same quarter last year to ₹16,180 crore. Sequentially, the firm posted an 8.2 percent rise in profit and a 3 percent growth in revenue. The top-line figure exceeded the Bloomberg analysts’ consensus estimate of ₹16,027 crore, though the profit fell short of the projected ₹1,642 crore.

One notable highlight from this quarter is Tech Mahindra’s continued success in securing large deals, marking the fourth straight quarter where new contract wins surpassed the $1 billion mark. Year-on-year, these deal wins grew by 25.4 percent, reflecting the firm’s ability to maintain strong customer engagement and trust. Mohit Joshi, the company’s managing director and CEO, emphasized that these wins underscore the company’s sustained business momentum, which is reflected in a 7.2 percent year-on-year growth on a constant currency basis.

Joshi attributed part of this success to Tech Mahindra’s advanced artificial intelligence capabilities, which are embedded within its solutions portfolio. This focus on innovation appears to be driving competitive advantages in winning new contracts and expanding existing client relationships.

Looking ahead, Tech Mahindra has set a financial target to achieve a 15 percent earnings before interest and taxation (EBIT) margin by fiscal year 2025. Joshi noted that the company is already very close to this goal, trailing by just 20 basis points. He reflected on the company’s progress, pointing out that when the margin improvement journey began, Tech Mahindra was experiencing a 5 percent year-on-year decline. The current positive growth rate and consistent performance over the last twelve quarters show the firm’s commitment to hitting this margin target.

Addressing workforce composition, Joshi highlighted that Tech Mahindra’s dependence on US H1-B visas is minimal. Nearly 70 percent of the company’s US workforce comprises American citizens, with the remaining 30 percent filled by visa holders. He further specified that H1-B visa holders represent only about 1 percent of the total employee base worldwide. This approach aligns with the company’s strict compliance policies regarding visa and regulatory requirements globally.

As of the end of September 2026, Tech Mahindra employed 152,206 people, having added 5,446 employees during the quarter. This growth indicates ongoing hiring to support expanding operations.

In addition to financial results, the Pune-based company announced a bonus share issue valued at ₹4.9 billion. This marks the first such issuance since 2015, signaling confidence in future growth prospects. The company also declared an interim dividend of ₹15 per share, offering returns to shareholders amidst the positive performance.

Tech Mahindra operates in a competitive global IT services market, where companies increasingly focus on digital transformation, cloud computing, and artificial intelligence. The firm's recent results demonstrate its ability to capitalize on these trends, delivering growth in revenue and profitability. Continued large deal wins and investment in technology capabilities are likely to play a crucial role in sustaining this momentum going forward.