Tech Mahindra posted 8.2% sequential rise in net profit for the first quarter of the fiscal at Rs 1,465 crore (Q4: Rs 1,353.8 crore), buoyed by healthy revenue growth, the tax tech major announced on Thursday. The net profit however trailed Bloomberg estimates of Rs 1,583 crore.
Revenue for the quarter under consideration was up 4.2% sequentially at Rs 15,712 crore (Q4: Rs 15, 076 crore), beating Bloomberg estimates of Rs 15,458 crore.
The firm also beat street estimates on earnings before interest, taxation, depreciation and amortisation (EBITDA) of Rs 2,682 crore at Rs 2,743 crore, up 6.9% quarter on quarter.
EBIT for the quarter was up 8.6% sequentially and came in at Rs 2,264 crore.
“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,” Mohit Joshi, managing director and chief executive, Tech Mahindra, said.
New deal wins TCV for the quarter stood at $1.078 billion up from $1.073 billion in Q4FY26, and $809 million in Q1FY26.
“We delivered a strong Q1 performance with broad-based 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,” Rohit Anand, chief financial officer, Tech Mahindra said.
The company saw a dip in the number clients at 907 in the June quarter as compared to 913 in Q4FY26 and 916 in the first quarter of FY26. TechM added 4 $50 million clients, and 3 $10 million client over last quarter. It however saw the number of $1 million clients decline by 13 sequentially while the number of $5 million and $20 million clients remained same.
Employee metrics
During the quarter, the firm’s headcount reduced 0.58% sequentially to reach 146,760 as compared to 147,623 at end of March 2026, driven by reduction BPS, and IT while the company added employees in the sales workforce.
Tech Mahindra’s utilisation rate climbed sequentially to 87% versus 86.1% in the previous quarter while attrition reduced quarter on quarter at 11.8% (Q4FY26: 12.1%).
“As far as campus hiring is concerned, it has been a little bit volatile because we’ve had limited visibility into revenues. Now that our visibility is stronger, I’m assuming that the campus hiring program will restart. But we don’t have any numbers to share as of now for the annual intake that we expect to take,” Joshi said on the fresher intake strategy for FY27.
Industry-wise performance
Communications continued to be the largest vertical by revenue with a contribution of 32.3%, followed by manufacturing at 19.3%. BFSI accounted for 16.7% while technology and media accounted for 12.9% of the revenue. Communication and Technology verticals saw sequential revenue decline of 1.3% and 1.7% respectively.
BFSI grew 2.7% sequentially while retail and logistics grew 1.2%. Manufacturing grew 9% while, and healthcare and life sciences grew 2.5%.
Revenue by geography
The Americas accounted for 48.6% of TechM’s revenues while Europe accounted for 27.5%. The rest of the world contributed 23.9%.
The Americas showed a decline of 0.1% sequentially and a growth of 4.8% annually. Europe grew 8.1% sequentially and 12.1% annually, while the rest of the world grew 0.6% quarter on quarter, and 2.5% year-on-year.