Tech Mahindra posts $1.66bn revenue as deals top $1bn

Tech Mahindra reported first-quarter revenue of USD $1.66 billion and new deal wins of USD $1.078 billion, alongside year-on-year growth in earnings and profit.

EBIT rose to USD $238 million, up 38.6% from a year earlier, while profit after tax reached USD $154 million, up 16.2%. Revenue increased 6.1% year on year in reported terms and 6.6% in constant currency.

In rupee terms, quarterly revenue stood at INR 15,712 crore, up 17.7% from a year earlier, while EBIT rose 53.3% to INR 2,264 crore. Profit after tax increased 28.4% to INR 1,465 crore.

The figures extend a recent run of large contract bookings, with total contract value for new deals rising 33.3% year on year. This was the third consecutive quarter in which deal wins exceeded USD $1 billion.

Mohit Joshi, Chief Executive Officer and Managing Director of Tech Mahindra, linked the results to both client demand and contract flow.

"YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $1 billion 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," said Mohit Joshi, Chief Executive Officer and Managing Director of Tech Mahindra.

Growth was broad-based across markets and geographies. EBIT margin reached 14.4%, up about 60 basis points from the previous quarter and around 330 basis points from a year earlier.

Free cash flow for the quarter came in at USD $167 million. Days' sales outstanding stood at 84 days, while cash and cash equivalents at the end of the period were INR 9,695 crore.

Headcount was 146,760 at the end of the quarter, down by 863 from the previous quarter. Last-12-month IT attrition was 11.8%.

Deals and partnerships

Alongside the earnings figures, Tech Mahindra highlighted a series of client wins and commercial moves across payments, healthcare, aerospace, telecoms, industrials and autonomous driving.

Among the more prominent transactions was the acquisition of Avant Techno Solutions, a Canada-based firm focused on payments modernisation and wealth platforms. The purchase expands Tech Mahindra's presence in banking, financial services and insurance.

It also expanded its work with Telefónica Germany on a private cloud platform and announced a partnership with Perplexity to add AI-based tools across its sales organisation. Other alliances disclosed during the quarter included agreements with Microsoft, Cisco, UKG, Kitsa, StackGen and Workday.

Several of the quarter's contract wins were concentrated in long-term managed services and transformation work. They included mandates from a US regional health system, a global aerospace and defence company, a New Zealand telecom operator, a telecoms group in Africa and an American autonomous driving technology company.

Finance view

Rohit Anand, Chief Financial Officer of Tech Mahindra, said the quarter reflected both operating discipline and demand conditions.

"We delivered a strong Q1 performance with broad-based growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum. We remain committed to building a future-ready organisation through continued investments in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent-while maintaining a clear focus on growth and operational rigor," said Rohit Anand, Chief Financial Officer of Tech Mahindra.

Tech Mahindra is part of the Mahindra Group and operates across 90 countries. It provides IT, consulting, engineering, network and business process services to large corporate customers.

Beyond its financial performance, the group pointed to external rankings during the quarter, including being named by TIME among the World's Most Sustainable Companies and ranked first among Indian companies on that list. It also said it was listed as a Top 15 Sourcing Standout across global regions in the ISG Index, based on annual contract value won over the last 12 months.

The latest figures suggest the company is maintaining momentum as investors continue to watch margins, deal conversion and growth across major outsourcing groups. New bookings above the USD $1 billion mark and higher operating profit are likely to be seen as signs of firmer demand and tighter execution in the opening quarter of the financial year.