Tech Mahindra Q1 result: Consolidated net profit soars 34% YoY to ₹1,141 crore; revenue rises 2.7%

Tech Mahindra on Wednesday, July 16, reported a 34% year-on-year (YoY) surge in its consolidated net profit, which stood at ₹1,140.6 crore in the first quarter of FY26. In the corresponding period last year, it was at ₹851.5 crore.

The Pune-headquartered firm's revenue from operations stood at ₹13,351 crore in the quarter under review, jumping 2.7% YoY from ₹13,005 crore in the June quarter of FY25. In Q1FY26, Tech Mahindra earned a revenue of ₹11,263.7 crore from its IT segment, up 3.55% YoY from ₹10,878 crore in the same period last year. However, its Business Process Services (BPS) revenue fell 1.88% YoY to ₹2,087.5 crore, as against ₹2,127.5 crore.

During the quarter, the American market contributed 49.2% to its performance, a 5.9% YoY contraction. It was followed by Europe, which formed 26% of its performance mix in Q1FY26, increasing 11.7% YoY. Furthermore, the rest of the world contributed 24.8%, jumping 2.9% YoY.

At an operational level, its EBIT (earnings before interest and tax) improved by 34% YoY to ₹1,477 crores in Q1FY26.

The IT firm’s dollar revenue for the reporting quarter stood at $1,564 million, rising 1% QoQ. Meanwhile, its revenue in constant currency (CC) terms dipped 1.4% sequentially and 1% YoY.

Commenting on the Q1 results, 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.”

Tech Mahindra said that AI Delivered Right has gained strong customer traction since its launch last quarter, driving multiple deal wins and recognition across its core pillars. “Advanced AI consulting practice and partner ecosystem are accelerating agentic AI adoption—enabling clients to validate ROI and prioritise use cases efficiently,” the company said in a statement.

The tech company's total headcount increased by 897 YoY to 1.48 lakh during the quarter.

Tech Mahindra’s total contract value (TCV) for the quarter was $809 million, compared to $534 million in Q1FY25.

“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,” said Rohit Anand, the company's Chief Financial Officer.

Shares of Tech Mahindra closed 1.87% higher ay ₹1,608.5 apiece on the National Stock Exchange (NSE) on Wednesday. However, the result was announced after the market closed.

The firm has a total market capitalisation of ₹1.58 lakh crore, as of July 16, 2025, as per data on the NSE.