Tech Mahindra Q2 results: Net profit rises 153% YoY to ₹1.25 crore, ₹15 interim dividend declared

Furthermore, the firm also declared an interim dividend at ₹15 per share.

The consolidated net profit grew 46.8% in Q2 from ₹ 851 crore in the previous quarter of the current fiscal year, the company said in a regulatory filing on Saturday, October 19.

The IT service company’s revenue for the second quarter of FY25 came to ₹13,312.2 crore, a 3.49% rise from ₹12,863.9 crore in the second quarter of FY24.

The revenue grew 2.36% from ₹13,005 crore in the previous quarter.

The company clocked in an EBITDA (earnings before interest, taxes, depreciation, and amortisation) of ₹1,750 crore in the current quarter, witnessing a YoY jump of 63.2% and a quarterly increase of 11.9%.

The EBITDA margin stood at 3.1% in the quarter ended September, rising 480 bps YoY and 110 bps from the last quarter.

The company reported earnings per share (EPS) of ₹14.10.

The company's TCV (Total Contract Value), or net new deal wins, stood at $603 million in the second quarter of FY25.

The CEO of Tech Mahindra, Mohit Joshi, said that the company has continued to progress its strategic improvement efforts even as the overall IT services industry has remained soft.

“We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter,” Joshi added.

The CEO had unveiled Project Fortius in April, a three-year plan to achieve a 15% operating margin with a focus on organic growth.

“This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimisation and steady free cash flow generation as we continue our journey towards FY27 stated targets. In line with our capital allocation policy the board has declared an interim dividend of ₹15 per share,” Mohit Anand, the CFO of Tech Mahindra said.

On Friday, shares of Tech Mahindra closed at ₹1,687.90 per share price on the NSE, down 0.65%.