IT firm Tech Mahindra on October 14 reported 4.5% decline in net profit at Rs 1,195 crore for the quarter ended September 30, 2025.
However, the firm's revenue from operations rose 5.1% to Rs 13,995 crore in Q2FY26, aided by strength in its banking and manufacturing verticals despite US tariff-related uncertainty and mounting risks from a tightening US visa regime.
To be sure, the YoY plunge in net profit this quarter is due to a one-time exceptional gain reported in Q2FY25 on the account of sale of land in the corresponding period. Since there’s no similar one-time income this time, the reported profit looks lower, the company said.
On sequential basis, Tech Mahindra's net profit and revenue rose 4.7% and 4.8%, respectively.
The firm declared interim dividend of Rs 15 per share and record date has been fixed as October 21.
"The Interim Dividend shall be paid through permitted modes, on or before Wednesday, 12th November, 2025," said the company in an exchange filing.
The company reported EBIT of Rs 1,699 crore, up 33% YoY. Its new deal wins TCV (total contract value) during the quarter was $816 million.
On October 14, Tech Mahindra shares on NSE closed 1.2% higher at Rs 1,469 apiece.
Mohit Joshi, CEO and Managing Director, Tech Mahindra, said, “We delivered broad-based growth this quarter, reflecting the strength of our strategy and execution. We launched TechM Orion, our next-generation AI platform, and TechM Orion Marketplace to help enterprise accelerate autonomous transformation. Being recognized by industry analysts reinforces our leadership in advancing next-generation AI.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “This quarter marks the eighth consecutive period of margin expansion, driven by operational efficiency and disciplined execution. Our deal TCV is up 57% year-on-year on LTM basis, supported by strong deal conversions. The Board has approved a dividend of ₹15 per share reflecting our continued focus on shareholder value.”
As of September 30, the company's total headcount stood at 1,52,714, down 1,559 YoY.
On H-1B visa impact
Joshi said that only 1 percent of Tech Mahindra's workforce is on H-1B visas, while the company gets around 45 percent its revenue from the US market. Majority of Tech Mahindra's workforce in the US are locals or are Green card holders.
"Our degree of dependence on H-1Bs is limited. Obviously, any change to this program will have an impact on us, despite the fact that our talent exposure to H-1Bs is quite limited...We do have a network of delivery capabilities across the world, including in the Americas, in Brazil, in Mexico, in Canada.
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