The IT major Tech Mahindra has reported a strong set of numbers for the first quarter of financial year 2026 after TCS and HCLTech. From 34 per cent year-on-year (YoY) rise in consolidated net profit to 34 per cent YoY jump in EBIT, here are 5 key takeaways from Q1FY26.
1. Tech Mahindra net profit at Rs 1,146 crore; revenue grows 2.66 per cent YoY
Tech Mahindra reported a sharp 34 per cent year-on-year (YoY) rise in consolidated net profit to Rs 1,14.60 crore. The company posted revenue of Rs 13,351 crore during the June quarter, up 2.66 per cent from the year-ago period.
The IT services major also recorded a 34 per cent YoY jump in EBIT to Rs 1,477 crore, while EBIT margins improved by 260 basis points to 11.1 per cent. Profit margins stood at 8.5 per cent, showing a 190 basis points expansion from Q1FY25.
2. Tech Mahindra posts 51 per cent YoY growth in deal wins
Tech Mahindra secured total contract value (TCV) worth $ 809 million in Q1, marking a strong 51 per cent YoY growth in deal wins.
The company was selected for multiple large projects across the telecom, hi-tech, manufacturing, fashion, insurance, and railway sectors during the quarter, spanning the US, UK, and Japan.
3. Headcount and attrition trends
Tech Mahindra reported a 12.6 per cent attrition rate in Q1FY26, with a total headcount of 148,517—an increase of 897 employees year-on-year. However, the company implemented targeted job cuts in key areas, notably reducing its IT workforce from 80,417 to 79,987 and sales & support staff from 9,026 to 8,252, indicating a sharp focus on cost control.
4. Free cash flow and liquidity position
The company generated free cash flow of $ 86 million in the quarter. It also ended the period with cash and cash equivalents of Rs 8,072 crore, supporting its investments in digital capabilities and strategic partnerships.
5. Tech Mahindra did not announce any dividend payout
Tech Mahindra did not announce any dividend payout this quarter. However, earlier in April, the IT major had recommended a final dividend of Rs 30 per equity share of face value Rs 5 each for FY25. This was in addition to the interim dividend of Rs 15 per equity share declared in November 2024. The total dividend for FY25 amounted to Rs 45 per equity share on a par value of Rs 5 each.