Tech Mahindra Q1 FY27 Results: Profit Rises 8.2% QoQ to ₹1,465 Crore, EBIT Margin Expands to 14.4%

16 Jul 2026 , 08:17 PM

Tech Mahindra reported a strong operational performance in the first quarter of FY27, with net profit rising 8.2% sequentially, revenue growing in double digits, margins improving, and deal wins crossing $1 billion for the third consecutive quarter. The company’s shares gained 1.13% following the results announcement.

Tech Mahindra Ltd delivered a positive performance in Q1 FY27, supported by revenue growth, improved profitability, healthy deal wins, and better operational efficiency. The IT services major reported a rise in net profit, expansion in EBIT margins, and continued improvement in employee attrition levels.

According to the company’s exchange filing, consolidated net profit (PAT) increased to ₹1,465.1 crore in the June 2026 quarter from ₹1,353.8 crore in the previous quarter, registering an 8.2% quarter-on-quarter growth. However, the profit figure was below the Zee Business estimate of ₹1,596 crore.

Tech Mahindra Q1 FY27 Revenue Growth

Tech Mahindra reported strong revenue growth during the quarter.

Key financial highlights:

• Revenue from operations: ₹15,711.9 crore
• YoY growth: 17.7% from ₹13,351.2 crore
• QoQ growth: 4.2% from ₹15,076.1 crore
• Total income: ₹15,605.5 crore compared with ₹14,871.4 crore in Q4 FY26

In dollar terms, revenue stood at $1.66 billion, rising:

• 6.1% YoY
• 2.2% QoQ

On a constant currency basis, revenue increased:

• 6.6% YoY
• 2.6% QoQ

EBIT Rises 53%, Margins Improve

Profitability improved significantly during the quarter, supported by better execution and operational efficiency.

Tech Mahindra’s:

• EBIT increased 53.3% YoY to ₹2,264 crore
• EBIT increased 8.6% QoQ from ₹2,084 crore
• EBIT margin expanded to 14.4%

Margin improvement:

• Up 330 basis points YoY
• Up 60 basis points QoQ from 13.8%

The company’s profit before tax (PBT) increased 26.2% YoY to ₹2,041.9 crore.

Earnings per share also improved:

• Basic EPS: ₹16.53 versus ₹12.87 a year ago
• Diluted EPS: ₹16.50 versus ₹12.86 a year ago

IT Services and BPS Segments Show Strong Growth

IT Services Performance

Tech Mahindra’s IT services business continued to be the primary growth driver.

• Revenue: ₹13,245 crore
• YoY growth: 17.6%
• Segment profit: ₹2,903 crore
• Segment profit growth: 39.9% YoY

Business Process Services (BPS)

The BPS segment also delivered healthy growth.

• Revenue: ₹2,466.9 crore
• YoY growth: 18.2%
• Segment profit: ₹437.6 crore
• Profit growth: 30.4% YoY

Europe Leads Geographic Growth

Among major markets, Europe emerged as the fastest-growing region for Tech Mahindra.

Regional performance:

• Europe: Revenue growth of 12.1% YoY
• Americas: Revenue growth of 4.8% YoY
• Rest of World: Revenue growth of 2.5% YoY

Manufacturing and BFSI Drive Vertical Growth

The company’s performance was supported by growth across key industry segments.

Vertical-wise growth:

• Manufacturing: 17.2% YoY growth
• Banking, Financial Services and Insurance (BFSI): 8.1% growth
• Communications: 1.3% growth

Manufacturing remained the strongest-performing vertical during the quarter.

Deal Wins Cross $1 Billion for Third Consecutive Quarter

Tech Mahindra continued to strengthen its order pipeline with strong deal momentum.

Key deal highlights:

• New deal wins reached $1.08 billion
• Deal wins increased 33.3% YoY
• Company achieved more than $1 billion in quarterly deal wins for the third consecutive quarter

Customer growth also remained healthy:

• Clients contributing over $50 million annual revenue: Increased to 33 from 26 YoY
• Clients contributing over $10 million annual revenue: Increased to 115 from 108 YoY

Attrition Improves, Workforce Adjusts

Tech Mahindra continued to see improvement in employee retention.

Workforce highlights:

• Total employee headcount: 146,760
• Headcount declined by 863 employees sequentially
• IT workforce reduced by 688 employees to 74,689
• LTM attrition improved to 11.8% from 12.6% a year ago

Lower attrition supported operational stability and profitability improvement.

Cash Flow Remains Strong

The company maintained healthy cash generation during the quarter.

Key cash flow metrics:

• Free cash flow: $167 million
• Growth: 94% YoY
• Free cash flow equivalent to 108% of PAT
• Days Sales Outstanding (DSO) improved to 84 days from 95 days YoY

Improved collections strengthened the company’s cash position.

Tech Mahindra Acquires Stake in Alluri Technologies (Avant)

Tech Mahindra announced the acquisition of an 85% stake in Canada-based Alluri Technologies (Avant) for ₹187.5 crore.

The company will acquire the remaining 15% stake after three years, subject to achievement of performance milestones.

The acquisition is expected to enhance Tech Mahindra’s capabilities and strengthen its market presence.

Tech Mahindra Share Price Performance

Tech Mahindra shares reacted positively after the Q1 FY27 results announcement.

Stock performance:

• Previous Close: ₹1,498.70
• Opening Price: ₹1,510.00
• Day’s High: ₹1,538.30
• Closing Price: ₹1,515.60
• Gain: 1.13%

The stock movement reflected investor optimism over improved margins, strong deal wins, and better operational performance.

Outlook

Tech Mahindra’s Q1 FY27 performance highlights a broad-based improvement across revenue growth, margins, deal wins, and cash generation. The company’s continued success in securing large contracts, improving attrition levels, and expanding its presence across key markets provides a positive foundation for future growth.

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