Tech Mahindra posted 4.7% sequential growth in net profit for the second quarter of the fiscal at ₹1,195 crore (Q1: ₹1,141 crore), the Mumbai-based technology major announced on Wednesday. The figure fell short of Bloomberg estimates of ₹1,285 crore.
Revenue for the quarter rose 4.8% sequentially to ₹13,995 crore (Q1: ₹13,351 crore), beating Bloomberg’s projection of ₹13,778 crore.
The company also outperformed street estimates on Ebitda, reporting ₹2,168 crore against expectations of ₹2,084 crore, up 12% quarter on quarter. Ebitda margin expanded to 15.5% compared to 14.5% in the previous quarter, while net profit margin remained flat at 8.5%.
“We delivered broad-based growth this quarter, reflecting the strength of our strategy and execution. We launched TechM Orion, our next-generation AI platform, and TechM Orion Marketplace to help enterprise accelerate autonomous transformation. Being recognized by industry analysts reinforces our leadership in advancing next-generation AI,” said Mohit Joshi, managing director and CEO of Tech Mahindra.
New deal win TCV stood at $816 million, up from $809 million in the previous quarter and $603 million in Q2FY25. The management attributed the profit and Ebitda growth to operational efficiency initiatives during the quarter.
“This quarter marks the eighth consecutive period of margin expansion, driven by operational efficiency and disciplined execution. Our deal TCV is up 57% year-on-year on LTM basis, supported by strong deal conversions,” said Rohit Anand, CFO of Tech Mahindra.
The company reported a client count of 907 in Q2FY26, down from 916 in Q1FY26 and 935 in Q2FY25. Most of the churn occurred in the $1 million and $10 million client brackets.
“From a macro perspective, we see the macro as stabilising and maybe improving in parts, but it is still fragile. It is unlikely (that there will be) any sort of V-shaped recovery in spend, but we do see stabilisation and hopefully growth in the second half of the year,” Joshi said.
He added, “We expect to see a steady growth, obviously subject to the broader economic situation. This quarter, we’ve delivered 1.6% constant currency growth and an expansion in margins. We expect this trend to continue in H2.”
Employee metrics
During the quarter, Tech Mahindra’s headcount grew 2.82% sequentially to 152,714, up from 148,517 at the end of June 2025, driven largely by additions to the BPS workforce. IT and sales headcount saw a slight dip. On a year-on-year basis, total headcount declined 1.01% from 154,273 in Q2FY25 due to reduced IT staffing.
The company’s utilisation rate improved to 86.3%, up from 85.1% in the previous quarter. Attrition ticked up marginally to 12.8% (Q1FY26: 12.6%).
Joshi noted that Tech Mahindra has limited dependence on US H-1B visas, insulating it from major policy risks. “We have roughly about 150,000 people in the company, only about 1% of these people are on H-1B visa. And if I look at our US workforce itself, the huge majority is either citizens or people on green cards. So, to that degree, our dependence on H-1B is limited,” he said.
He continued that while any change to this program will have an impact on the firm, the focus for TechM is to ensure it is able to continue the work it has done to build a stronger employer brand in the US and ensuring it can firewall and retain its top employees in the US and other markets as it starts seeing attrition.
“We do have a network of delivery capabilities across the world, including in the Americas, in Brazil, in Mexico, in Canada… so it’s a comprehensive strategy, but I do want to stress that the impact of any H-1B changes on us is limited,” he added.
Industry-wise performance
The communications vertical remained the largest contributor to revenue at 32.7%, followed by manufacturing at 18.1%, BFSI at 16.8%, and hi-tech and media at 13.1%. Communications (-2%) and technology, media & entertainment (-0.4%) were the only verticals to register sequential declines. Meanwhile, manufacturing grew 5.3%, healthcare and life sciences 2.3%, BFSI 3.8%, and retail, logistics & transport surged 9% quarter-on-quarter.
Revenue by geography
The Americas accounted for 49.8% of TechM’s revenues while Europe accounted for 25.4%. The rest of the world contributed 24.8%. The Americas showed a growth of 2.6% sequentially and decline of 2.7% annually. Europe declined 1.2% sequentially but grew 5.5% annually, while the rest of the world grew 1.6% quarter on quarter, but declined 0.5% year-on-year.