Tech Mahindra reported a 28% rise in quarterly profit to Rs 1,465 crore, driven by strong revenue growth and consistent deal wins. The IT firm recorded $1.078 billion in new contracts, marking its third consecutive quarter of billion-dollar deal wins. Investors will focus on how the company manages operational costs and employee headcount as it continues to invest in AI and new technology capabilities.
Tech Mahindra has reported a strong start to the new fiscal year, with net profit for the June quarter (Q1 FY27) reaching Rs 1,465 crore. This is a 28% increase compared to the Rs 1,140.6 crore profit recorded in the same period last year. Revenue from operations also rose significantly, growing 18% to Rs 15,712 crore, up from Rs 13,351.2 crore in the previous year's first quarter.
Strong Deal Momentum and Segment Performance
The company’s growth was supported by a 33% year-on-year increase in total contract value (TCV) of new deals, which touched $1.078 billion for the quarter. This milestone marks the third straight quarter in which Tech Mahindra has secured more than $1 billion in new business. Both primary business segments performed well, with the IT services division revenue growing by 18% to Rs 13,245 crore, and the Business Process Services (BPS) segment also seeing an 18% rise to Rs 2,466.9 crore.
Operational Efficiency and Headcount Trends
Beyond revenue and profit figures, the company’s operating performance showed improvement, with Earnings Before Interest and Taxes (EBIT) rising by more than 53% year-on-year. While the company is pushing toward high-value areas like AI and specialized technology services, it reported a marginal reduction in its workforce. The total headcount stood at 1.47 lakh at the end of the June quarter, reflecting a net reduction of 863 employees. Meanwhile, the attrition rate—the measure of employees leaving the firm—remained stable at 11.8% on a last-twelve-months basis.
Looking Ahead
Tech Mahindra’s management, led by CEO Mohit Joshi, has pointed to deeper client engagement as a key driver of growth, noting an increase in the number of clients contributing more than $50 million in annual revenue. With cash and cash equivalents of Rs 9,695 crore, the company maintains a solid balance sheet position. Moving forward, investors will be closely monitoring whether the company can sustain this profitability momentum while managing the costs associated with its ongoing investments in AI and workforce reskilling. Additionally, the ability to convert these billion-dollar deal wins into consistent revenue growth and stable margins will be a primary factor for shareholders to track in the coming quarters.