Tech Mahindra Q4 Results: PAT rises 21% sequentially to Rs 1,354 crore, revenue meets mark

Tech Mahindra Q4 FY26 Results: Pune-headquartered Tech Mahindra on Wednesday registered a consolidated net profit of Rs 1,353.8 crore for the quarter ended March 31, marking a sequential rise of 20.7 per cent that fell short of Street expectations.

Its revenue came in at Rs 15,076.1 crore for the January-March quarter, marking an increase of 4.7 per cent compared to the previous quarter.

According to Zee Business research, the IT major was estimated to report a net profit of Rs 1,453 crore and revenue of Rs 14,819 crore.

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In dollars, the IT firm's fourth-quarter revenue grew 0.9 per cent sequentially to $1,625 million.

Revenue in constant currency terms rose 0.6 per cent, according to a statement.

Segment-wise revenue

Tech Mahindra's IT revenue stood at Rs 12,660.8 crore, marking quarter-on-quarter growth of 4.8 per cent.

Revenue from its BPS unit rose 4.2 per cent to Rs 2,415.3 crore.

Operational performance

Tech Mahindra's March-quarter earnings before interest and taxes (EBIT) rose 5.5 per cent sequentially to Rs $223 million.

Its EBIT margin came in at 13.8 per cent, up 70 bps over the previous quarter.

The IT company's margin was estimated at 13.6 per cent, according to the research.

Management commentary

“We are accelerating our transition to an AI-led organisation, embedding AI across services and expanding our capabilities to enhance value delivery for our clients. This is reflected in our highest deal wins in recent years including consecutive quarters exceeding $ 1 billion. We remain focused on scaling with discipline and are on track to delivering our FY27 commitments," said Mohit Joshi, CEO and Managing Director, Tech Mahindra.

Tech Mahindra CFO Rohit Anand said FY26 marked the end of the stabilisation phase of the company's transformation journey. He said that the company's margins expanded for the 10th consecutive quarter despite a challenging macro environment.

"In line with our disciplined capital allocation framework and commitment to our shareholders, we increased the dividend by over 13%, taking total dividends declared for the year to ₹51 per share, our highest ever," added Anand.

Tech Mahindra Results: Headcount and attrition

Attrition at the IT company eased to 12.1 per cent in the March quarter, from 12.3 per cent in the previous three months.

Its total headcount stood at 1,47,623, down by 1,108 on a year-on-year basis, according to the statement.

Tech Mahindra shares

Tech Mahindra shares recovered much of their intraday losses after the earnings announcement. At 2:40 pm, the largecap IT stock was trading down 1.9 per cent at Rs 1,471.7 apiece on BSE.

Earlier in the day, the stock fell as much as 6.4 per cent to Rs 1,404.3 apiece.

At the current level, the stock has lost 8.6 per cent of its value so far this year. The Nifty50 is up 1.1 per cent while the Nifty IT is down 19.2 per cent during this period.

Tech Mahindra dividend

The IT firm declared a final dividend of Rs 36 per equity share for the financial year ended March 31 -- a 720 per cent payout given the face value of Rs 5 per equity share.

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