Tech Mahindra Q1 Results: Profit Down Over 2% But Meets Estimates
The company's IT services segment grew 0.7% over the quarter, while the business process services segment showed stronger momentum.
Tech Mahindra Ltd.'s profit for the April-June period fell 2.2% on a sequential basis, meeting analysts' estimates.
The software services provider's bottom line stood at Rs 1,140 crore during the first quarter of the financial year ending March 2026, compared to Rs 1,378 crore clocked in the preceding quarter, according to its notification to the exchanges on Wednesday. Analysts tracked by Bloomberg had pegged the profit at Rs 1,198 crore.
While profit declined, revenue was relatively flat at Rs 13,351 crore for the quarter ended June. The IT giant posted a USD revenue of $1,564 million, up 1% quarter-on-quarter and 0.4% year-on-year. However, revenue in constant currency terms declined 1.4% sequentially and 1% on a yearly basis, reflecting underlying headwinds in key segments.
Tech Mahindra Q1 FY26 Highlights (Consolidated, QoQ)
Revenue down 0.2% to Rs 13,351.2 crore from Rs 13,384 crore (Bloomberg estimate: Rs 13,422 crore).
EBIT up 7% to Rs 1,477.1 crore from Rs 1,378 crore (Bloomberg estimate: Rs 1,480 crore).
EBIT margin expands by 80 basis points to 11.1% from 10.3% (Bloomberg estimate: 11.02%).
Profit down 2% to Rs 1,140.6 crore from Rs 1,378 crore (Bloomberg estimate: Rs 1,198 crore).
The company’s IT services segment grew 0.7% over the quarter, while the business process services segment showed stronger momentum, up 2.9% quarter-on-quarter. Tech Mahindra continues to prioritise profitability, with Chief Executive Officer Mohit Joshi reiterating the company’s focus on margin and revenue improvement.
The total headcount reached 1,48,517, marking an increase of 897 on a yearly basis. Attrition in the IT segment rose marginally to 12.6% on a last-12-month basis, compared to 11.8% in the previous quarter. Days sales outstanding increased to 95 days, up by two days year-on-year, while cash and cash equivalents at the end of the quarter stood at Rs 8,072 crore, providing a strong liquidity buffer.
Commenting on strategic developments, Joshi highlighted engagements with a major US railroad client and a leading retail brand for digital transformation services. The company has also added two clients in the $50 million-plus category.
"Despite headwinds, we are innovating and our client engagement remains strong," the CEO said. Tech Mahindra currently deploys over 200 AI agents across its businesses, underlining its commitment to scaling digital capabilities.
