Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has reported strong financial results for the first quarter, demonstrating resilience and growth in a challenging market environment.

Financial Highlights

The company reported a consolidated profit after tax of ₹1,141.00 crores, marking a significant 34% year-on-year increase. Revenue for the quarter stood at ₹13,351.00 crores, up 2.7% compared to the same period last year.

Key financial metrics include:

• EBIT (Earnings Before Interest and Taxes) of ₹1,477.00 crores, up 34% YoY
• EBIT margin of 11.1%, expanding by 260 basis points YoY
• Diluted Earnings Per Share (EPS) of ₹12.86

Strong Deal Momentum

Tech Mahindra secured new deals with a Total Contract Value (TCV) of $809 million during the quarter, representing a robust 51% year-on-year growth. The company's Last Twelve Months (LTM) deal wins increased by 44%, indicating strong business momentum across verticals and geographies.

Strategic Focus on AI Innovation

The company is making significant strides in artificial intelligence (AI) capabilities:

• Developed a portfolio of 200+ enterprise-grade AI agents across various industry segments
• Launched VerifAI, a patent-filed solution ensuring data validation in AI pipelines
• Formed a strategic alliance with KOGO AI to deliver scalable AI solutions using Agentic AI infrastructure
• Established an Agentic AI Production Center in collaboration with mimik

Mohit Joshi, CEO and Managing Director of Tech Mahindra, commented on the results: "Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies."

Operational Efficiency and Margin Expansion

Rohit Anand, Chief Financial Officer, highlighted the company's focus on operational improvements: "We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements."

Key Business Highlights

• Selected as a key 'growth partner' by a leading US-based consumer wireless operator
• Chosen as a strategic partner by a UK-based manufacturer for digital transformation
• Secured a multi-year engagement with a global fashion apparel brand for digital and data transformation services

Workforce and Attrition

As of the latest quarter, Tech Mahindra's total headcount stood at 148,517, with IT services accounting for 79,987 employees. The company reported an IT services LTM attrition rate of 12.6%, slightly higher than the previous quarter's 11.8%.

Looking Ahead

Tech Mahindra's strong financial performance, coupled with its focus on AI innovation and strategic partnerships, positions the company well for future growth. As the company continues to expand its capabilities in emerging technologies and secure high-value deals, it remains poised to capitalize on the growing demand for digital transformation services across global markets.

The company's ability to maintain margin expansion while investing in cutting-edge technologies demonstrates its commitment to balancing short-term performance with long-term strategic goals. As Tech Mahindra moves forward, its emphasis on AI-driven solutions and operational efficiency is likely to play a crucial role in sustaining its growth trajectory in the competitive IT services landscape.

Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has reported a robust financial performance for the first quarter, demonstrating resilience and growth amid a challenging global economic environment.

Strong Financial Performance

The company reported a consolidated profit after tax of ₹11,406.00 crore for Q1, marking a significant 34% year-on-year increase. Revenue for the quarter stood at ₹13,351.00 crore, up 2.7% compared to the same period last year.

Tech Mahindra's EBIT (Earnings Before Interest and Taxes) saw a substantial improvement, reaching ₹1,477.00 crore, a 34% increase year-on-year. The EBIT margin expanded by 260 basis points to 11.1%, reflecting the company's focus on operational efficiency and cost management.

Deal Wins and Business Momentum

One of the highlights of the quarter was the strong deal win performance. Tech Mahindra secured new deals with a Total Contract Value (TCV) of $809.00 million, representing a robust 51% year-on-year growth. On a Last Twelve Months (LTM) basis, deal wins have increased by an impressive 44%, indicating sustained business momentum across verticals and geographies.

Mohit Joshi, CEO and Managing Director of Tech Mahindra, commented on the performance: "Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies."

Operational Highlights

The company's IT services segment showed growth, with revenue up 0.7% quarter-on-quarter. The Business Process Services (BPS) segment performed even better, with a 2.9% quarter-on-quarter increase.

Tech Mahindra's client metrics remained strong, with the number of $50 million+ clients increasing to 26, up by 2 compared to the previous year. The company's top 20 clients now contribute 39% of the total revenue, indicating a healthy mix of large and growing client relationships.

Focus on AI and Innovation

Tech Mahindra has been making significant strides in artificial intelligence (AI) and innovation. The company has developed a portfolio of over 200 enterprise-grade AI agents across various industry segments, many of which are already in use at scale with clients. The company's AI Consulting Practice is enabling clients to validate ROI and prioritize use cases efficiently as they evaluate their AI roadmaps.

Outlook and Strategy

Rohit Anand, Chief Financial Officer of Tech Mahindra, highlighted the company's consistent margin improvement: "We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements."

The company's strategy focuses on delivering transformative scale at speed, with a full spectrum of services including consulting, IT, enterprise applications, business process services, engineering services, and AI & analytics.

Conclusion

Tech Mahindra's Q1 results demonstrate the company's ability to navigate challenging market conditions while driving growth and profitability. With a strong deal pipeline, focus on AI and innovation, and continued operational improvements, Tech Mahindra appears well-positioned to capitalize on the growing demand for digital transformation services globally.

As the company continues to expand its capabilities and client base, investors and industry observers will be watching closely to see if Tech Mahindra can maintain this momentum in the coming quarters.