Key Takeaways
Tech Mahindra Q1 FY'27 Results LIVE
- Net profit rose 28% YoY to Rs 1,465 crore, with revenue climbing 18% to Rs 15,712 crore
- Deal wins topped $1 billion for the third consecutive quarter, reaching $1,078 million TCV
- EBIT surged 53% YoY while headcount fell by 863, signaling margin-focused restructuring
Tech Mahindra posted Rs 1,465 crore in net profit for Q1 FY27, a 28% year-on-year increase from Rs 1,140.6 crore in the same quarter last year. Revenue from operations reached Rs 15,712 crore, up 18% YoY, marking the strongest quarterly performance since CEO Mohit Joshi took charge in December 2023.
The numbers confirm that Joshi's turnaround strategy is working. Sequentially, net profit grew 8% from Rs 1,353.8 crore in Q4 FY26. More telling: EBIT jumped 53% YoY, a sign that cost discipline is translating into actual margin expansion rather than just revenue padding.
Deal pipeline stays above $1 billion
New deal wins reached $1,078 million in total contract value, up 33% YoY. This marks the third consecutive quarter where TCV crossed the billion-dollar mark. In constant currency terms, revenue grew 6.6% YoY to $1,660 million.
The company's $50 million-plus client base expanded by seven accounts, with all verticals delivering YoY growth. This broad-based expansion contrasts sharply with FY24, when the communications vertical dragged down overall performance.
“Three consecutive quarters of deal wins exceeding $1 billion dollars underscores the resilience of its business and the growing relevance of its offerings.”
— Mohit Joshi, CEO and Managing Director, Tech Mahindra
Headcount drops, attrition stabilizes
Tech Mahindra reduced headcount by 863 employees during the quarter, bringing the total to 1.47 lakh. The LTM IT attrition rate stood at 11.8%, below the industry average for Indian IT services firms. Cash and cash equivalents were reported at Rs 9,695 crore, with free cash flow of $167 million.
CFO Rohit Anand attributed the results to disciplined working capital management. He noted investments in "differentiated capabilities, domain-specific and sovereign AI, platforms, and talent" while maintaining focus on operational rigor.
Segment breakdown: IT and BPS both grow 18%
The IT business contributed Rs 13,245 crore in Q1 revenue, an 18% YoY increase. The BPS segment matched that growth rate, posting Rs 2,466.9 crore. Neither segment lagged, a departure from quarters where communications dragged while enterprise held steady.
The balanced growth suggests Tech Mahindra is no longer as dependent on its telecom-heavy legacy business. The company has historically derived a larger share of revenue from communications clients than peers like Infosys or TCS, making it more vulnerable to 5G spending slowdowns.
Stock reaction and valuation
Tech Mahindra shares closed at Rs 1,510 on the NSE, up nearly 1% ahead of the earnings announcement. The stock gained 6% over the past week and 5% over the past month. Still, it remains down roughly 6% in 2026 YTD, reflecting investor caution about the durability of the turnaround.
The market cap stands above Rs 1.48 lakh crore. Over three years, the stock has returned 23%; over five years, 37%. The one-year return remains negative at 6%, a reminder that the recovery is recent and not yet fully priced in.
Logicity's Take
Tech Mahindra's Q1 validates what the management has been promising: margin improvement without sacrificing growth. The 53% EBIT jump is the real headline here, not the revenue figure. For enterprise IT buyers evaluating vendors, this signals that Tech Mahindra is no longer in crisis mode. That said, the communications vertical remains a watch item. If 5G deployments accelerate in the US and Europe, Tech Mahindra benefits disproportionately. If they stall, the turnaround faces headwinds that TCS and Infosys don't.
Frequently Asked Questions
What was Tech Mahindra's net profit in Q1 FY27?
Tech Mahindra reported a consolidated net profit of Rs 1,465 crore for Q1 FY27, representing a 28% increase from Rs 1,140.6 crore in the same quarter last year.
How much did Tech Mahindra's revenue grow in Q1 FY27?
Revenue from operations grew 18% YoY to Rs 15,712 crore. In constant currency terms, revenue increased 6.6% YoY to $1,660 million.
What is Tech Mahindra's deal pipeline status?
New deal wins TCV rose 33% YoY to $1,078 million, marking the third consecutive quarter with deal wins exceeding $1 billion.
What is Tech Mahindra's current employee count and attrition rate?
The company has 1.47 lakh employees after reducing headcount by 863 during the quarter. LTM IT attrition stands at 11.8%.
How has Tech Mahindra stock performed in 2026?
The stock is down approximately 6% YTD in 2026, though it has gained over 23% over three years and 37% over five years.
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Source: Tech-Economic Times / ET
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
