Did Tech Mahindra's Q2 PAT Decline by 4.5% to Rs 1,195 Crore and Announce Rs 15 Dividend?
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Synopsis
In the latest financial update, Tech Mahindra reports a decline in net profit for Q2 FY26, despite a rise in revenue. With an interim dividend announcement and new AI initiatives, the company remains focused on growth and shareholder value. Explore the details of their performance and future strategies.
Key Takeaways
- Net profit fell to Rs 1,195 crore, down 4.5% YoY.
- Revenue rose by 5.1% to Rs 13,995 crore.
- Declared interim dividend of Rs 15 per share.
- Operating profit increased by 33% YoY to Rs 1,699 crore.
- Secured new deals worth $816 million.
Mumbai, Oct 13 (NationPress) The consolidated net profit of Tech Mahindra for the second quarter of the current fiscal year (Q2 FY26) has decreased by 4.5 percent year-on-year (YoY) to Rs 1,195 crore, as per an exchange filing released on Tuesday.
In the same quarter last year (Q2 FY25), the IT firm had reported a net profit of Rs 1,250 crore.
Despite this decline in profits, Tech Mahindra observed a 5.1 percent YoY increase in its revenue from operations, amounting to Rs 13,995 crore, up from Rs 13,351 crore, largely driven by robust growth in its banking and manufacturing sectors.
This performance occurred notwithstanding ongoing concerns regarding changes in US tariffs and a tightening visa policy.
On a sequential basis, the company's net profit and revenue showed growth of 4.7 percent and 4.8 percent, respectively. In the preceding quarter, the net profit and revenue from operations were Rs 1,140 crore and Rs 13,351 crore, respectively.
Furthermore, Tech Mahindra's operating profit (EBIT) surged by 33 percent YoY to Rs 1,699 crore.
During this quarter, the company secured new deal wins with a total contract value (TCV) of $816 million.
The board has also declared an interim dividend of Rs 15 per share, with October 21 designated as the record date.
"This quarter, we showcased broad-based growth, demonstrating the effectiveness of our strategy and execution. We introduced TechM Orion, our next-gen AI platform, along with the TechM Orion Marketplace, aimed at accelerating autonomous transformation for enterprises. Our recognition by industry analysts underscores our leadership in driving next-gen AI advancements," stated Mohit Joshi, CEO and Managing Director of Tech Mahindra.
Additionally, during this period, Tech Mahindra launched TechM Orion, an innovative agentic AI platform, designed to enable global enterprises to deploy and manage agentic AI solutions more swiftly, whether in assisted or fully autonomous environments, while ensuring control and transparency throughout the AI lifecycle.
"This quarter signifies the eighth consecutive period of margin expansion, fueled by operational efficiency and disciplined execution. Our deal TCV has risen by 57 percent YoY on an LTM basis, bolstered by robust deal conversions. The Board's approval of a Rs 15 per share dividend reflects our ongoing commitment to enhancing shareholder value," remarked Rohit Anand, CFO of Tech Mahindra.
Point of View
It is crucial to recognize the mixed results from Tech Mahindra's latest financial report. While the dip in net profit raises concerns, the growth in revenue and the introduction of innovative AI solutions indicate a strategic approach to navigating current market challenges. Such developments warrant close attention from analysts and investors alike, as the company positions itself for future growth.
NationPress
14/10/2025
Frequently Asked Questions
What was Tech Mahindra's net profit for Q2 FY26?
Tech Mahindra's net profit for Q2 FY26 was Rs 1,195 crore, a 4.5 percent decline compared to the previous year.
How much did Tech Mahindra's revenue increase?
Tech Mahindra reported a 5.1 percent increase in revenue from operations, totaling Rs 13,995 crore.
When is the record date for the declared dividend?
The record date for the declared interim dividend of Rs 15 per share is set for October 21.
What are Tech Mahindra's recent AI initiatives?
Tech Mahindra launched TechM Orion, a next-gen AI platform, aimed at accelerating autonomous transformation for enterprises.
How much was the total contract value of new deals secured?
Tech Mahindra secured new deal wins worth a total contract value (TCV) of $816 million during the quarter.
