Tech Mahindra Q2 net profit declines 4.4% to Rs 1,194 crore

The company's net profit in the year-ago period stood at Rs 1,250 crore. Its revenue from operations stood at Rs 13,995 crore, a 5.1% increase compared to Rs 13,313 crore in the same quarter last year.

Bengaluru: Tech Mahindra on Tuesday posted a 4.4 per cent decline in its consolidated net profit at Rs 1,194.5 crore for the quarter ended September 2025. The IT firm missed the Street's estimates of Rs 1,300 crore.

The company's net profit in the year-ago period stood at Rs 1,250 crore. Its revenue from operations stood at Rs 13,995 crore, a 5.1 per cent increase compared to Rs 13,313 crore in the same quarter last year.

Tech Mahindra's EBIT stood at Rs 1,699 crore, up 32.7 per cent y-o-y, and new deal wins in the second quarter of this fiscal were at $816 million.

Mohit Joshi, CEO and Managing Director, Tech Mahindra, said that they delivered broad-based growth this quarter, reflecting the strength of strategy and execution.

"We launched TechM Orion, our next-generation AI platform, and TechM Orion Marketplace to help enterprises accelerate autonomous transformation. Being recognised by industry analysts reinforces our leadership in advancing next-generation AI," he said.

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 per cent year-on-year on an LTM basis, supported by strong deal conversions. The Board has approved a dividend of Rs 15 per share reflecting our continued focus on shareholder value.”

The IT firm's total headcount in the September quarter was at 1,52,714, down 1,559 y-o-y, and IT attrition stood at 12.8 per cent.

The company's American revenue fell 2.7 per cent y-o-y in the second quarter. While revenue from Europe grew 5.5 per cent, the Rest of World revenue declined 0.5 per cent y-o-y. Tech Mahindra's Communications vertical declined 2.2 per cent y-o-y and BFSI vertical grew 6.2 per cent during the quarter.