Tech Mahindra reported a net profit increase of over 8% quarter-on-quarter (QoQ) in the second quarter of the 2026-27 fiscal year. The company's revenue from operations rose 3% QoQ to ₹16,180 crore, showing strong growth both quarterly and annually. Alongside these results, the board declared an interim dividend of ₹15 per share for FY27.
- Revenue increased 3% QoQ to ₹16,180 crore and 15.6% year-on-year (YoY).
- In constant currency terms, revenue grew 2.4% QoQ and 7.2% YoY to $1,693 million.
- EBIT rose 5.4% QoQ to ₹2,387 crore, with EBIT margin improving to 14.8%.
- New deal wins totaled $1,023 million, a 25.4% YoY increase.
- Interim dividend of ₹15 per share declared for FY27.
How did Tech Mahindra perform financially in Q2 FY27?
Tech Mahindra's revenue from operations for Q2 FY27 was ₹16,180 crore, up 3% from ₹15,712 crore in Q1 FY27. Compared to the same quarter last year, revenue increased by 15.6% from ₹13,995 crore. When measured in constant currency terms, revenue rose 2.4% QoQ and 7.2% YoY, reaching $1,693 million.
The company’s earnings before interest and taxes (EBIT) grew 5.4% QoQ to ₹2,387 crore, with the EBIT margin improving by 40 basis points to 14.8%. This indicates better operational efficiency and profitability.
What were the key operational highlights for Tech Mahindra?
Tech Mahindra reported free cash flow of $135 million during the quarter, reflecting strong cash generation. The company secured new deals with a total contract value (TCV) of $1,023 million, marking a 25.4% increase compared to the previous year.
The total employee headcount stood at 152,206, with an attrition rate of 11.7% over the last twelve months. The company ended the quarter with cash and cash equivalents of ₹7,330 crore, indicating a solid liquidity position.
What did Tech Mahindra’s leadership say about the results?
Mohit Joshi, CEO and Managing Director of Tech Mahindra, stated, "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."
What dividend did Tech Mahindra declare for FY27?
The board of directors declared an interim dividend of ₹15 per equity share, which has a face value of ₹5 each. This represents a 300% dividend payout. The record date for the dividend is set for October 23, 2026.
How did the stock market respond to Tech Mahindra’s Q2 results?
On the day of the announcement, Tech Mahindra’s shares closed at ₹1,650 on the National Stock Exchange, rising by 4.75%. The company has a market capitalization of ₹1.62 lakh crore, reflecting investor confidence in its performance and future prospects.
Overall, Tech Mahindra’s Q2 FY27 results demonstrate strong financial growth, improved profitability, and positive business momentum. The interim dividend declaration further rewards shareholders, highlighting the company’s commitment to value creation.
