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Tech Mahindra Ltd. 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.
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.
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.
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.
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