Tech Mahindra beats expectations with 15.6% revenue growth, a 14.8% operating margin and more than $1bn in contract wins for a fourth consecutive quarter, while unveiling an interim dividend and 1:1 bonus issue.
Tech Mahindra delivered a stronger-than-expected second quarter, with revenue rising 15.6% from a year earlier to ₹16,180 crore and net profit increasing 32.7% to ₹1,586 crore, according to the company’s results announcement. The telecom and IT services group also reported constant-currency growth of 7.2% and said its operating margin improved to 14.8%, extending a run of quarterly margin gains.
The latest figures suggest the turnaround story remains intact. Tech Mahindra said it booked total contract value of $1.023 billion, marking the fourth straight quarter in which deal wins exceeded the $1 billion threshold. The company also highlighted that the quarter did not include any material one-off boost to earnings, implying that the improvement was driven by underlying execution rather than accounting gains.
Management sounded confident about the trajectory ahead. Chief financial officer Rohit Anand said the margin improvement reflected stronger volumes and project cost savings, even after allowing for wage increases, while investment in artificial intelligence continued. Chief executive Mohit Joshi said almost all large deals now include AI integration, underscoring the company’s effort to position itself around higher-value work as it pushes towards its reiterated 15% EBIT margin target for the full 2027 financial year.
The results also came with shareholder-friendly announcements. Tech Mahindra declared an interim dividend of ₹15 a share and recommended a 1:1 bonus issue, a combination that will be welcomed by long-term investors. LiveMint reported that the package could benefit about 700,000 shareholders, while market reaction on Thursday was already positive, with the stock ending the session up nearly 4.75% at ₹1,650.
Brokerage views had been mixed ahead of the numbers, but several firms had already turned more constructive on the company’s improving execution. Motilal Oswal had reiterated a buy rating with a target price of ₹1,900, while HDFC Securities and PL Research also held bullish views. More cautious houses continued to flag that Tech Mahindra still needs to prove it can sustain growth and margin gains consistently, especially against faster-growing peers, even as the latest quarter strengthened the case that its recovery remains on track.
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