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Tech Mahindra Q1 Results: IT major Tech Mahindra on Wednesday (July 16) said its Q1FY26 consolidated profit jumped 34 per cent year-on-year (YoY) to ₹1,140.6 crore, compared to ₹851.5 crore in the same quarter last year.

Revenue from operations for the quarter under review rose 2.7 per cent YoY to ₹13,351.2 crore from ₹13,005.5 crore in the same quarter of the previous financial year.

EBIT jumped 34 per cent YoY to ₹1,477 crore.

The company's management highlighted the seven consecutive quarters of margin expansion despite global uncertainty.

"We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organisation. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements,” said Rohit Anand, Chief Financial Officer, Tech Mahindra.

In dollar terms, the company's revenue increased 0.4 per cent YoY to $1,564 million, while the profit after tax (PAT) at $133 million rose 30.2 per cent YoY. PAT margin improved 190 bps YoY to 8.5 per cent.

EBIT jumped 30.2 per cent YoY to $172 million, and EBIT margin climbed 260 bps YoY to 11.1 per cent.

Tech Mahindra's total contract value (TCV) of new deal wins stood at $809 million against $798 million QoQ and $534 million YoY. 

“Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44 per cent on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies,” said Mohit Joshi, CEO and Managing Director, Tech Mahindra.

According to Tech Mahindra's exchange filing, its total headcount increased by 897 YoY to 1,48,517. On the other hand, IT attrition for the last twelve months stood at 12.6 per cent against 11.8 per cent last quarter and 10.1 per cent YoY. IT headcount decreased by 622 QoQ and 430 YoY to 79,987.

Among the key geographies, Europe saw a healthy growth of 11.7 per cent YoY, while "Rest of the World (RoW)" grew 2.9 per cent. However, Americas saw a de-growth of 5.9 per cent YoY.

From the verticals, BFSI saw a healthy 4.7 per cent YoY growth, followed by "Retail, Logistics and Transport" (up 3.8 per cent), and "Communications" (up 2.5 per cent).

However, "Manufacturing" declined 4 per cent, while "Technology, Media and Entertainment" saw a de-growth of 3.3 per cent.

The company reported having 26 clients with revenues exceeding, or equal to $50 million by the end of Q1FY26, up from 24 a year ago and 25 in the previous quarter.

However, the number of clients with revenues exceeding, or equal to $1 million decreased to 529 from 540 QoQ and 545 YoY.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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