Tech Mahindra Q2 results: Net profit rises over 8% QoQ; board declares interim dividend of ₹15 per share for FY27

The company’s revenue from operations surged 3% on a quarter-on-quarter (QoQ) basis to ₹16,180 crore during the quarter under review, compared to ₹15,712 crore in the June quarter of the 2025-26 fiscal year (Q1 FY27).

On a yearly basis, the large-cap IT services company’s revenue jumped 15.6% from ₹13,995 crore in the first quarter of FY26.

In constant currency terms, the revenue jumped up 2.4% QoQ and 7.2% annually at $1,693 million.

At an operational level, its EBIT (earnings before interest and taxes) stood at ₹2,387 crore, registering a growth of 5.4% QoQ from ₹2,264 crore. The EBIT margin also increased 40 basis points (bps) to 14.8% in Q2 FY27 in contrast to 14.4% recorded in the previous quarter of FY27.

“With 7.2% year-on-year constant currency growth, we continue to sustain business momentum. As we celebrate our 40th anniversary this quarter, we look ahead with confidence, building on our legacy of innovation, entrepreneurship, and long-term value creation for our stakeholders,” said Mohit Joshi, CEO and Managing Director, Tech Mahindra.

Tech Mahindra reported free cash flow of $135 million for the period. The company also recorded new deal wins with a total contract value (TCV) of $1,023 million, marking a 25.4% year-on-year increase.

For Q2 FY27, the IT firm reported a total headcount of 152,206. The company’s last twelve months (LTM) IT attrition stood at 11.7%. Its cash and cash equivalents at the end of the quarter stood at ₹7,330 crore.

The company’s basic earnings per share (EPS) expanded to ₹17.84 apiece in the second quarter.

Commenting on the earnings, Tech Mahindra Chief Financial Officer Rohit Anand said, "We delivered another strong quarter of growth, with margins expanding for the twelfth consecutive quarter, reflecting disciplined execution. We continue to invest in AI to improve productivity, drive innovation and build capabilities for future growth."

Interim dividend and bonus issue

Along with the earnings, the board of directors of Tech Mahindra declared an interim dividend of ₹15 per equity share of the face value of ₹5 each (300%) for the financial year 2026-27. The firm has set a record date for the dividend on October 23, 2026.

The firm’s board has also recommended a 1:1 bonus issue, subject to shareholders’ approval. Under the proposal, shareholders will receive one bonus share of ₹5 each for every existing share of ₹5 held on the record date.

The board has also recommended increasing the company’s authorised share capital from ₹924.3 crore to ₹1,000 crore. The record date of issue and entitlement of bonus equity shares will be announced later, Tech Mahindra said.

On Thursday, shares of Tech Mahindra settled at ₹1,650 apiece on the National Stock Exchange, rising 4.75%. The earnings, however, came after the market hours. The firm has a market capitalisation of ₹1.62 lakh crore.