Tech Mahindra Q2 preview: Numbers likely steady, weak rupee to boost revenue

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26 Aug, 2025 12:21

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Tech Mahindra, which will announce its September quarter performance on October 30, is expected to report a steady set of numbers with revenues rising on the back of a weaker rupee and absence of visa costs. The profit could range between Rs 940 crore and Rs 990 crore.

Here’s a gist of what brokerages are pricing in for the September quarter.

Brokerage: Axis Capital | PAT: Rs 950 crore

The brokerage house believes that revenue growth could be driven by strong momentum in telecom despite impact of project closure in enterprise segment.

It sees margin headwinds in wage hike, while cost rationalisation, rupee depreciation and improving profitability of subsidiary, among others, as tailwinds for better rupee.

Brokerage: Emkay | PAT: Rs 989.7 crore

Emkay said it expects 1.5 percent constant currency growth driven by positive deal traction in the communications business. However, 150 bps of cross currency headwind will lead to flat revenues in dollar terms in Q2FY19.

Rupee depreciation along with absence of impact of wage/visa/Comviva would drive 110 bps operating margins gains in the quarter.

Reported PAT likely to grow by 10 percent QoQ due to strong operating gains.

Key things to watch out for (1) outlook on growth in the Communications vertical specifically on 5G, (2) Further potential in terms of OPM gains and levers to drive them in light of lowered growth rate

Brokerage: ICICI Securities | PAT: Rs 947.3

ICICI Securities expects dollar revenues to increase 0.3 percent QoQ to $1,227.9 million on account of recent deal wins in communications segment partly countered by muted performance in enterprise segment.

Rupee revenues may grow 3.9 percent QoQ to Rs 8,603 crore. EBITDA margins may expand 90 bps QoQ to 17.3 percent owing to currency benefit partly countered by a partial wage hike.

Brokerage: Motilal Oswal | PAT: Rs 930 crore

The brokerage expect PAT to decline by 24 percent QoQ, led by operational weakness and lower other income. Revenue is expected to decline by 1.2 percent sequentially on a constant currency basis (-2.5 percent QoQ in USD terms).

Key issues to watch for

-Traction in enterprise and deal wins

-Expectations around a 5G-led pick-up in Telecom

Brokerage: Prabhudas Lilladher

Leakage in enterprise vertical owing to softness in HCI business would be negated by strong recovery in communication vertical which is likely to start showing recovery from hereon which is trigger, the brokerage house said.

We expect Tech Mahindra to deliver 0.7 percent constant currency revenue growth and Cross currency would be a headwind of 100bps for the quarter. Hence, dollar revenues would decline by 0.3 percent QoQ owing to cross currency headwinds.