Tech Mahindra gains after Q2 PAT jumps 32.7% YoY to Rs 1,586 crore

Tech Mahindra advanced 7.03% to Rs 1,764.60 after the company reported a 32.7% rise in consolidated net profit to Rs 1,585.6 crore in Q2 FY27 as compared with Rs 1,194.5 crore in Q2 FY26.

Revenue from operations increased 15.6% to Rs 16,180.2 crore in Q2 FY27 as compared with Rs 13,994.9 crore in Q2 FY26.

Sequentially, net profit increased 8.2% from Rs 1,465.1 crore in Q1 FY27, while revenue rose 3.0% from Rs 15,711.9 crore.

EBIT increased 40.5% to Rs 2,387 crore in Q2 FY27 as compared with Rs 1,698.9 crore in Q2 FY26. EBIT margin improved to 14.8% from 12.1%, expanding around 260 basis points year-on-year.

Profit before tax increased 12.4% to Rs 2,296.1 crore in Q2 FY27 as compared with Rs 2,041.9 crore in Q2 FY26.

In dollar terms, revenue stood at US$1,693 million, up 6.8% year-on-year. In constant currency terms, revenue increased 7.2% year-on-year.

PAT margin stood at 9.8%, up 130 basis points year-on-year. Diluted earnings per share stood at Rs 17.84.

Operationally, total headcount stood at 152,206, while LTM IT attrition was 11.7%. Days sales outstanding stood at 88 days, and free cash flow was US$135 million. The company's new deal wins (TCV) stood at US$1,023 million in Q2 FY27, up 25.4% year-on-year.

Mohit Joshi, CEO and managing director of Tech Mahindra, said, ?Deal wins exceeding $1+ billion in each of the last four quarters reflect the strength of our customer relationships and the trust we have built. With 7.2% year-on-year constant currency growth, we continue to sustain business momentum.?

The company's board recommended a bonus issue of equity shares in the ratio of 1:1 and declared an interim dividend of Rs 15 per equity share of face value Rs 5 each.

Tech Mahindra is a leading global provider of technology consulting and digital solutions, serving enterprises across industries with a strong presence in telecom, enterprise, and digital transformation services.

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