Tech Mahindra reported its audited consolidated financial results for the quarter ended June 30, 2026, recording a 28.5% year-on-year increase in net profit to ₹14.65 billion. The company’s revenue from operations for the quarter stood at ₹157.12 billion, marking a 17.7% increase compared to the same period last year. The results were reviewed by the Audit Committee and approved by the Board in its meeting held on July 16, 2026.

Consolidated Performance

The consolidated total revenue from operations for Q1FY27 was ₹157,119 million, up from ₹133,512 million in the quarter ended June 30, 2025. Net profit after tax for the owners of the company rose to ₹14,651 million from ₹11,406 million in the corresponding quarter of the previous year. Total comprehensive income for the quarter was reported at ₹16,265 million.

Earnings Per Share

Basic earnings per equity share (EPS) for the interim period increased to ₹16.53 from ₹12.87 in the prior year. Diluted EPS also improved to ₹16.50 from ₹12.86 during the same period. The equity share capital as of June 30, 2026, stood at ₹4,429 million.

Standalone Results

In its standalone financial results, Tech Mahindra reported revenue from operations of ₹132,186 million for the quarter ended June 30, 2026, compared to ₹115,946 million in the corresponding quarter of the previous year. Profit after tax for the standalone entity was ₹11,379 million, slightly lower than the ₹11,784 million recorded in the same period last year.

Key Financial Metrics

The following table outlines the consolidated financial performance for the quarter:

Auditor and Regulatory Disclosures

The auditors issued an unmodified opinion on the audited standalone and consolidated interim financial results. However, they invited attention to an Emphasis of Matter regarding financial irregularities committed by the promoters of erstwhile Satyam Computer Services Limited (SCSL) before its acquisition by the company in June 2013. The management’s response to this matter is available in the detailed formats filed with the stock exchanges.

Tech Mahindra has extended the timeline for completing the acquisition of a 20% equity stake in its subsidiary, Tech Mahindra Arabia Limited, to August 31, 2026. The extension was mutually agreed upon between Tech Mahindra London Limited (TMLL), a wholly-owned subsidiary, and Midad Company Limited (Midad) on July 16, 2026, as certain conditions precedent for the transaction are still underway.

The acquisition is being pursued pursuant to the exercise of a put option by Midad. Upon completion, Tech Mahindra and TMLL will collectively hold 100% shareholding in Tech Mahindra Arabia Limited. The transaction is classified as a related party transaction under Regulation 2(1)(zc) of the SEBI Listing Regulations and is being conducted on an arm's length basis.

Transaction Details

The acquisition involves the purchase of 200 equity shares of 1000 SAR each, representing the remaining 20% stake in the Saudi Arabia-based entity. The cost of acquisition is set at SAR 83.7 million, approximately equivalent to ₹206.2 crore based on an exchange rate of ₹24.64 per SAR. The consideration will be paid in cash.

Regulatory and Financial Context

Completion of the transaction is subject to approvals from the General Authority for Competition (GAC) in the Kingdom of Saudi Arabia. Tech Mahindra Arabia Limited operates in the IT services sector, providing digital system integration and consulting services for the energy, utilities, banking, and telecom sectors.

For the financial year ended March 31, 2025, the target entity reported a turnover of SAR 181.6 million and a net worth of SAR 86.57 million. The company's turnover has grown from SAR 161.34 million in FY2022-23 to SAR 181.56 million in FY2024-25.