Tech Mahindra Ltd. delivered on its key financials in the fiscal second quarter, aided by strength in its banking and manufacturing verticals, even as impact of US tariffs loomed.
Consolidated revenue of the Mahindra Group company rose 4.8% over the previous three months to ₹13,995 crore in quarter ended 30 September 2025, according to an exchange filing on Tuesday. That compares with the ₹13,777.50-crore estimate of analysts tracked by Bloomberg.
Tech Mahindra Q2 Results: Key Highlights (QoQ)
- Revenue up 4.8% at ₹13,995 crore (Estimate: ₹13,777.50 crore)
- EBIT up 15% at ₹1,699.30 crore (Estimate: ₹1,609 crore)
- EBIT margin up 100 basis points at 12.1% (Estimate: 11.67%)
- Net profit up 5% at ₹1,194.50 crore (Estimate: 1,285 crore)
- Free cash flow of $237 million, or 1.75 times of profit after tax
One basis point is one-hundredth of a percentage point.
Separately, the company has announced an interim dividend of ₹15/share.
In dollar terms, Tech Mahindra's revenue rose 1.4% sequentially to $1.586 billion. It was up 1.6% in constant currency.
“We delivered broad-based growth this quarter, reflecting the strength of our strategy and execution,” Mohit Joshi, chief executive officer at the Mumbai-based IT services company, said in a statement accompanying the earning.
Tech Mahindra Q2 Results: Other Highlights
- Total contract value of new deal wins at $816 million.
- Total headcount down 1,559 year-on-year at 1,52,714.
- Attrition rate at 12.8% on a trailing 12-month basis.
- Interim dividend of ₹15/share announced.
“This quarter marks the eighth consecutive period of margin expansion, driven by operational efficiency and disciplined execution,” Rohit Anand, chief financial officer at Tech Mahindra, said in the statement. “Our deal TCV is up 57% year-on-year…supported by strong deal conversions.”
ALSO READ | HCLTech delivers in Q2 FY26 on surge in deal wins
{{/usCountry}}ALSO READ | HCLTech delivers in Q2 FY26 on surge in deal wins
{{/usCountry}}Tech Mahindra, India's fifth largest IT firm by revenue, was lagging its peers for several years and has been trying to make a turnaround under CEO Joshi, who was appointed in late 2023.
But India's $283-billion IT sector has been dealing with cautious client spending amid economic uncertainties, particularly in North America, its largest market. A proposed 25% US tax on outsourcing payments and an H-1B visa crackdown are also expected to upend the industry's playbook.
Tech Mahindra's revenue from the Americas, which accounts for nearly half of its overall revenue, fell 2.7%, while that from Europe grew 5.5%.
Communication is Tech Mahindra's largest business with a client list that includes U.S.-based telecom majors AT&T and Verizon, and revenue from that fell 2.2%. However, revenue from manufacturing grew 5.2%, and the banking, financial services and insurance vertical grew by 6.2%.
On Tuesday, Tech Mahindra shares rose 1.19% to ₹1468.15 apiece on the BSE even as the benchmark Sensex ended the day 0.36% lower at 82,029.98 points. The quarterly results were declared after market hours.