Tech Mahindra’s Q2 Results: An Analysis

Tech Mahindra recently announced its financial performance for the second quarter of its fiscal year 2026. The company saw a healthy increase in revenue and profits, but some key areas require closer examination. This report breaks down the key figures and what they mean for the company’s future.

Key Points

• Revenue increased by 4.82%, reaching Rs 13,994.90 crore.
• Net profit jumped 4.73% to Rs 1,194.50 crore.
• Profit before tax rose 2.55% to Rs 1,659.30 crore.
• EBITDA grew 12.04% QoQ and 23.89% YoY to Rs 2,168 crore.
• EBIT margin improved to 12.1%, showing operational gains.
• The board approved a dividend of Rs 15 per share.

Revenue Growth: Tech Mahindra reported a solid increase in revenue, reaching Rs 13,994.90 crore – a rise of 4.82% compared to the previous quarter. This growth signals continued demand for Tech Mahindra’s services.

Profitability: Despite the revenue growth, net profit dropped 4.4% compared to the same period last year. However, profit before tax (PBT) increased by 2.55% to Rs 1,659.30 crore. This suggests cost management is a priority.

Operational Performance: The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) climbed significantly, rising by 12.04% on a quarterly basis and 23.89% year-over-year to Rs 2,168 crore. This is a positive sign of efficiency.

Margins and Efficiency: Tech Mahindra’s EBIT (Earnings Before Interest and Taxes) margin increased to 12.1%, up 108 bps quarter-over-quarter and 254 bps year-over-year. This demonstrates improved operational efficiency.

Headcount and Attrition: The company reduced its headcount by 1,459 individuals compared to the previous quarter, and 2,090 compared to the same period last year, bringing the total to 78,528. IT LTM attrition was recorded at 12.8%.

Financial Decisions: The Board of Directors approved a dividend payment of Rs 15 per share for the fiscal year 2026, reflecting the company’s commitment to shareholder value. The record date for the dividend has been set for October 21, 2025.

Strategic Initiatives: Tech Mahindra continues to invest in innovation, launching the TechM Orion AI platform and marketplace to support enterprise digital transformation. Recognition by industry analysts validates their leadership in AI.

Stock Performance: The company’s stock price decreased by 1.12% to Rs 1451.20 on the BSE.

“Tech Mahindra delivers broad-based growth, highlighting our strategic focus and execution capabilities.” – Mohit Joshi, CEO and Managing Director.

Tech Mahindra provides a wide range of technology services, including consulting, digital solutions, and AI, to help businesses improve and grow.