Tech Mahindra Q2 Results: Cons PAT falls 4.4% YoY to Rs 1,194 crore, revenue rises 5%

Synopsis

Tech Mahindra on Tuesday reported a 4.4% YoY fall in its Q2 net profit at Rs 1,194 crore versus Rs 1,250 crore in the year ago period. The profit after tax (PAT) is attributable to the owners of the company.

Tech Mahindra on Tuesday reported a 4.4% YoY fall in its Q2 net profit at Rs 1,194 crore versus Rs 1,250 crore in the year ago period. The profit after tax (PAT) is attributable to the owners of the company.

The revenue from operations stood at Rs 13,995 crore, up 5.1% over Rs 13,313 crore posted in the corresponding quarter of the last financial year.

The company declared an interim dividend of Rs 15 per equity shares for the financial year 2025-26 and has fixed Tuesday, October 21 as the record date for determining the members entitled to receive the interim dividend.

Tech Mahindra's consolidated PAT grew 4.7% on a sequential basis versus Rs 1,141 crore reported in Q1FY26 while the topline increased 4.8% QoQ compared to Rs 13,351 crore in the April-June quarter.

The company's Earnings Before Interest and Taxes (EBIT) stood at Rs 1,699 crore, up 15% QoQ and up 32.7% YoY.

Earnings highlights in USD

Tech Mahindra's USD revenue stood at $1,586 million, up 1.4% QoQ and down 0.2% YoY in reported terms. Meanwhile in constant currency, it was up 1.6% QoQ while going down by 0.3% YoY.

The EBIT was reported at $192 million, up 11.5% QoQ and up 25.6% YoY while EBIT margin was 12.1%, up 108 bps QoQ, up 254 bps YoY.

The PAT stood at $135 million, up 1.5% QoQ while operational PAT increased up 28.2% YoY.

The PAT margin was 8.5%, flat QoQ.

Company's Free cash flow (FCF) stood at $237 million.

New deal wins

The total contract value (TCV) stood at $816 million.

Management speak

Commenting on company's Q2 performance, CEO and Managing Director Mohit Joshi said that the company delivered broad-based growth this quarter, reflecting the strength of its 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,” Joshi said.

Meanwhile, Chief Financial Officer Rohit Anand highlighted Q2FY26 as 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," he added.

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