Tech Mah Q1 seen up 27%, $ revenue flat; outlook key: Poll

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26 Aug, 2025 12:21

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Not much is expected in Tech Mahindra's April-June quarter earnings as the company had already issued profit warning about its performance. According to a CNBC-TV18 poll, the software company is likely to see a growth of 27 percent in Q1 net profit at Rs 600 crore from Rs 472 crore in quarter-ago period. Tech Mahindra will announce June quarter results on July 27.

Its Q1 dollar revenue is seen at USD 983 million versus versus USD 984 million quarter-on-quarter. During the quarter, rupee revenue is seen growing 1.7 percent at Rs 6225 crore against Rs 6116.8 crore on a sequential basis.

During the quarter, EBIT is likely to be at Rs 690 crore against Rs 756.37 crore (quarter-on-quarter) while EBIT margin may come in at 11.08 percent versus 12.36 percent.

Earlier in June, the company had said Q1FY16 has some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA margin a sequential basis. "Seasonally weak mobility business will be a drag on Q1 revenues and EBITDA. H1 B visa costs will be another drag on margins," it explained. It also said FY16 organic communication growth could remain subdued due to delayed decision making.

Analysts polled by CNBC-TV18 say seasonal decline in Comviva (USD17-18 million impact), some decline in BT revenue and the absence of any large deal ramp-ups may hurt top line. However, incremental USD 11-12 million revenue from Lightbridge (LCC) may provide some support, they add. It is expected that vendor consolidation in telecom business may be binary and impact second half of 2015 while deal wins stay scarce.

Here are some more expectations from Q1:Focussing on improving EBITDA margins is top priority for FY16 #Target to improve utilisation and recover wage hikes #Successful integration of acquisitions like LCC and sofgen is a priority #Automation is a key initiative to achieve margin objectives

Management commentary to watch #Uptick in the telecom business that is expected in H2 and, specifically, if the company expects improved large deal closures in telecom during the latter half of the year.#The outlook for margin improvement in H2 beyond seasonal factors like a higher contribution from LCC and Comviva assets.