Tech Mahindra Q1 Earnings Report: What Drove the Net Profit Jump to Rs 851 Crore?

Tech Mahindra Q1 FY25 Earnings Report: Profit Surges by 29%

Tech Mahindra reported a significant jump in its Q1 FY25 net profit, reaching Rs 851.5 crore—a 29% increase quarter-on-quarter, primarily due to a low base. The consolidated revenue for the April-June quarter saw a 10% rise from the previous quarter, totaling Rs 13,005.5 crore.

The IT services giant’s fiscal first-quarter results aligned with market expectations. A Moneycontrol poll of 10 brokerages anticipated Tech Mahindra’s Q1 net profit to climb to Rs 861 crore, driven by the lower base effect. Revenue was projected to reach Rs 12,968 crore.

The company’s earnings growth this quarter can be attributed to portfolio shifts, volume growth, and effective cost management.

Tech Mahindra’s EBIT margin improved to 8.5%, up 110 basis points from the previous quarter’s 7.4%, surpassing Moneycontrol’s estimate of 8%.

The total contract value (TCV) for Q1 stood at $534 million, an increase from $500 million in the previous quarter.

Mohit Joshi, CEO and MD of Tech Mahindra, commented, “It is encouraging to see positive momentum in most industry verticals, leading to revenue growth and margin expansion in an otherwise seasonally weak quarter. We continue to focus on execution and are on track to achieve our stated goals for FY27.”

Rohit Anand, CFO of Tech Mahindra, added, “The Q1 results mark a positive start for both the current turnaround year and our medium-term strategy. As outlined in our strategic priorities, we remain focused on investing in the business for long-term sustainable performance.”

Tech Mahindra’s headcount increased by 2,165 sequentially but decreased by 677 year-on-year, bringing the total headcount to 147,620. Attrition remained stable at 10% sequentially.