IT services firm Tech Mahindra’s profit after tax (PAT) grew 32.7 per cent year-on-year (Y-o-Y) to ₹1,586 crore in the July-September quarter of financial year 2027 (Q2FY27), driven by growth in its manufacturing and communications verticals.
Revenue rose 15.6 per cent Y-o-Y to ₹16,180 crore. Sequentially, the company’s profit rose 8.2 per cent, while revenue grew 3 per cent.
The revenue beat the Bloomberg analysts’ estimate of ₹16,027 crore. However, the profit missed estimates of ₹1,642 crore.
The second quarter also marked the company’s fourth consecutive quarter of new deal wins exceeding $1 billion in value, growing 25.4 per cent Y-o-Y.
“Deal wins exceeding $1+ billion in each of the last four quarters reflect the strength of our customer relationships and the trust we have built. With 7.2 per cent year-on-year constant currency growth, we continue to sustain business momentum,” Mohit Joshi, managing director (MD) and chief executive officer (CEO) of the company, said.
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These deal wins, Joshi said, have been enabled by the strong artificial intelligence (AI) capabilities that underpin the company’s solutions.
Tech Mahindra, which had announced its intent to achieve a 15 per cent earnings before interest and taxation (Ebit) margin in FY25, is only about 20 basis points away from achieving that target, Joshi said.
“When the journey started, we were shrinking at 5 per cent year-on-year. Today, we are growing at 7.2 per cent year-on-year. So far, consistently over the past 12 quarters, we have shown commitment to achieve that target,” he said.
Joshi also said that Tech Mahindra’s reliance on US H1-B visas is comparatively low, since it hires nearly 70 per cent US citizens, and only the other 30 per cent of the requirement is fulfilled by workers with valid visas, he said.
“We have always been very thorough and focused on compliance with visa and broader regulations across the world. Our dependence on H1-Bs is extremely low, making up just about one per cent of our overall workforce,” Joshi said.
The Pune-headquartered company's total headcount stood at 152,206 at the end of the July-September period, with 5,446 employees added during the quarter.
The company also announced it would issue bonus shares worth ₹4.9 billion, the first it has done since 2015. The Pune-based company also announced an interim dividend of ₹15 per share.