Tech Mahindra Q2 results: Net profit rises 33% YoY; company announces 1:1 bonus issue after 11 years
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Tech Mahindra on Thursday reported a 32.7% year-on-year (YoY) increase in consolidated net profit to ₹1,585.6 crore for the September quarter of FY27, compared with ₹1,194.5 crore in the year-ago period. On a quarter-on-quarter (QoQ) basis, net profit rose 8.2% from ₹1,465.1 crore in the June quarter.
The company’s revenue for the September quarter stood at ₹15,711.9 crore, up 12.6% YoY from ₹13,994.9 crore in the year-ago period. On a sequential basis, revenue increased 2.6% QoQ from ₹15,319.1 crore in the June quarter of FY27.
The company’s board also recommended a 1:1 bonus share issue, its first in more than 11 years since 2015. Under the proposal, shareholders will receive one fully paid-up equity share for every existing share held. The record date for determining eligibility will be announced separately.
Declares interim dividend of ₹15 per equity share
Tech Mahindra also declared a special interim dividend of ₹15 per equity share of face value ₹5 for FY27, representing a payout of 300%. The record date for the dividend is October 23, 2026.
Mohit Joshi, CEO and Managing Director of Tech Mahindra, said, “Deal wins exceeding $1+ billion in each of the last four quarters reflect the strength of our customer relationships and the trust we have built. With 7.2% year-on-year constant currency growth, we continue to sustain business momentum. As we celebrate our 40th anniversary this quarter, we look ahead with confidence, building on our legacy of innovation, entrepreneurship, and long-term value creation for our stakeholders.”
Rohit Anand, Chief Financial Officer of Tech Mahindra, said, “We delivered another strong quarter of growth, with margins expanding for the twelfth consecutive quarter, reflecting disciplined execution. We continue to invest in AI to improve productivity, drive innovation and build capabilities for future growth. The Board has recommended an interim dividend of ₹15 per share reaffirming our commitment to shareholders.”
During the quarter under review, total headcount stood at 152,206, while trailing 12-month IT attrition was 11.7%. Free cash flow stood at $135 million, days sales outstanding were 88 days, and cash and cash equivalents totalled ₹7,330 crore at the end of the quarter.
Ahead of the results, Tech Mahindra shares ended 4.61% higher at ₹1,648.70 on the BSE, giving the company a market capitalisation of ₹1.61 lakh crore.