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Tech Mahindra has reported a strong start to the financial year 2025-26 with a consolidated net profit surging by 34% YoY in the first quarter (Q1 FY26). The company presents a nuanced picture. The sequential decline in revenue indicates ongoing macroeconomic headwinds impacting client spending.
| Metric | In crores | In Millions | YoY change | QoQChange |
| Revenue | 13,351 | 1,564 | +2.7% | -0.2% |
| Net Profit (PAT) | 1,141 | 133 | +34% | -2.2% |
| EBIT | 1,477 | 172 | +34% | -20.9% |
Operational performance
Tech Mahindra’s operational performance in Q1 FY26 showcased a strategic recalibration in response to evolving market demands. Within its core businesses, the IT Services segment emerged as the dominant revenue driver, contributing a substantial 84.4% of the total revenue by posting Rs. 11,263.7 crores. This segment recorded a 2.8% year-on-year growth, though it experienced a slight sequential decline of 0.6%, with its EBIT margin standing at 18.4%. Conversely, the Business Process Services (BPS) segment generated Rs. 2,087.5 crores in revenue. While it saw a 1.9% year-on-year decline, it managed a 1.5% sequential growth, achieving an EBIT margin of 16.1%.
Future outlook
While Tech Mahindra’s Q1 FY26 results present a strong profit growth and margin expansion were seen positively, concerns lingered regarding the revenue growth trajectory, particularly the sequential decline. The company’s strong deal wins provided a silver lining, indicating a healthy pipeline for future growth. However, the ongoing global economic uncertainties and client caution are expected to keep revenue growth subdued in the immediate future.