Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has announced its financial results for the first quarter, ending June 30. The company reported strong growth in profitability and significant new deal wins, demonstrating resilience in a challenging global economic environment.

Financial Highlights

New Deal Wins and Business Performance

Tech Mahindra secured new deals with a Total Contract Value (TCV) of $809.00 million during the quarter, representing a significant 51% YoY growth. The company's deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies.

Operational Metrics

Segment Performance

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

1. Tech Mahindra was selected as a key 'growth partner' by a leading US-based consumer wireless operator for its Customer Operations transformation.

2. The company secured a contract with a Railroad company in the Americas region for support and development of applications across multiple corporate functions.

3. A multi-year strategic engagement was won with a leading global fashion apparel brand for digital and data transformation services.

4. Tech Mahindra was chosen to consolidate, modernize, and digitize IT systems for a leading global insurance and asset management company's Japanese subsidiary.

5. The company announced partnerships with several technology leaders, including ServiceNow, Red Hat, and Cisco, to enhance its service offerings and capabilities.

Focus on Artificial Intelligence

Tech Mahindra has made significant strides in AI integration:

• Developed a portfolio of 200+ enterprise-grade AI agents across industry segments
• Filed a patent for VerifAI, ensuring data validation in agentic pipelines
• Trained over 77,000 employees in AI and Gen AI

Conclusion

Tech Mahindra's Q1 results demonstrate the company's ability to drive growth and profitability amid global economic uncertainties. With a strong focus on AI-driven solutions and strategic partnerships, the company is well-positioned to capitalize on emerging opportunities in the digital transformation landscape.

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 but falling short of market expectations.

Financial Highlights

• Revenue: Tech Mahindra reported a revenue of ₹13,351.00 crores, representing a 2.7% year-over-year (YoY) increase.
• Net Profit: Consolidated Profit After Tax (PAT) stood at ₹1,141.00 crores, up 34% YoY, but below Street estimates of ₹1,211.00 crores.
• EBIT (Earnings Before Interest and Taxes): The company's EBIT surged to ₹1,477.00 crores, marking a significant 34% YoY growth.
• EBIT Margin: The EBIT margin improved substantially, expanding by 260 basis points YoY to reach 11.06%.
• Earnings Per Share (EPS): Diluted EPS for the quarter was ₹12.86.

Operational Performance

Tech Mahindra continued to demonstrate strong operational efficiency and business growth:

• New Deal Wins: The company secured new deals with a Total Contract Value (TCV) of $809 million, representing a robust 51% YoY growth.
• Client Metrics: The number of $50 million+ clients increased to 26, up by 2 compared to the previous year.
• Headcount: Total headcount reached 148,517, with a net addition of 897 employees YoY.
• Attrition: The attrition rate increased to 12.8% from 11.8% in the previous quarter.

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 pursuing strategic initiatives to enhance its capabilities and market presence:

• The company launched a new managed services offering for Cisco Multicloud Defense, providing enterprises with robust cloud security solutions.
• Tech Mahindra was named a Red Hat Premier Partner globally, gaining access to technical resources and joint go-to-market opportunities.
• The company announced partnerships with ServiceNow, CrateDB, and KOGO AI to deliver next-generation solutions in areas such as broadband, data management, and enterprise AI.

Outlook

Despite missing Street estimates, Tech Mahindra's strong deal pipeline, improved profitability metrics, and strategic partnerships position it well for continued growth. The company's focus on AI-driven solutions and digital transformation services is expected to drive further business opportunities across various industry verticals.

As Tech Mahindra continues to expand its capabilities and client base, investors and industry observers will be watching closely to see how the company capitalizes on the growing demand for digital and AI-enabled services in the global market, while addressing any concerns related to the slight underperformance against market expectations and the increase in attrition rate.