Tech Mahindra Q4 Results Preview: Profit Likely To Rise 10%, Margin To Be Flat

Tech Mahindra Ltd.'s net profit is likely to rise in the quarter ended March 2025 amid a weak demand environment, as per the consensus estimate of analysts tracked by Bloomberg.

The information technology firm's revenue is expected to rise marginally by 1% on a sequential basis to Rs 13,460 crore, according to the estimate. The bottom line is estimated at Rs 1,084 crore, which could mark a 10% sequential increase.

The company is scheduled to declare the quarterly results on Thursday.

• Revenue seen 1% higher at Rs 13,460 crore versus 13,286 crore.

• EBIT seen 3% higher at Rs 1,394 crore versus Rs 1,357 crore.

• Margin at 10.3% versus 10.2%.

• Profit seen 10% higher at 1,084 crore versus Rs 983 crore.

Nuvama expects a 0.7% sequential decline in constant currency terms and 1.5% decline in dollar terms with benefit of reversal of furloughs and Comviva seasonality will be offset by headwinds in hi-tech and few low-margin deal closures.

"Margins shall remain flat QoQ, despite wage hike. We shall watch out for the management comments on the FY27 revenue and margin guidance, and their progress on it," it noted.

A revenue growth of 6.5% YoY, driven by the BFSI, healthcare and technology, media and entertainment is expected. The EBIT margin is expected to expand 570 basis points YoY, driven by reduced subcontractor cost and improved operational efficiency under Project Fortius, partially offset by wage hike, according to Deven Choksey.

Citi Research expects revenue growth of 0.2% sequentially in constant currency terms with a 30-basis-point cross currency impact. "Margins likely to improve QoQ despite some wage hike impact as management continues to focus on cost optimisation. Expect deal TCV to be in the range of $600-800 million," it said.

Kotak Institutional Equities forecasts revenue decline due to weak hi-tech vertical and seasonal weakness in the BPO business. "These headwinds will more than offset the tailwind from Comviva seasonality. We expect a 30 bps increase in EBIT margin resulting from benefits of project Fortius. This will offset headwinds from wage revisions. Rupee depreciation will help," it said.

Forecast for net new deal wins is $750 million, an improvement sequentially and material increase YoY. New deals are expected to be won at a higher margin. While a solid FY26 on profitability is expected, revenue growth is to be weaker due to rationalisation of low-margin businesses, according to the brokerage.

• Impact of tariffs, weak demand scenario.

• Margin improvement.

• Deal pipeline.

• Commentary on project ramp-down and cancellations.