Tech Mahindra Posts Robust Q1 Performance Amid Volatile Market Conditions

Tech Mahindra reported a 34% increase in Q1 net profit to Rs 1,140.6 crore, driven by growth in communications and financial services. Despite challenges in other sectors, the company secured new deals worth USD 809 million and aims for top-line growth above peer average by FY27.

Pune-based IT giant Tech Mahindra has reported an impressive 34% year-on-year boost in its consolidated net profit for the first quarter of 2025-26, reaching Rs 1,140.6 crore. The surge, largely driven by the communications and financial services verticals, underscores the company's resilience in a challenging market.

Despite a slight sequential dip in net profit and revenue, Tech Mahindra's strategic focus on communications, retail, and BFSI verticals drove positive results. However, discretionary cuts impacted revenue, with challenges prevailing in the automotive sector and manufacturing verticals witnessing declines.

Looking ahead, CEO Mohit Joshi expressed confidence in sustained growth, highlighting an ambitious target to outperform peers by FY27. The company secured new deals worth USD 809 million and noted a 4.7% increase in BFSI revenues, setting the stage for future growth in a dynamic environment.

(With inputs from agencies.)