Tech Mahindra's Q1 net profit soars 34% to ₹1,141 crore
What's the story
Tech Mahindra has posted a stellar performance for the first quarter of FY26, with its net profit soaring 34% year-on-year. The IT giant reported a net profit of ₹1,141 crore for the April-June period, up from ₹852 crore in the same period last year. The company's consolidated revenue in Q1 grew by 3% year-on-year to ₹13,351 crore.
Financial overview
Revenue from Americas market declines by 5.9%
Despite a 5.9% decline in revenue from its biggest market, the Americas, Tech Mahindra managed to keep its total expenditure for the quarter under control. The company's expenses marginally fell to ₹11,952 crore during this period. The decline in revenue from the Americas market was offset by other regions such as Europe and Rest of the World (RoW), which saw healthy growth rates of 11.7% and 2.9%, respectively.
Booking growth
Net new bookings for the quarter rise to $809 million
Tech Mahindra's net new bookings for the quarter rose to $809 million, up from $798 million in the previous quarter and $534 million a year ago. Mohit Joshi, CEO and Managing Director of Tech Mahindra, said their performance is steadily improving due to disciplined execution and a focused strategy. He also noted that deal wins have increased by 44% on an LTM (last twelve months) basis across verticals and geographies.
Margin growth
Seven consecutive quarters of margin expansion
Rohit Anand, CFO of Tech Mahindra, emphasized the company's seven consecutive quarters of margin expansion. He said this is a clear reflection of the discipline and focus across their organization. On Wednesday, Tech Mahindra shares on NSE closed nearly 2% higher at ₹1,608.5 per share. The company's total headcount stood at 1,48,517—an annual increase of 897 employees. However, the company's attrition rate in Q1 stood at a relatively high 12.6% versus 11.8% a quarter ago.