IT major Tech Mahindra on July 16 reported 28% rise in net profit at Rs 1,465 crore for the quarter ended June 30, 2026. It reported net profit of Rs 1,141 crore in the year-ago period. The firm missed CNBC-TV18 estimates of Q1 net profit at Rs 1,684 crore.
The firm's revenue from operations increased 18% to Rs 15,712 crore in Q1FY27 as compared to Rs 13,351 crore in Q1FY26. Analysts, on average, expected revenue of 154.76 billion rupees, according to data compiled by LSEG.
The company's EBIT margin stood at 14.4 percent, up by 60 bps QoQ and a 330 bps jump YoY.
New deal wins total contract value (TCV) was $1 billion, growing 33% YoY. It remained flat sequentially.
"YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $1 billion dollars underscores the resilience of our business and the growing relevance of our offerings. Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY," said Mohit Joshi, CEO, Tech Mahindra.
"We delivered a strong Q1 performance with broadbased growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum. We remain committed to building a future-ready organization through continued investments in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent—while maintaining a clear focus on growth and operational rigor," said Rohit Anand, CFO, Tech Mahindra.
The communications division's revenue, which accounts for a third of the Pune-based company's total, rose 1.3%, while revenue at its manufacturing division - its second-largest, expanded 17.2% year-on-year.
Tech Mahindra's net new order bookings rose to $1.08 billion from $809 million a year earlier. The firm announced partnerships with Telefonica Germany, Microsoft and robotics platform Viam during the quarter.
Tech Mahindra shares closed 1.13% higher ahead of the results.