Tech Mahindra has registered a 53.3% year-on-year growth in its earnings before interest and taxes (EBIT) for the first quarter ended June 30, 2026. The Pune-headquartered technology services provider posted an EBIT of Rs 2,264 crore for Q1 FY27, backed by a 33.3% annual increase in new deal wins, which touched USD 1.078 billion.
The company recorded a consolidated revenue of Rs 15,712 crore for the quarter, marking a 17.7% increase compared to the corresponding period last fiscal year, and a 4.2% growth sequentially. In US dollar terms, the revenue stood at USD 1,660 million, up 6.1% year-on-year in reported terms and 6.6% in constant currency terms. The profit after tax (PAT) grew 28.4% annually to reach Rs 1,465 crore, with the diluted earnings per share standing at Rs 16.50.
Tech Mahindra Q1 Results
Operational efficiencies helped the firm expand its profitability. The EBIT margin improved to 14.4%, reflecting a expansion of approximately 330 basis points year-on-year and 60 basis points quarter-on-quarter. The net profit margin also witnessed an expansion of 80 basis points over the past year to settle at 9.3%.
Cash generation remained steady, with the company reporting a free cash flow of USD 167 million for the three-month period, while its cash and cash equivalents stood at Rs 9,695 crore at the end of June.
The increase in large deal momentum contributed to the revenue pipeline. This marks the third consecutive quarter where the technology firm has secured fresh contract values exceeding the USD 1 billion threshold.
Company managed to scale its deep client accounts, adding seven new clients to its USD 50 million-plus bracket over the past year, while ensuring that all its vertical business segments registered positive annual growth.
"YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $1 billion dollars underscores the resilience of our business and the growing relevance of our offerings," Mohit Joshi, Chief Executive Officer and Managing Director at Tech Mahindra said.
"Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY."
IT Hiring Trends
Even as financial metrics showed improvement, the total workforce size experienced a marginal contraction. The total headcount stood at 146,760 at the end of the quarter, representing a sequential decline of 863 employees.
Meanwhile, the last twelve months (LTM) IT attrition rate was maintained at 11.8%. The company’s days of sales outstanding (DSO), which measures the average time taken to collect receivables, was recorded at 84 days.
Management indicated that the focus remains on execution discipline and specialized technology tracks to sustain this trajectory. The firm has been deploying capital towards internal training and specialized platforms to counter global macroeconomic headwinds that continue to impact discretionary enterprise spending.
"We delivered a strong Q1 performance with broad-based growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum," Rohit Anand, Chief Financial Officer at Tech Mahindra said.
"We remain committed to building a future-ready organization through continued investments in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent—while maintaining a clear focus on growth and operational rigor."
About Company
Tech Mahindra is an Indian multinational provider of digital services, information technology, and business process outsourcing services. Part of the Mahindra Group, the company is based in Pune and operates across multiple global markets, offering consulting, enterprise platform implementation, and network infrastructure solutions to clients across telecommunications, manufacturing, banking, and healthcare sectors.
