Tech Mahindra shares rose as much as 7% after a 32.7% jump in quarterly profit, a ₹15 interim dividend and board approval for a 1:1 bonus issue.
Tech Mahindra shares jumped on Friday after the Indian technology services company reported stronger-than-expected quarterly results, lifted its dividend and approved a bonus issue, reinforcing hopes that the group’s turnaround is gathering pace.
The stock rose as much as 7% intraday on the Bombay Stock Exchange, even as the wider market traded lower. That made Tech Mahindra the strongest performer on the Nifty 50 for the day, while the Nifty IT index also advanced as investors bought into several large software names. Infosys and Wipro both climbed more than 3.6%, and Tata Consultancy Services gained about 3%.
According to Tech Mahindra’s results statement, net profit attributable to shareholders increased 32.7% year on year to ₹1,585.6 crore in the quarter, while revenue from operations rose 15.6% to ₹16,180.2 crore. Earnings before interest, tax, depreciation and amortisation increased 32.8% to ₹2,878.5 crore. The company also reported 7.2% year-on-year growth in constant currency terms, a measure that strips out the effect of exchange-rate swings.
The board declared an interim dividend of ₹15 per equity share, equal to 300% of face value, and approved a 1:1 bonus issue, subject to shareholder approval through a postal ballot. Mohit Joshi, Tech Mahindra’s chief executive, said the company had recorded deal wins of more than $1 billion in each of the past four quarters, describing that run as evidence of customer trust and business momentum. The company also said it was marking its 40th anniversary this quarter.
Broker commentary after the results was broadly constructive. Systematix Institutional Equities said Tech Mahindra had delivered a strong quarter, with revenue and margin performance beating expectations and bookings of $1.023 billion helping to reduce concentration risk. The brokerage said the company’s 15% EBIT margin target for FY27 looked achievable, with artificial intelligence-led productivity gains offering further upside. Nuvama Institutional Equities said four straight quarters of more than $1 billion in deal wins put Tech Mahindra in a strong position to outpace large-cap peers in FY27, while Dolat Capital said management remained confident in the core business but warned that margin expansion would depend on execution, pricing discipline and AI-led efficiencies.
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