Tech Mahindra Q2 Results: Net Profit Rises 33% to ₹1,586 Crore; Board Recommends 1:1 Bonus Shares

16 Oct 2026 , 04:28 PM

Tech Mahindra reported a 33 percent increase in consolidated net profit to ₹1,586 crore for the quarter ended June 2024, compared to the same period last year. Its revenue for the quarter increased by 15.6 percent to ₹16,180 crore. The company has proposed a ₹15 per share interim dividend and a 1:1 bonus issue to shareholders.

Key Pointers

• Net profit rises 33%: Consolidated net profit increased to ₹1,586 crore, up 8.2% quarter-on-quarter.

• Revenue grows 15.6%: Revenue reached ₹16,180 crore, registering 3% sequential growth.

• EBIT increases 40.5%: Earnings before interest and tax rose to ₹2,387 crore, up 5.4% quarter-on-quarter.

• Operating margin improves: EBIT margin expanded to 14.8% from 14.4% in the June quarter, an improvement of 40 basis points.

• Dollar revenue rises: Revenue in dollar terms increased 2% sequentially to $1.693 billion.

• New deal bookings: Total contract value (TCV) of new deals stood at $1.023 billion during the quarter.

• Interim dividend announced: The company declared ₹15 per equity share, equivalent to 300% of the ₹5 face value.

• Dividend record date: October 23, 2026, with payment scheduled by November 13, 2026.

• 1:1 bonus issue recommended: Eligible shareholders will receive one bonus share for every existing share held, subject to shareholder approval.

• Authorised share capital to increase: The board proposed raising it from ₹924.3 crore to ₹1,000 crore, subject to the required approvals.

1:1 Bonus Share: What does it mean?

According to the proposed 1:1 bonus issue, shareholders will receive an extra equity share for every share held on the record date, which will be announced separately by the company.

In other words, if one owns 100 shares of Tech Mahindra, the number of shares will increase to 200 (an additional 100 shares received as bonus). However, the value of each share would be half of the value of the 100 shares (all things being equal), so it would not actually increase the value of the investment for the shareholders.

The company will authorize the issuance of shares as a bonus by capitalizing on its eligible reserves such as the securities premium account, general reserves, or retained earnings.

Tech Mahindra Dividend Details

Particulars	Details
Interim dividend	₹15 per share
Face value	₹5 per share
Dividend payout	300% of face value
Record date	October 23, 2026
Payment deadline	November 13, 2026
Bonus ratio	1:1, subject to approval
Bonus record date	To be announced

What Do the Results Indicate?

Tech Mahindra’s Q2 performance reflects growth in revenue and profitability, and also an improvement in its operating margins. The increase in EBIT indicates that operating profit grew faster than revenue on a year-on-year basis.

The proposed bonus issue and interim dividend are independent shareholder actions: the dividend provides a cash payout, while bonus shares increase the number of shares held. Both the bonus issue and the proposed increase in authorised share capital are subject to the applicable approvals.

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