IT services major Tech Mahindra will release its fiscal first quarter earnings report today (July 16). “Tech Mahindra Ltd, a specialist in digital transformation, consulting, and business reengineering services, will announce its audited results for the first quarter ended 30th June 2025 on 16th July 2025,” it said in a regulatory filing. After the release of the Q1 numbers, the leadership team will address a press conference between 5:45-6:45 pm where they will discuss on the performance for the quarter followed by a Q&A session.
Analysts and brokerage firms maintained that Tech Mahindra is expected to post a marginal decline (approximately 0.8 per cent) in sequential revenue growth in constant currency terms, weighed down by continued weakness in the hi-tech segment and a seasonally muted performance in its BPO division. Despite the subdued revenue, margins are projected to improve on continued cost optimisation measures.
According to a Business Standard poll, Tech Mahindra is expected to record a 0.80 per cent quarter-on-quarter decline in net profit to Rs 1,184.50 crore for the first quarter of FY26. Revenue, meanwhile, is expected to drop by 0.12 per cent to Rs 13,367.58 crore amid muted recovery in the telecom and manufacturing segments.
Following the trend set by Tata Consultancy Services (TCS) and HCLTech, Tech Mahindra is expected to report muted growth across key metrics.
Tech Mahindra Q4FY25 performance
For the fourth quarter of FY25, Tech Mahindra posted a profit jump of 76.51 per cent to Rs 1166.70 crore as compared to Rs 661.00 crore recorded during the corresponding quarter of FY24. The IT firm had posted revenue from operations at Rs 13,384.00 crore, up 3.98 per cent on-year. The company EBITDA stood at Rs 1,378 crore.
Tech Mahindra has also recommended a final dividend of Rs 30 per equity share of the face value of Rs 5 each (600 per cent) for the financial year ended 31st March, 2025. The total dividend for FY25 was Rs 45 per equity share on par value of Rs 5 each i.e. 900 per cent.
The management team had said that FY26 is expected to be better than FY25 on the back of deal wins, acquisitions.
Tech Mahindra Q1 results: Key expectations
Tech Mahindra, according to analysts, is expected to report a marginal decline of under 1 per cent in constant currency revenue for the quarter ended June 30, 2025, while analysts expect its EBIT margins to show improvement. “We expect Tech Mahindra to report a 0.5 per cent QoQ CC revenue drop (1 per cent QoQ growth in USD), due to continued weakness in hi-tech as well as seasonal weakness in the Comviva business,” Elara Capital said while maintaining that margin is estimated to improve by 40bp QoQ on continued cost rationalization under project Fortius.
Kotak Institutional Equities said, “We forecast CC revenue decline due to: (1) weak hitech vertical, (2) seasonal weakness in Comviva business. These headwinds will more than offset tailwinds from new deal ramp-ups. EBIT margin expansion of 60 bps QoQ will be led by rupee depreciation and cost optimization initiatives.”
InCred Equities projected a 0.9 per cent sequential decline in constant currency revenue, driven by continued softness in the telecom, hi-tech, and automotive segments within the manufacturing vertical. It further added that EBIT margin expansion is likely to be supported by cost rationalization efforts, though gains may be partially offset by revenue weakness and the impact of INR appreciation.
In terms of deal, analysts said that the company is expected to maintain steady deal wins of around $700-750 million, with a healthy proportion of these new contracts being at higher margin levels, signaling a quality mix in its order book. Deal wins are expected to post an improvement over the previous quarter and will remain significantly higher on a year-on-year basis.
Overall, after consistently improving its operating margins over the last six quarters, Tech Mahindra’s profitability will again be under the spotlight in Q1FY26.
Going forward, Kotak Institutional Equities said, “We expect solid FY2026 on profitability. Revenue growth is expected to be weaker due to the rationalization of low-margin businesses and risks in the hi-tech vertical. The telecom vertical is holding on steady.”
Tech Mahindra Q1 results: Key things to watch out for
In terms of key monitorables, brokerage firms said, investor focus is expected to be on:
(1) measures to improve to margins to 15 per cent by FY2027,
(2) FY26 revenue and margin outlook,
(3) time frame within which turnaround initiatives will start showing up in revenue performance,
(4) growth in the keenly watched financial services vertical,
(5) reasons for weak hi-tech and BPO businesses,
(6) health of the deal pipeline and positioning in cost take-out deals,
(7) impact of new client additions from must-have account list; ramp ups in non-telecom verticals, update on renewal decision of US Hi-tech client
(8) any revenue leakage in existing accounts and positioning in vendor consolidation events,
(9) TechM’s point of view on GenAI, expected productivity benefits and likely disruption in the BPO business.
Tech Mahindra Q1 results: Estimates from brokerage firms
Kotak Institutional Equities
Revenue
Rs 13,395.10 crore; Up 3.0% YoY
EBIT
Rs 1,490.80 crore; Up 35.2% YoY
Adjusted net profit
Rs 1,186.00 crore; Up 39.3% YoY
Nuvama
Revenue
Rs 13,394.90 crore; Up 3.0% YoY
EBIT
Rs 1,476.60 crore; Up 34.0% YoY
Adjusted PAT
Rs 1,218.40 crore; Up 43.1% YoY
Nomura
Revenue
Rs 13,334.70 crore; Up 2.5% YoY
EBIT margin
10.8%
InCred Equities
Revenue
Rs 13,353.00 crore; Up 2.7% YoY
EBIT
Rs 1,488.90 crore; Up 35.1% YoY
Profit
Rs 1,197.60 crore; Up 40.7% YoY
HDFC Securities
Net sales
Rs 13,393.00 crore; Up 3.0% YoY
EBIT
Rs 1,493.00 crore; Up 35.4% YoY
APAT
Rs 1,234 crore; Up 44.9% YoY
Elara Capita
Revenue
Rs 13,455.80 crore; Up 3.5% YoY
EBIT
Rs 1,468.30 crore; Up 33.2% YoY
Adjusted net profit
Rs 1,201.60 crore; Up 41.1% YoY
JM Financial
Revenue
Rs 13,406.30 crore; Up 3.1% YoY
EBIT
Rs 1,461.60 crore; Up 32.6% YoY
Net profit
Rs 1,193.80 crore; Up 40.2% YoY