Tech Mahindra, India’s sixth-largest IT company by market capitalization, announced its financial results for the quarter ending September after market hours on Tuesday. The company reported a net profit of ₹1,195 crore, missing the analysts’ consensus estimates of ₹1,300 crore.
Compared to the same period last year, net profit fell 5% but showed a 4.82% sequential improvement.
The revenue from operations, however, beat the estimates, rising 5.12% YoY to ₹13,995 crore, mainly due to the ramp-up of deal wins of BFSI, retail and manufacturing.
Its revenue from the Americas, which contributes nearly half of its total revenue, fell 2.7% in the quarter. Revenue from Europe grew 5.5%, while the Rest of the World (RoW), accounting for 24.8% of revenue, declined 0.5% year-on-year.
By vertical, the company’s largest segment, Communications, which makes up 32.7% of revenue, fell 2.2% YoY. However, growth was seen in BFSI, Manufacturing, and Retail, Logistics & Transport, which rose 6.2%, 5.2%, and 7.2%, respectively.
Its EBIT margin has improved sharply by 254 basis points YoY to 12.1%, led by cost optimization initiatives, which also came above the analysts estimates of 11.6%.
Deal TCV jumps 57% YoY
Tech Mahindra’s new deal bookings reached $3,168 million in Q2FY26, up from $2,955 million in the previous quarter and $2,018 million in the year-ago period, according to the company’s earnings filing.
Rohit Anand, Chief Financial Officer of Tech Mahindra, said, “This quarter marks the eighth consecutive period of margin expansion, driven by operational efficiency and disciplined execution. Our deal TCV is up 57% year-on-year on a trailing twelve-month (LTM) basis, supported by strong deal conversions.”
Attrition rate rises to 12.8%
The company’s voluntary employee attrition rate rose to 12.8% in September 2025, up from 10.6% in September 2024 and 12.6% in June 2025. This reflects an increase in the number of employees choosing to leave the company over the past year on a trailing twelve-month (LTM) basis, according to the company’s regulatory filing.
The total headcount stood at 152,714 employees as of September 30, 2025, down from 154,273 at the end of June 2025, marking a net decline of 1,559 employees during the quarter.
Announces ₹15 interim dividend
Alongside its financial results, the company declared an interim dividend of ₹15 per equity share, on a face value of ₹5 each (300%), the board said in a statement.
The board of directors, at its meeting held on October 14, 2025 (IST), approved the interim dividend. The company has fixed Tuesday, October 21, 2025, as the record date to determine the members eligible to receive the payout.
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