Tech Mahindra Q4 results: Profit surges 76.5% on tax boost despite tepid 4% revenue growth

IT services firm Tech Mahindra posted a marginal 4% increase in its fourth-quarter revenue to ₹13,384 crore from ₹12,871.3 crore in the corresponding quarter last year, as decline in communications segment weighed on revenue. Its Profit After Tax (PAT) for the quarter ended March 31 jumped 76.5% to ₹1,167 crore, albeit largely because of a deferred tax benefit to the tune of ₹176.9 crore. Its board also approved a final dividend of ₹30/share.

For the full-year 2025, the company posted a revenue of ₹52,988.3 crore, a 1.9% increase from its full-year revenue of 51,995.5 crore last year. Its PAT for the year stood at 4,253 crore from 2,396.8 crore last year.

Mohit Joshi, CEO and Managing Director, Tech Mahindra, said that deal wins at $2.7 billion (approximately ₹22,545 crore) reflect a 42% increase over last year. “This is a clear validation of the depth of our client partnerships,” he added.

The company’s cash and cash equivalents at the end of the quarter was ₹7,656 crore. It registered net new deal wins of $798 million (about ₹6,663.3 crore) in the fourth quarter, compared to $500 million (about ₹4,175 crore) a year earlier. The company’s total expenses in the reporting quarter fell 1.64% to ₹12,091.3 crore from the corresponding period last year.

Segment-wise, revenue from its technology, communications, and manufacturing segments decreased by 2.2%, 5.5%, and 4.1% respectively, whereas its other segments—primarily consisting of banking, retail, and healthcare—registered a growth over the corresponding period last year. North America—which makes up for half of its revenue geographically—saw a decline of 4.7% in the quarter, whereas revenue in Europe and the rest of the world grew.

Tech Mahindra shares closed 0.4% higher at ₹1,446.60 on the NSE