Tech Mahindra Q1 PAT drops 2% QoQ to Rs 1,141 cr

On a Year on year (YoY) basis, the company's net profit jumped 33.95% while revenue from operations increased 2.66% in Q1 FY26.

Profit before tax (PBT) stood at Rs 1,618.1 crore, up 10.51% QoQ and 35.35% YoY.

EBITDA stood at Rs 1,935.2 crore in the quarter ended 30th June 2025, up 3.63% QoQ and up 23.69% YoY.

In terms of dollars (USD), revenue stood at $1,564 million in Q1 FY26, registering growth of 1% QoQ and up 0.4% YoY. In constant currency terms, revenue declined by 1.4% QoQ and down 1% YoY. Profit after tax was at $133 million, down 2% QoQ and up 30.2% YoY. Free cash flow was at $86 million in the Q1 June 2025.

During the quarter, EBIT was at $172 million, up 5.4% QoQ and up 30.2% YoY. EBIT margin came in at 11.1% in Q1 FY26, up 50 bps QoQ and 260 bps YoY.

The IT firm secured net new deals with a total contract value (TCV) of $809 million in the Q1 June 2025.

The total headcount stood at 148,517 in Q1 FY26, The last twelve months (LTM) IT attrition rate stood at 12.6% in Q1 FY26 as against 11.8% in Q4 FY25. Cash and cash equivalents were at Rs 8,072 crore as of 30 June 2025.

Mohit Joshi, CEO and managing director, Tech Mahindra, said, 'Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies.'

Rohit Anand, chief financial officer, Tech Mahindra, said, 'We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements.'

Tech Mahindra offers technology consulting and digital solutions to global enterprises across industries, driving transformation at scale and speed. It provides a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, AI & analytics, and cloud & infrastructure services.

The counter advanced 1.94% to end at Rs 1,609 on the BSE.

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