Tech Mahindra's Q2 FY 2025-26 Quarterly Results

Result Summary

• Tech Mahindra Ltd reported a 3.4% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 1.4%.
• Its expenses for the quarter were up by 3.5% QoQ and 2.1% YoY.
• The net profit increased 6.5% QoQ and decreased 4.4% YoY.
• The earnings per share (EPS) of Tech Mahindra Ltd stood at 13.46 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Tech Mahindra Ltd is a prominent player in the IT services and consulting industry, known for providing a broad range of services including IT solutions, consultancy, and outsourcing services. The company primarily operates in the technology sector, focusing on telecommunications, media, and information technology services. It has established itself as a leader in digital transformation, leveraging technologies such as AI, blockchain, and cloud computing to deliver innovative solutions to its clients worldwide. Recently, Tech Mahindra has been involved in expanding its service offerings and improving its global delivery capabilities. However, specific recent developments or strategic initiatives undertaken by Tech Mahindra are not available in the provided data set.

Revenue

In Q2FY26, Tech Mahindra Ltd reported a total income of ₹14,034.90 crores, which reflects a quarter-over-quarter (QoQ) increase of 3.4% from Q1FY26, where the total income was ₹13,569.50 crores. When compared to the same quarter in the previous year (Q2FY25), where the total income was ₹13,834.72 crores, there is a year-over-year (YoY) increase of 1.4%. These figures indicate a consistent upward trend in revenue generation over both the quarterly and annual periods. This growth can be attributed to various factors, including increased demand for digital transformation services, expansion of client base, or enhanced service offerings, although further details are not specified in the data.

Profitability

During Q2FY26, Tech Mahindra Ltd's profit before tax stood at ₹1,662.10 crores, showing a QoQ increase of 2.8% from ₹1,617.60 crores in Q1FY26. However, there is a decline of 3.0% on a YoY basis from ₹1,712.88 crores recorded in Q2FY25. The taxation for this quarter amounted to ₹457.60 crores, witnessing a QoQ decrease of 6.5% and a marginal YoY increase of 0.4%. Consequently, the profit after tax for the quarter was ₹1,201.70 crores, marking a QoQ rise of 6.5% but a YoY decrease of 4.4% from Q2FY25's ₹1,257.48 crores. The earnings per share (EPS) for Q2FY26 was ₹13.46, showing a QoQ growth of 4.7%, although it declined by 4.5% compared to Q2FY25. These fluctuations in profitability metrics highlight variations in operational performance over the periods.

Operating Metrics

The total expenses for Tech Mahindra Ltd in Q2FY26 were reported at ₹12,372.80 crores, reflecting a QoQ rise of 3.5% from ₹11,951.90 crores in Q1FY26. On a YoY basis, total expenses increased by 2.1% compared to ₹12,121.84 crores in Q2FY25. These expenses include costs associated with delivering IT services, labor costs, and other operational expenditures. The company's financial metrics such as the profit before tax, tax obligations, and profit after tax indicate the operational efficiency and cost management strategies adopted by the company. Notably, the QoQ growth in profit after tax alongside a reduction in tax indicates effective financial management. Further analysis of operating ratios such as the P/E ratio, debt-to-equity ratio, or the current ratio is not available due to the absence of specific data in the provided financial set.