Tech Mahindra has kicked off FY26 on a strong note. The company’s Q1 results show a big 34% rise in net profit, reaching ₹1,141 crore. This is up from ₹852 crore in the same quarter last year.
What helped? Low spending and steady revenue growth.
Revenue Up, But America Dips
The company’s revenue for April to June stood at ₹13,351 crore. That’s a 3% jump from last year. However, revenue from the Americas, which is nearly half of Tech Mahindra’s business, dropped by 5.9%.
Still, the company managed to grow. Why? Because it kept expenses flat. Total spending fell slightly to ₹11,952 crore. That gave the company more profit.
Deal Wins Drive Momentum
CEO Mohit Joshi says the company’s performance is getting stronger. In his words, “Deal wins have increased by 44% on a last twelve months basis.”
Net new bookings also grew. They hit $809 million this quarter. That’s better than both last quarter ($798 million) and the same time last year ($534 million). This shows strong demand across different markets and sectors.
Also Read RIL Q1 Earnings Preview: Net Profit Seen Up 40% on Strong O2C and Jio Growth
Margins Expand for the 7th Time in a Row
Chief Financial Officer Rohit Anand said, “We have delivered seven straight quarters of margin growth.”
EBIT margin (earnings before interest and taxes) rose to 11.1%. That’s 260 basis points more than last year. PAT margin (profit after tax) climbed to 8.5%, also up 190 basis points.
Tech Mahindra’s internal program, Project Fortius, is helping with cost control and better results.
Stock Rises, But Headcount Falls
After the Q1 results were out, Tech Mahindra shares went up by nearly 2% on NSE, closing at ₹1,608.5 each.
But there’s a cut in staff numbers. The IT headcount is now 79,987. That’s down by 622 people from last quarter and 430 fewer than last year.
Also, attrition (employees leaving) rose to 12.6%, up from 11.8% last quarter.
Cash Flow and Big Clients
Tech Mahindra saw free cash flow of $86 million this quarter. That’s lower than the $150 million seen in Q4 FY25.
Still, the company added two new $50 million-plus clients, bringing the total to 26.
Tech Mahindra Q1 results show the company is back on track. Even with market headwinds, strong deal wins and cost control gave a clear boost. With rising profit and growing clients, Tech Mahindra is proving that smart execution still pays.
Also Read Paytm Crosses ₹1,000 After 5 Straight Gains, Jumps 9% in July Ahead of Q1
