- Tech Mahindra expects 15% EBIT margin in FY27, CEO Mohit Joshi said to NDTV Profit
- Q4FY26 EBIT grew 10.2% QoQ to Rs 2,084 crore, with margin expanding to 13.8%
- FY26 revenue rose 5% QoQ to Rs 15,076 crore, beating analyst estimates
Tech Mahindra Ltd. is slated for robust operational growth in financial year 2027, with margin expanding to the 15% range, Chief Executive Officer Mohit Joshi told NDTV Profit on Wednesday.
"On track to achieve 15% margin range in FY27," he underlined in a post-earnings press conference.
The projection comes after the IT giant reported a healthy Q4 for fiscal 2026, with both top and bottom lines registering a sequential growth in the period under review.
On the operational front, earnings before interest and taxes grew 10.2% to Rs 2,084 crore from Rs 1,891 crore in the previous quarter period and EBIT margin expanded 70 basis points QoQ and 330 bps YoY to 13.8% from 13.1%, meeting analysts' expectations of 13.3% for Q4FY26.
For the financial year ended March 31, 2026, EBIT margin stood at 12.6%, expanding 290 bps from the year-ago period.
Revenue from operations also met Street expectations and rose nearly 5% to Rs 15,076 crore from Rs 14,393 crore quarter-on-quarter. Analysts had estimated the top line to come in at Rs 14,632 crore.
However, even as IT giant's net profit registered a growth of nearly 21% to Rs 1,354 crore from Rs 1,120 crore, it fell short of Bloomberg's estimate of Rs 1,511 crore.
In addition to this, Tech Mahindra's board has recommended a final dividend of Rs 36 per equity share, as part of the company's March quarter earnings for the financial year 2026.
The proposed final payout is in addition to the interim dividend of Rs 15 per share, which was declared and paid in November last year. Once the dividend is approved, the total dividend for the full year FY26 will stand at Rs 51 per share.
In the last quarter, the company had joined its IT peers and suffered a one-time hit after it made provisions for the Centre's new labour codes. The company had registered a consolidated bottom line of Rs 1,122 crore down over 6% from Rs 1,195 crore in the preceding quarter.
Tech Mahindra Share Price
Shares of Tech Mahindra closed 2.5% lower at Rs 1,463.30 apiece on the NSE on Wednesday. This compared to a 0.81% decline in the benchmark Nifty index.
ALSO READ: Tech Mahindra Share Price Today Stock Bounce After In-Line Q4 Results, Dividend
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
