Tech Mahindra Q1 Results 2026: Consolidated net profit rises over 28% to ₹1,465 crore, revenue up 15% - Key takeaways

Tech Mahindra Q1 Results 2026: IT major Tech Mahindra posted its earnings for the quarter ended June 2026 today, July 16. The IT major posted a consolidated net profit of ₹1465.1 crore, up 28.4% as against ₹1,140.60 crore in the same quarter last year. Meanwhile, its revenue from operations rose 15% to ₹15,605.50 crore versus ₹13,569.5 crore in the year-ago period.

Tech Mahindra reported revenue of $1.66 billion during the June quarter, registering a 6.1% increase year-on-year and a 2.2% rise compared with the March quarter. In constant currency terms, revenue grew 6.6% year-on-year and 2.6% sequentially.

The stock ended 1.15% higher at ₹1515.85 per share on BSE.

Net Profit

The IT major reported a consolidated net profit of ₹1,465.1 crore for the June quarter, marking a 28.4% increase from ₹1,140.60 crore in the corresponding period last year. On a sequential basis, net profit rose 8% from ₹1,356.4 crore reported in the March quarter.

Revenue from operations

The firm's revenue from operations rose 15% to ₹15,605.50 crore in Q1FY27 versus ₹13,569.5 crore in the year-ago period. On a QoQ basis, it was up over 4% versus ₹15,076.10 crore in Q4FY26.

EBIT

Earnings before interest and tax (EBIT) climbed 53.3% year-on-year to ₹2,264 crore. The company's EBIT margin expanded by around 330 basis points to 14.4%.

On a sequential basis, EBIT increased 8.6%, while the EBIT margin improved by nearly 60 basis points.

Expenses

Total expenses rose 13.4% year-on-year to ₹13,559.3 crore, compared with ₹11,951.9 crore in the corresponding quarter last year.

Employee benefit expenses increased 5% to ₹7,876.6 crore, while subcontracting costs jumped 36.6% to ₹1,790.9 crore. Other expenses also rose 26.7% year-on-year to ₹3,301.9 crore.

Finance costs increased 43.1% to ₹111.3 crore, while depreciation and amortisation expenses rose 4.5% to ₹478.6 crore.

Segment-wise performance

Revenue from the information technology business grew 17.6% year-on-year to ₹13,245 crore, while the segment's profit increased 39.9% to ₹2,903 crore.

The business process services (BPS) segment reported an 18.2% increase in revenue to ₹2,466.9 crore. Segment profit for the business rose 30.4% year-on-year to ₹437.6 crore.

From a geographical perspective, Europe delivered the strongest growth, with revenue increasing 12.1% year-on-year. Revenue from the Americas rose 4.8%, while the Rest of the World business recorded 2.5% growth.

Among key industry verticals, manufacturing posted the highest growth with revenue rising 17.2%. Revenue from the banking, financial services and insurance (BFSI) segment increased 8.1%, while the communications vertical recorded 1.3% growth.

Deal wins

Tech Mahindra's new deal wins rose 33.3% year-on-year to $1.08 billion during the quarter. The company said this marked the third consecutive quarter in which total deal wins exceeded $1 billion.

The number of clients contributing annual revenue of at least $50 million increased to 33, compared with 26 a year ago. The number of clients generating annual revenue of $10 million or more also increased to 115 from 108 in the corresponding period last year.

During the quarter, Tech Mahindra acquired an 85% stake in Canada-based Alluri Technologies (Avant) for ₹187.5 crore on May 27. The company has also agreed to acquire the remaining 15% stake after three years, subject to performance-related conditions.

Headcount and attrition

Tech Mahindra's total workforce stood at 146,760 employees at the end of the June quarter, a decline of 863 employees on a sequential basis.

Headcount in the IT business declined by 688 to 74,689 employees.

Meanwhile, the company's last-twelve-month attrition rate improved to 11.8%, compared with 12.6% a year ago.

Management commentary

The management attributed the quarter's performance to healthy client additions, sustained demand across verticals and disciplined execution, while reiterating its focus on strengthening AI capabilities, improving operational efficiency and driving long-term growth.

"YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $1 billion dollars underscores the resilience of our business and the growing relevance of our offerings. Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY," said Mohit Joshi, CEO, Tech Mahindra.

Meanwhile, Rohit Anand, CFO, Tech Mahindra stated, "We delivered a strong Q1 performance with broadbased growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum. We remain committed to building a future-readyorganization through continued investments in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent—while maintaining a clear focus on growth and operational rigor."

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