Tech Mahindra shares trade in the red after Q2 results; here is how the IT major fared and expert views

The company had posted ₹1,250 crore profit in the year-ago period.

Shares of the company, in th early trade on Wednesday, were trading over 1% lower at ₹1,451.80 apiece on the NSE.

The Q2 FY26 profit, however, was marginally higher than the ₹1,141 crore reported in the preceding June quarter.

Its revenue grew to ₹13,995 crore from ₹13,313 crore seen a year ago and ₹13,351 crore in the quarter-ago period, as per an exchange filing.

Its managing director and chief executive, Mohit Joshi, said the Americas saw an over 2% decline in revenues during the quarter, mainly due to macroeconomic issues. From a sectoral perspective, its key vertical of communication witnessed a 2.5% decline.

Clients in other sectors like manufacturing (up 5.2%) and banking, financial services, and insurance (up 6.5% year-on-year) witnessed better spending, Joshi said.

The pre-tax profit margin expanded by 2.54 per cent year-on-year to 12.1 per cent during the reporting quarter.

Its chief financial officer, Rohit Anand, said this is the eighth consecutive quarter of an expansion in profitability and attributed the gains in Q2 to improved productivity and currency tailwinds.

The Mahindra group company closed new deals worth $816 million during the quarter, a rise of 57%, Joshi said, adding that the new business was broad-based, with clients from communications, manufacturing, retail, transport, and logistics segments signing up for services.

Commenting on the IT services market, Joshi said he sees the macro situations "stabilising" going ahead but added that it is "very fragile" and discretionary spend is very limited.

"Hopefully, there will be growth in the second half of the year," Joshi added.

The total employee headcount declined by 1,559 year-on-year to 1.52 lakh staffers as of September 30, 2025.

Joshi said the company continues hiring where it sees opportunities and added that this is a marginal reduction in staff.

The other income dipped to ₹40 crore from ₹522 crore in the year-ago period.

It had booked a ₹450 crore one-time gain a year earlier by selling a land parcel in Telangana.

Replying to a query on the impact of the H1-B visa move by the US, the largest market, contributing 45% of revenues, Joshi said only 1% of the workforce is in the US having H1-B visas and added that the impact will be "limited" on the company.

The company's board also declared an interim dividend of ₹15 per share.

Tech Mahindra Q2 FY26 result: Here is what leading analysts say

According to news reports, Nomura has given a thumbs-up to the company's numbers. It said Tech Mahindra posted good performance across parameters, and there is steady progress in the company's ongoing three-year turnaround.

CLSA is also positive, citing strong margin performance and improving visibility on its FY27 EBIT target of 15%.

However, analysts at Jefferies aren't amused enough. The reports say that Jefferies has noted that Tech Mahindra's margin and revenue trajectory were in line, but profit was hit by foreign exchange losses. It expects strong deal wins to support the second half of FY26 but sees FY27 growth recovery as unlikely.

About Tech Mahindra

Tech Mahindra is a global consulting service and systems integrator that operates in over 90 countries. The company is a part of the conglomerate Mahindra Group.

Mahindra & Mahindra entered into a joint venture with British Telecom in 1986. This led to the establishment of a technology outsourcing company known as Tech Mahindra. Initially, British Telecom held approximately a 30% stake in Tech Mahindra. There were gradual shifts in ownership over the years. British Telecom ended its ownership by selling its remaining 9.1% stake in December 2012.

Tech Mahindra specialises in IT solutions for the telecommunications sector. The company caters to clients across the global telecom industry. The client base of the company includes telecom service providers, telecom equipment manufacturers, and independent software vendors. The company also offers business process outsourcing (BPO) services.