Tech Mahindra Q4 Earnings: Profit jumps 21% Q-o-Q, declares final dividend of ₹36 per share

22 Apr 2026 , 02:21 PM

Tech Mahindra delivered a mixed set of quarterly results, where profitability improvements and margin expansion were offset by subdued revenue growth in constant currency terms. While the headline numbers point to resilience in execution, underlying demand trends continue to raise concerns about near-term growth visibility.

Revenue Performance: Growth, but Muted in Real Terms

The company reported revenue of ₹15,076.1 crore, reflecting a 12.64% year-on-year increase and a 4.74% quarter-on-quarter rise. On the surface, this indicates steady expansion.

However, constant currency (CC) dollar revenue growth came in at just 0.6% YoY, highlighting a key concern: global demand for IT services remains soft, and currency benefits are masking underlying stagnation

Profitability: Strong Beat on Margins and Net Profit

Profitability was a clear bright spot in the quarter.

• Net profit: ₹1,353.8 crore
  • Up ~16% YoY
  • Strong ~20%+ QoQ growth
• EBITDA: ₹2,084 crore, up 10.2% QoQ
• EBIT margin: 13.8% vs 13.3% expected

The margin expansion suggests better cost control, operational efficiency, and favorable project mix. This is a key positive for the quarter and indicates disciplined execution even in a low-growth environment.

Segment Performance: Selective Strength Amid Broad Weakness

The business mix shows a clear divergence across geographies and verticals:

Geography

• Americas: -0.8% QoQ (continued weakness)
• Europe: +2.7% QoQ (key growth driver)

Verticals

• BFSI: +8% (strong momentum)
• Manufacturing: -0.1% (flat/weak)
• Communications: +1.8%
• Healthcare & Lifesciences: -0.8%

The growth is increasingly concentrated in Europe and BFSI, while the Americas—traditionally a major revenue contributor—remains under pressure.

Dividend Announcement

The board proposed a final dividend of ₹36 per share (face value ₹5), subject to approval at the AGM. The record date has been set for July 3, 2026. This signals continued confidence in cash generation despite growth challenges.

Market Reaction: Growth Concerns Weigh on Sentiment

Despite earnings beats on profit and margins, the stock declined by around 2.26%, trading near ₹1,466.90. ( as of 02:16PM on NSE)

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