Tech Mahindra Q2 profit rises 32.7%; board recommends 1:1 bonus shares
The company reports INR 16,180 crore revenue and a 14.8% operating margin for the September quarter. New deal wins totalled USD 1.023 billion; an interim dividend of INR 15 per share was declared.
Tech Mahindra reported consolidated profit after tax of INR 1,586 crore for the quarter ended September 30, 2026, up 32.7% from a year earlier. Revenue increased 15.6% to INR 16,180 crore, according to its October 15 results announcement.
Earnings before interest and tax rose 40.5% year on year to INR 2,387 crore. The company reported an operating margin of 14.8%, an improvement of approximately 260 basis points from a year earlier and 40 basis points from the preceding quarter.
Sequentially, rupee revenue increased 3% and operating profit rose 5.4%. Dollar revenue was USD 1.693 billion, up 6.8% year on year in reported terms and 7.2% in constant currency. The difference between rupee and dollar growth makes the reporting basis relevant when comparing the figures.
New deal wins had a total contract value of USD 1.023 billion, up 25.4% year on year. Contract value covers the business secured under those agreements and is distinct from revenue recognised during the quarter.
The company also reported free cash flow of USD 135 million, days sales outstanding of 88 days and cash and cash equivalents of INR 7,330 crore at the quarter-end. Total headcount stood at 152,206, with trailing 12-month IT attrition of 11.7%.
The board recommended a bonus share issue in the ratio of 1:1. This is a recommendation, rather than an announcement that the bonus shares have already been issued. An interim dividend of INR 15 per share was also declared.
The results provide an update on Tech Mahindra's revenue growth, profitability and order intake. The release's separate list of AI partnerships does not quantify how much quarterly revenue or profit came from those initiatives.
