Tech Mahindra’s net profit increased 18.6 per cent sequentially at ₹1,166 crore in the March-ending quarter, led by EBIT improvement of 40 bps sequentially and one-off tax gains. Revenue growth was almost flat at ₹13,384 crore and EBITDA rose by 3.2 per cent on a quarterly basis to ₹ 1,867 crore, largely led by Comviva numbers and revenue from the BFSI sector.

On a yearly basis, profit increased by 76.5 per cent, revenue increased by 3.9 per cent and EBITDA rose by 32.6 per cent. Rohit Anand, Chief Financial Officer, Tech Mahindra, said: “This year, we delivered operational excellence by achieving a 60 per cent increase in operating profit through strong execution, operational leverage, and cost management. We raised our dividend per share by 12.5 per cent and returned 85 per cent of our free cash flow to shareholders, reflecting our commitment to capital allocation policy.”

In US dollar, net profit increased 17.3 per cent sequentially and revenue dropped by 1.2 per cent. EBITDA margins went up 40 bps to 10.5 per cent sequentially. Annually, profits went up by 76.7 per cent, revenue went down by 0.2 per cent and EBITDA margins went up by 360 bps y-o-y. Joshi added the margin target for FY26 is at 15. 

Mohit Joshi, CEO and Managing Director, Tech Mahindra, said: “Through strategic investments in our people, leadership, and capabilities, we have positioned ourselves to accelerate our strategic roadmap. Our deal wins at $2.7 billion, reflect a 42 per cent year-on-year increase and are a clear validation of the depth of our client partnerships.”

Vertical focus

BFSI showed positive growth both annually and sequentially but the company emphasised that Communications remains an important client base, as well as hi-tech.

“Telecom has always been a central piece of the tech-end story. We have a combination of services and software offerings in the space. Comviva that caters largely to telco industry has grown at double-digit rates this year. So our focus on telecom continues. At the same time, hi-tech is an important client-base for us. We saw softness this quarter but we’re optimistic about the long-term opportunities,” said Joshi.

Regarding vertical performance, Joshi said the environment has materially changed since January, especially in industrial manufacturing, particularly in the auto segment.

“There is a relook at discretionary spending and there is volatility as far as overall spending is concerned. Also the hi-tech sector is among the first to react to market shifts. Our diversified global portfolio has helped us in this case,” said Joshi.

Q4 headcount

The company reported a headcount 148,731 employees by the end of Q4 from 150,488 employees in the previous year, The attrition rate grew to 12 per cent.

Tech Mahindra signed a lab asset takeover deal with a major Tier-1 Telco in US to strengthen its Wireless Device Test Labs and Engineering business. It was also selected by a global leader in enterprise applications to provide Managed TechOps Services for the end customers of its flagship enterprise platform. Tech Mahindra will leverage its Digital Enterprise Applications, Cloud & Infra Services, Next-Gen Services and Engineering Services capabilities to cover the entire lifecycle of their Private Cloud Infrastructure — including Build, Migrate, Operate, and Decommission, enabling scale, cost reduction and efficiency gains without compromising quality.

Published on April 24, 2025