Tech Mahindra, an IT services company, reported a major jump in its net profit for the July-September quarter, reaching ₹1,250 crore—153% higher than the ₹493.9 crore earned in the same period last year. This growth was driven by income from selling assets, along with strong performance in European markets and the banking, financial services, and insurance (BFSI) sector.
The company’s revenue also rose by 3.5% to ₹13,313.2 crore compared to the ₹12,863.9 crore in the year-ago quarter. Part of the profit boost came from a ₹450 crore gain on selling property, with the sale expected to be paid off over four years, including an 8.2% annual interest rate.
Tech Mahindra’s CEO, Mohit Joshi, highlighted that while the IT services industry has been slow, the company has been making progress, focusing on client relationships and improving operational efficiency through a plan called Project Fortius. This initiative, launched in April, aims to increase the company’s operating margins to 15% by 2027.
Despite the positive results, the company’s order bookings slightly decreased to $603 million from $640 million last year, and it continues to face challenges in its communications sector, which makes up a third of its revenue. However, Joshi remains confident about long-term growth and said that the company is on track for a sustainable transformation.
During the quarter, Tech Mahindra added over 6,600 new employees, bringing its total workforce to 1,54,273. The company also declared an interim dividend of ₹15 per share.
The firm’s stock price closed at ₹1,688 on Friday, down 0.68% from the previous day.
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