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.

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.