Tech Mahindra kicked off FY26 on a strong note, reporting a 34% year-on-year jump in net profit for the April–June quarter. The IT services major posted a consolidated profit of Rs 1,141 crore, compared to Rs 852 crore in the same quarter last year.
A sharp control over expenses coupled with modest revenue growth helped lift the bottom line.
While consolidated revenue grew by 3% YoY to Rs 13,351 crore, the company managed to slightly reduce its total expenditure, which stood at Rs 11,952 crore. This financial discipline provided a solid boost to profits.
Cost Efficiency Pays Off
One of the key highlights of the Q1 performance was Tech Mahindra’s tight control over costs, which remained flat even as business expanded. The company has focused on operational efficiency, which has translated into better profit margins.
“We have seen strong traction in deal wins and are committed to maintaining financial discipline,” said Tech Mahindra CEO Mohit Joshi.
Also Read: Blackstone Targets India’s Infrastructure and Energy Sectors, Begins Hiring Senior Talent
Deal Wins on the Rise
Tech Mahindra’s net new bookings rose to $809 million, up from $798 million in the previous quarter and significantly higher than $534 million a year ago. This marks a 44% increase in deal wins on a last twelve months basis, showing strong demand momentum.
The company has attributed this to client confidence and growing digital transformation needs.
Americas Revenue Sees Dip
While the overall numbers were strong, the Americas region, which contributes nearly half of the company’s revenue, saw a 5.9% decline YoY. This softness was offset by better performance in other markets and a steady pipeline of new deals.
