Tech Mahindra’s Net Profit Up 16%; Shares Trade 2.50% Lower

Mumbai, April 22: Tech Mahindra on Wednesday posted consolidated net profit (PAT attributable to owners of the company) of ₹1,353.80 crore (₹13,538 million) for Q4 FY26, up 16.1% year-on-year from ₹1,166.70 crore (₹11,667 million) in Q4 FY25 — the comparable year-ago quarter. Profit after tax increased 20.7% sequentially from ₹1,122 crore in Q3 FY26. The increase was mainly attributed to operating leverage, favourable revenue mix and an acceleration in the company’s underlying margin expansion narrative.

Quarterly revenues

Revenue from operations for the quarter ended March 31, 2026, totalled ₹15,076.10 crore (₹1,50,761 million), increasing 12.6% year-on-year from ₹13,384 crore (₹1,33,840 million) reported in Q4 FY25, and up 4.7% sequentially from ₹1,43,932 million reported in Q3 FY26. Quarterly revenue in US dollars was USD 1,625 million – increasing 4.9% year-on-year and 0.9% quarter-on-quarter in reported terms and up 2.4% YoY in constant currency. The IT Business grew 1.0% QoQ while the BPS Business rose 0.5% QoQ. Communications was the largest vertical, accounting for 33.4% of the overall revenue mix.

EBIT

Earnings Before Interest and Tax (EBIT) increased to USD 223 million in Q4 FY26 from USD 162 million a year ago, up 36.3% year-on-year and 5.5% quarter-on-quarter. EBIT margin expanded by approximately 330 basis points year-on-year and approximately 70 basis points sequentially to 13.8%, the highest in recent years. In rupee terms, EBIT increased by 48.3% YoY and 10.2% QoQ to ₹2,084 crore.

Dividend

Tech Mahindra’s board recommended a final dividend of ₹36/share (face value ₹5 each), payable on Equity Shares, subject to shareholders’ approval at the 39th Annual General Meeting to be held on July 17, 2026. This is in addition to the interim dividend of ₹15/share paid in November last year and takes the total dividend payout for FY26 to ₹51/share — the highest dividend ever declared by Tech Mahindra and up over 13% from last year. The record date for entitlement to the final dividend is Friday, July 03, 2026 and will be paid on August 14, 2026.

FY26 Results

Consolidated revenue from operations for FY26 increased to ₹56,815 crore (USD 6,385 million), growing 7.2% in rupee terms and 1.9% in US dollar terms year-on-year. In constant currency terms, the revenue grew by 0.6% YoY. Gross profit for the year was USD 1,899 million, up 11% from FY25. Annual EBIT grew 31.4% to USD 797 million, while EBIT margin improved 290 basis points to 12.6%. EBIT for the full-year in rupee terms stood at ₹7,152 crore, up 39.2% over FY25 – highlighting how well Tech Mahindra has been able to convert its revenue rebound into profit growth. Net Profit for the year was ₹4,811 crore (USD 537 million), up 13.2% in rupee terms and 7% in dollar terms over FY25. Diluted earnings per share for the year stood at ₹54.19 compared to ₹47.91 in FY25. Free cash flow for FY26 was USD 616 million, or 115% of PAT.

News Deals

FY26 new deal wins reached USD 3,794 million in total contract value (TCV), the highest in five years, up 41.6% year-on-year. The increase in new deals reflects significantly improved client confidence in Tech Mahindra’s ability to deliver on its transformation promise. At the end of FY26, total employee count stood at 147,623 employees with IT attrition at 12.1% LTM.

Order Book 

The live order book when last checked had extreme sell-side skew. Quantity on the sell side was 73.50% of the total order quantity while only 26.50% buy side. In absolute terms, there were 6,62,197 shares on the ask side versus 2,38,755 shares on the bid side of the order book. The best bid was ₹1,458.70 (401 shares) while the best ask stood at ₹1,459.00 (447 shares) — a spread of ₹0.30 between the two. Following bid levels are ₹1,458.50 (890 shares), ₹1,458.40 (23 shares), ₹1,458.30 (75 shares) and ₹1,458.20 (114 shares) while asks thereafter are ₹1,459.20 (48 shares), ₹1,459.30 (19 shares), ₹1,459.40 (255 shares) and ₹1,459.50 (140 shares). Take note of how order quantity skews heavily to the sell side of the order book. This sell-side overhang corroborates with Tech Mahindra’s result day weakness, indicating elevated near-term supply.

Result Day Trade

Shares of Tech Mahindra traded with volatile sentiment on result day Wednesday. Tech Mahindra opened closer to ₹1,441 and went on to reach a session high near ₹1,493 in the afternoon as the strong earnings beat and record dividend announcement triggered buying. However, most of those gains were erased in the last hour of trade with some profit-taking bringing the stock lower. As of last trade, Tech Mahindra was trading at ₹1,463.30 down ₹37.50 or 2.50% from the previous day’s close at ₹1,500.80 Tuesday, April 21. Shares of Tech Mahindra touched a low of ₹1,401 around noon before the afternoon recovery towards ₹1,493.

TECHM Week In Stock Market

Stepping back to look at TECHM’s last five days of price action, the stock was in a measured uptrend leading up to results day. Tech Mahindra traded near ₹1,481 at the beginning of the week on April 15 before moving to around ₹1,487 on April 16. The stock then rallied sharply to around ₹1,511 on April 17 – the highest for the week – on positive pre-results trading and broader market strength. The stock retreated to around ₹1,496 on April 20 as some caution kicked in ahead of results. Tuesday’s closing price was around ₹1,500. Before declining on results on Wednesday, TECHM was up roughly 1.35% over the 5-day stretch, underperforming the Nifty 50 which moved 0.77% over the same period.

Source:

• https://www.nseindia.com/get-quote/equity/TECHM/Tech-Mahindra-Limited