Tech Mahindra on Wednesday, July 16 announced that its consolidated net profit rose 34% y-o-y to ₹1,140.6 crore in Q1 FY26 from ₹851.5 crore in the same period last year.
The Pune-based company’s operating revenue stood at ₹13,351 crore in the quarter under review, up 2.7% y-o-y to ₹11,263.7 crore from ₹13,005 crore in the June quarter of FY25. In Q1 FY26, Tech Mahindra generated revenues of ₹11,263.7 crore from its IT segment, up 3.55% from ₹10,878 crore in the same period last year. However, revenues from its business process services (BPS) declined 1.88% to ₹2,087.5 crore from ₹2,127.5 crore in the same quarter last year.
During the quarter, the US market contributed 49.2% to its performance mix, showing a decline of 5.9% compared to the same quarter last year. This was followed by Europe, which contributed 26% to its performance mix in Q1 FY26, up 11.7% compared to the same quarter last year. Further, the rest of the world contributed 24.8%, up 2.9% over the same quarter last year.
At the operational level, its EBIT (earnings before interest and tax) grew 34% to ₹1,477 crore in Q1 FY26.
The IT company’s dollar revenue stood at $1,564 million in the quarter under review, up 1% quarter-on-quarter. Meanwhile, its revenue in constant currency (CC) terms fell 1.4% sequentially and 1% on an annual basis.
Commenting on the Q1 results, Mohit Joshi, CEO and Managing Director, Tech Mahindra, said: “Our performance continues to improve, reflecting disciplined execution and a focused strategy. The number of deals grew 44% on a last twelve months (LTM) basis, supported by broad momentum across sectors and geographies.”
Tech Mahindra said AI Delivered Right has garnered strong customer support since its launch last quarter, leading to multiple deal wins and validation across its key pillars. “The advanced AI consulting methodology and partner ecosystem are accelerating agentic AI adoption—allowing customers to verify ROI and prioritize use cases efficiently,” the company said in a statement.
The tech company’s total headcount grew by 897 year-on-year to 1.48 lakh during the quarter.
Tech Mahindra’s total contract value (TCV) stood at $809 million in the quarter, compared to $534 million in Q1 FY25.
“We have recorded margin growth for seven consecutive quarters—a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program is delivering meaningful results and driving operational improvements,” the company’s chief financial officer Rohit Anand said.
Tech Mahindra shares closed 1.87% higher at ₹1,608.5 per share on the National Stock Exchange (NSE) on Wednesday. However, the results were announced after market close.
According to NSE data, the company’s total market capitalisation as of July 16, 2025 is ₹1.58 lakh crore.
