Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has announced its financial results for the first quarter, showcasing robust growth and improved profitability.

Financial Highlights

Tech Mahindra reported a consolidated profit after tax of ₹11,406.00 million for Q1, marking a significant 34% year-over-year increase. The company's revenue from operations stood at ₹133,512.00 million, up 2.7% compared to the same quarter last year.

Key financial metrics for Q1 include:

Strong Deal Momentum

The company witnessed substantial growth in new deal wins, with total contract value (TCV) reaching $809.00 million in Q1, representing a 51% year-over-year increase. On a last twelve months (LTM) basis, deal wins have increased by 44%, indicating strong business momentum across verticals and geographies.

Operational Performance

Tech Mahindra's IT services segment grew by 0.7% quarter-on-quarter, while the Business Process Services (BPS) segment saw a 2.9% growth. The company's IT headcount stood at 79,987, with IT attrition rate at 12.6% on an LTM basis.

Management Commentary

Mohit Joshi, CEO and Managing Director of Tech Mahindra, stated, "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."

Rohit Anand, Chief Financial Officer, added, "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."

Strategic Initiatives and Partnerships

Tech Mahindra has been actively expanding its capabilities in artificial intelligence and cloud technologies. The company announced several key partnerships and initiatives during the quarter:

1. Launched a new managed services offering for Cisco Multicloud Defense.
2. Named a Red Hat Premier Partner globally.
3. Partnered with ServiceNow to deliver next-generation broadband solutions for Communication Service Providers.
4. Collaborated with CrateDB to revolutionize the automotive, manufacturing, and smart factory sectors with advanced agentic AI solutions.

Outlook

With a strong deal pipeline and focus on operational efficiency, Tech Mahindra is well-positioned to capitalize on the growing demand for digital transformation services. The company's investments in AI and cloud technologies are expected to drive future growth and maintain its competitive edge in the global IT services market.

As Tech Mahindra continues to expand its capabilities and client base, investors and industry observers will be watching closely to see if the company can sustain its growth trajectory and profitability improvements in the coming quarters.

Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has announced its financial results for the first quarter, showcasing robust growth and improved profitability.

Financial Highlights

• Revenue reached ₹13,351.00 crores, up 2.7% year-over-year (YoY)
• EBIT (Earnings Before Interest and Taxes) stood at ₹1,477.00 crores, a significant increase of 34% YoY
• EBIT margin expanded by 260 basis points YoY to 11.1%
• Consolidated Profit After Tax (PAT) grew by 34% YoY to ₹1,141.00 crores
• Diluted Earnings Per Share (EPS) increased to ₹12.86

Strong Deal Momentum

Tech Mahindra reported new deal wins with a Total Contract Value (TCV) of $809 million for the quarter, representing a substantial YoY growth of 51%. The company's deal wins have increased by 44% on a last twelve months (LTM) basis, indicating strong business momentum across verticals and geographies.

Operational Performance

The company's IT services segment grew by 0.7% quarter-over-quarter (QoQ), while the Business Process Services (BPS) segment saw a 2.9% QoQ increase. Tech Mahindra's total headcount stood at 148,517, with IT attrition rate at 12.6% for the last twelve months.

Management Commentary

Mohit Joshi, CEO and Managing Director of Tech Mahindra, stated, "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."

Rohit Anand, Chief Financial Officer, added, "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

• Tech Mahindra was selected as a key 'growth partner' by a leading US-based consumer wireless operator for its Customer Operations transformation.
• The company secured a multi-service line deal with a leading UK-based Telco to deliver and manage applications across its fixed and mobile networks.
• Tech Mahindra was chosen as a strategic partner by a UK-based manufacturer to drive digital transformation by establishing a Shared Services Center.
• The company announced partnerships with several technology leaders, including ServiceNow, Red Hat, and Cisco, to enhance its service offerings and capabilities.

Focus on AI and Innovation

Tech Mahindra has made significant strides in artificial intelligence (AI) capabilities:

• The company's AI Consulting Practice enables clients to validate ROI and prioritize use cases efficiently.
• Tech Mahindra has developed a portfolio of 200+ enterprise-grade AI agents across various industry segments.
• The company has filed a patent for VerifAI, which ensures data validation and observation as it enters the agentic pipeline.
• Over 77,000 employees have been trained in AI and Gen AI, with many receiving advanced training and certifications.

Conclusion

Tech Mahindra's Q1 results demonstrate the company's ability to drive growth and improve profitability in a challenging business environment. With a strong deal pipeline, focus on innovation, and strategic partnerships, Tech Mahindra is well-positioned to capitalize on the growing demand for digital transformation services across industries.