IT services major Tech Mahindra on Thursday reported a 28% year-on-year increase in consolidated net profit to Rs 1,465 crore in Q1 of FY27 on strong deal momentum.
The Pune-headquartered IT services firm posted a 17.7% year-on-year increase in its consolidated revenue to Rs 15,712 crore in the quarter, while sequentially it increased 4.2%.
EBIT margin expanded to 14.4% during the quarter, up around 330 basis points year-on-year and about 60 basis points sequentially.
Deal momentum remained strong during the quarter, with Tech Mahindra reporting new deal wins worth $1.08 billion, up 33.3% year-on-year. The company's last twelve-month deal wins stood at $4.06 billion, an increase of 37.5% year-on-year.
Mohit Joshi, CEO and Managing Director of Tech Mahindra, said, “YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $ 1 billion dollars underscores the resilience of our business and the growing relevance of our offerings. Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY.”
During the press conference, Joshi said the company had entered the third year of its transformation journey with a stronger focus on growth. “We had said that in the third year of the transformation that we would pivot strongly to growth and as the numbers today show, we have done just that,” he said, adding that every business vertical delivered year-on-year growth during the quarter.
He said the company continued to see healthy demand across payments modernisation, wealth platforms, regulatory compliance and AI-led transformation in the BFSI segment, while manufacturing growth was driven by aerospace, industrial and process manufacturing. Healthcare also continued to benefit from vendor consolidation and AI-led discretionary spending.
The company said it is continuing to invest in AI-led capabilities through its TechM Helix platform, agentic AI offerings and ecosystem partnerships. It also announced the acquisition of Canada-based Avant Techno Solutions during the quarter to strengthen its payments modernisation and wealth platform capabilities within the BFSI vertical.
In terms of workforce metrics, Tech Mahindra's total headcount stood at 146,760 at the end of the June quarter, down by 863 employees sequentially. Last twelve-month IT attrition stood at 11.8%.