Tech Mahindra misses estimates, flags worries over global situation

Bengaluru: IT services provider Tech Mahindra posted a weak set of numbers, joining its peers, as macroeconomic uncertainty continues to cloud spends by clients, especially in its telecom vertical, which generates a third of its total revenue. Its consolidated revenue grew by 4% on a year-on-year basis to Rs 13,384 crore in the January-March quarter. However, analysts were penciling in Rs 134,52 crore, as per Reuters. 

Meanwhile, its profit for the fourth quarter of fiscal year 2025 (Q4FY25) grew 76.5% to Rs 1,167 crore on the back of lower subcontracting costs and a deferred tax gain. Its order bookings also rose to $798 million from $500 million from the same period last year.  “I do feel that comparatively, we are in a much stronger position than maybe we were a year ago,” said Chief Executive Officer Mohit Joshi. 

Persistent high inflation has clamped down on spending by clients, forcing them to tighten their budgets - a major reason behind its revenue from the communication segment falling 2% on an annual basis. While growth in this vertical remains a concern, the company said that it is seeing signs of stability returning in Europe and Asia Pacific. 

Joshi also cautioned about global economic concerns which continue to pose challenges. Trump’s tariff tantrums stand as a major obstacle in deal decisions and has also cut hopes of a possible rebound in discretionary spending, a concern also flagged by Tech Mahindra’s IT peers.

The company announced a final dividend of Rs 30 per share on Thursday.