Tech Mahindra reported a robust set of earnings for Q1 FY26, with the net profit jumping 34% year-on-year as expenses remained flat while revenue rose. The IT major reported a net profit of Rs 1,141 crore for the April-June quarter, rising from Rs 852 crore in the same period a year ago.
Consolidated revenue for the fiscal first quarter grew by 3% on-year to Rs 13,351 crore. Tech Mahindra's total expenditure for the quarter remained in check, marginally falling to Rs 11,952 crore, which boosted the bottomline.
Revenue from the Americas market, which accounts for nearly half of its overall topline, fell 5.9% compared to last year.
Tech Mahindra's net new bookings rose to $809 million in the quarter from $798 million in the previous quarter and $534 million in the year-ago period.
Mohit Joshi, CEO and Managing Director, Tech Mahindra, said, “Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies.”
Speaking at the company's Q1 earnings conference, Joshi said, "As we step into the second year of our transformation journey, Q1 reflects progress aligned with our stated plans. While the environment remains dynamic, our continued execution is building confidence that we are on the right path...There was spend reduction in automotive sector that impacted our YoY revenue performance."
This marks the seventh consecutive quarter of margin expansion for Tech Mahindra, he added.
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, "We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements.”
On July 16, Tech Mahindra shares on NSE closed nearly 2% higher at Rs 1,608.5 apiece.
The IT headcount of the company stands at 79,987, down by 622 QoQ and down by 430 YoY. The company's attrition is at 12.6% versus 11.8% a quarter ago.
The EBIT margin of the company rose 260 bps YoY to 11.1% while the PAT margin rose 190 bps YoY to 8.5%.
The company's number of $50 million-plus clients stands at 26, up by 2 on an annual basis. The company's free cash flow in Q1FY26 was $86 million as against $150 million a quarter ago.
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