Tech Mahindra Q1 FY26 Results: Will the IT major fare better than peers TCS and HCLTech? Check key points

Tech Mahindra shares settled with marginal gains on Tuesday ahead of the Q1 FY26 earnings announcement, which is scheduled on July 16. The overall sentiment around the IT sector earnings remains subdued, with the sector participants reporting a weak set of numbers.

The IT firm’s Makers Lab develops future-ready solutions by leveraging next-generation technologies like Artificial Intelligence (AI), Machine Learning (ML), Robotics, Internet of Things (IoT), Augmented Reality (AR)/Virtual Reality (VR), and 5G—the network of the future.

On a year-to-date (YTD) basis, Tech Mahindra shares traded 7% lower in 2025. However, the stock has recovered 32% from the recent lows of April. The shares outperformed the NIFTY IT index, which is trading 13% lower in 2025 on a YTD basis.

Q4 FY25 results

In the previous quarter, the tech major had posted a growth of nearly 4% in revenue year-on-year (YoY) to ₹13,384 crore as compared to ₹12,784 crore in the same period last year. Sequentially, the revenue had inched up marginally by 0.7%.

However, the EBITDA improved 67% to ₹1,840 crore in contrast to ₹1,099 crore in the same quarter of the last fiscal year. The operating margins for the quarter also improved to 13.7% in Q4 FY25.

For Q4 FY25, Tech Mahindra's profit after tax had improved 16% sequentially and 73% YoY to ₹1,143 crore.

What to expect from Q1 FY26

Analysts are now cautious about the outlook for the overall IT sector growth after the weak management commentary by TCS and HCL Technologies. For Tech Mahindra, the overall results are expected to remain muted with some improvement in margins due to favourable currency movement and cost optimisation measures.

The management commentary for the full FY26 is expected to remain stressed due to delays in renewals and slow pipeline growth for the industry. However, BFSI will continue to be the top performer in the segmental growth as the telecom segment witnesses stress and consolidation.