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Tech Mahindra Q2 Profit Jumps 33% on Strong Telecom and AI Deal Demand

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TECHM₹1,765.10 6.98%

Tech Mahindra Limited (NSE:TECHM) posted a 32.7% year-on-year increase in September-quarter net profit to 1,586 crore rupees, buoyed by solid revenue expansion and higher operational efficiency. Total revenue reached 16,180 crore rupees, up 15.6% compared to the same period last year and up 3% sequentially. The company's stock rose 5.48% to 1,740 INR following the earnings report.

The financial performance was supported by steady growth across major geographic regions. The Americas remained the largest business driver at 48.5% of total revenue with 4.1% annual growth, while Europe led growth pace at 16.2% year-on-year. Operating margins expanded to 14.8%, marking twelve consecutive quarters of margin gains, aided by artificial intelligence toolchains and cost management.

Looking ahead, the IT services firm relies on steady contract momentum, having signed $1.02 billion in new deals during the quarter. Investors will watch whether the company can maintain large deal bookings above $1 billion while continuing its expansion into telecom platform modernization and enterprise AI services.

Key points

  • Tech Mahindra Limited (NSE:TECHM) reported Q2 net profit of 1,586 crore rupees, up 32.7% year-on-year and 8.3% sequentially.
  • Quarterly revenue rose 15.6% year-on-year to 16,180 crore rupees, with constant-currency revenue increasing 7%.
  • Operating margin expanded 260 basis points year-on-year to 14.8%, marking 12 consecutive quarters of margin expansion.
  • New contract wins reached $1.02 billion, exceeding $1 billion for the third straight quarter.
  • Shares of Tech Mahindra rose 5.48% to 1,740 INR following the results announcement.

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Questions and answers

What was Tech Mahindra's net profit in Q2?

Tech Mahindra reported a Q2 net profit of 1,586 crore rupees, up 32.7% from the previous year.

How much did Tech Mahindra's revenue grow in Q2?

Revenue increased 15.6% year-on-year to 16,180 crore rupees, growing 3% from the prior quarter.

What were Tech Mahindra's new deal wins in the second quarter?

The company secured $1.02 billion in new deal wins, exceeding $1 billion for the third straight quarter.