Tech Mahindra reported an 8.2% quarter-on-quarter rise in consolidated net profit to ₹1,586 crore in the September quarter, compared with ₹1,465 crore in the previous quarter. The CNBC-TV18 poll had estimated net profit to rise 7.5% to ₹1,576 crore.
Revenue in dollar terms rose 2% quarter-on-quarter to $1,693 million, from $1,660 million in Q1FY27. The street had estimated dollar revenue to increase 1.3% to $1,682 million, while constant-currency revenue growth was pegged at 1.4%.
The company’s earnings before interest and tax (EBIT) rose 5.4% quarter-on-quarter and 40.5% year-on-year to ₹2,387 crore in Q2FY27. EBIT margin expanded to 14.8% from 14.4% in the previous quarter, moving closer to its target of 15% by the end of FY27.
Tech Mahindra’s return on capital employed (ROCE) stood at 31.2% in Q2FY27, according to its investor presentation. The company’s FY27 ROCE guidance could not be independently confirmed from the available results documents.
Tech Mahindra Managing Director and Chief Executive Officer Mohit Joshi described the performance as an “extremely strong quarter”. The company’s total contract value (TCV) of new deal wins stood at $1.023 billion, with Joshi saying the wins were “broad-based across verticals and geographies”.
The banking, financial services and insurance (BFSI) business grew 4.6% during the quarter, while healthcare grew 6.6%. Joshi said the company was focused on “strengthening insurance capabilities” and expanding its share in existing accounts.
The company’s performance was supported by the continued ramp-up of the large Orange telecom deal, which was won in the fourth quarter of FY26. The consolidation of Avant Techno Solutions also contributed around two months of revenue during the quarter.
However, growth was partly offset by the normalisation of a one-time manufacturing benefit of 1% to 1.3% in the June quarter.
Tech Mahindra is also building its artificial intelligence (AI) solutions portfolio. Joshi said the company’s AI collections solution was already delivering “approximately 40% efficiency gains in arrears management”. Its first solution under the Agentic Process Transformation Centre of Excellence has also been deployed at Target Group.
The company also declared an interim dividend of ₹15 per share and approved a 1:1 bonus issue, subject to shareholder and other applicable approvals.
Tech Mahindra also announced an AI-driven Security Service Edge offering with Cisco to help enterprises manage and secure AI agents as they scale. It has also partnered with SpaceX AI to combine industry expertise, engineering capabilities and AI innovation to transform software development. Separately, its partnership with the IHAP Quantum Technology Foundation will focus on developing middleware for India’s indigenous 20-qubit trapped-ion quantum computer.
On the US visa issue, Joshi said Tech Mahindra was not among the companies called out by the US government. “We have always been very thorough and focused on visa compliance and regulations across the world,” he said, adding that H-1B visa holders account for “just about 1%” of the company’s overall workforce. He said the company’s US and global talent strategy focused on local hiring.
Joshi said the company did not share details of employees moving through the POM process, citing privacy and employee considerations.
Shares of Tech Mahindra ended 4.75% higher at ₹1,650 ahead of the results announcement on Thursday. The day’s gains pulled the stock into positive territory for the year. It has advanced over 13% over the last 12 months.
Also read: Polycab Q2 Results: Numbers beat estimates across parameters, margin contraction less than feared