Tech Mahindra Q1 result: Profit Jumps 28% to ₹1,465 crore; revenue rises 18%
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IT services major Tech Mahindra Ltd on Thursday reported a 28.4% year-on-year (YoY) increase in consolidated net profit to ₹1,465 crore for the first quarter ended June 30, 2026, driven by broad-based business growth and improved operating margins. Revenue from operations rose 17.7% YoY to ₹15,712 crore during the April-June quarter.
In dollar terms, revenue stood at $1.66 billion, up 2.2% sequentially and 6.1% year-on-year in reported terms.
The company's operating performance also improved significantly during the quarter. Earnings before interest and tax (EBIT) rose 53.3% YoY to ₹2,264 crore, while the EBIT margin expanded by 330 basis points to 14.4%. On a sequential basis, EBIT increased 8.6%, with margins improving by 60 basis points.
Total expenses increased 13.4% to ₹13,559.3 crore, compared with ₹11,951.9 crore in the year-ago period. Employee benefit expenses rose 5% to ₹7,876.6 crore while subcontracting costs surged 36.6% to ₹1,790.9 crore. Other expenses increased 26.7% to ₹3,301.9 crore.
Tech Mahindra's total workforce stood at 146,760 at the end of the quarter, down by 863 employees from the previous quarter. IT attrition over the last twelve months (LTM) stood at 11.8%.
Commenting on the results, Mohit Joshi, CEO and Managing Director, Tech Mahindra, said the company's consistent deal momentum and client engagement reflected the resilience of its business.
"Year-on-year growth of 6.1%, coupled with three consecutive quarters of deal wins exceeding $1 billion, underscores the resilience of our business and the growing relevance of our offerings," Joshi said. He added that client relationships continued to deepen during the quarter, with the number of clients contributing more than $50 million in annual revenue increasing by seven, while all business verticals registered year-on-year growth.
Rohit Anand, Chief Financial Officer, Tech Mahindra, said the company delivered a strong start to FY27 through broad-based growth, margin expansion and disciplined working capital management. "We remain committed to building a future-ready organisation through continued investments in differentiated capabilities, domain-specific and sovereign AI, platforms and talent, while maintaining a clear focus on growth and operational rigour," Anand said.
Shares of Tech Mahindra ended 0.85% higher at ₹1,511.35 on the BSE on Thursday, ahead of the earnings announcement.