Tech Mahindra’s shares are expected to attract attention today after the IT services company reported a 153.1% year-on-year increase in profit for the second quarter, reaching ₹1,250 crore. Its revenue also saw a 3.5% year-on-year growth, totaling ₹13,313 crore for the quarter.
When compared to the previous quarter, profit rose by 46.81%, while revenue grew by 2.36%.
In its quarterly announcement, Tech Mahindra declared an interim dividend of ₹15 per equity share, with November 1 set as the record date to determine which shareholders will receive the dividend.
The company’s profit margin for the quarter stood at 9.4%, an increase of 280 basis points compared to the previous quarter and 560 basis points from the same quarter last year. Tech Mahindra secured new deal wins totaling $603 million.
In constant currency terms, the company’s revenue rose by 0.7% quarter-on-quarter and 1.2% year-on-year.
However, Tech Mahindra’s IT attrition rate increased to 11% in Q2, up from 10% in the prior quarter. The total number of employees grew by 4.5% to 154,273. Revenue from the communications sector fell by 1.7% year-on-year, while the BFSI (Banking, Financial Services, and Insurance) segment grew by 4.5%. Revenue from the technology, media, and entertainment sector increased by 2.4%.
Rohit Anand, the Chief Financial Officer, stated, “This quarter, we see consistent performance in deal wins, revenue growth, cost optimization, and steady free cash flow generation as we work toward our FY27 targets. In line with our capital allocation policy, the board has declared an interim dividend of ₹15 per share.”
On Friday, Tech Mahindra’s shares closed at ₹1,688 on the BSE, down 0.68% from the previous close.
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