Tech Mahindra Q1 FY27 results: Net profit rises 8% QoQ; revenue in constant currency grows to $1,660 million

The company’s revenue from operations surged 4.2% on a quarter-on-quarter (QoQ) basis to ₹15,712 crore during the quarter under review, compared to ₹15,076 crore in the March quarter of the 2025-26 fiscal year (Q4 FY26).

On a yearly basis, the large-cap IT services company’s revenue jumped 17.6% from ₹13,351 crore in the first quarter of FY26.

At an operational level, its EBIT (earnings before interest and taxes) stood at ₹2,264 crore, registering a growth of 9.2% QoQ from ₹2,073 crore. The EBIT margin also increased 70 basis points (bps) to 14.4% in Q1 FY27 in contrast to 13.7% recorded in the previous quarter of FY26.

In constant currency terms, the revenue jumped up 2.6% QoQ and 6.6% annually at $1,660 million.

Tech Mahindra reported free cash flow of $167 million for the period. The company also recorded new deal wins with a total contract value (TCV) of $1,078 million, marking a 33.3% year-on-year increase.

“YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $ 1 billion dollars underscores the resilience of our business and the growing relevance of our offerings. Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY,” said Mohit Joshi, CEO and Managing Director, Tech Mahindra.

For Q1 FY27, the IT firm reported a total headcount of 146,760, reflecting a decline of 863 employees on a sequential basis. The company’s last twelve months (LTM) IT attrition stood at 11.8%. Its cash and cash equivalents at the end of the quarter stood at ₹9,695 crore.

The company’s basic earnings per share (EPS) expanded to ₹16.53 apiece in the first quarter, compared to ₹12.87 per share in the same period a year earlier.

Tech Mahindra’s geographic revenue mix was led by the Americas, which contributed 48.6% of total revenue, reflecting a marginal decline of 0.1% QoQ and growth of 4.8% YoY.

Europe accounted for 27.5% of the mix, recording an increase of 8.1% QoQ and 12.1% YoY, while the Rest of the World (ROW) contributed 23.9%, with a QoQ rise of 0.6% and an annual growth of 2.5%.

On Thursday, shares of Tech Mahindra settled at ₹1,510.30 apiece on the National Stock Exchange, rising 0.77%. The earnings, however, came after the market hours.