The company posted a net profit of ₹1,195 crore, slightly below the CNBC-TV18 poll estimate of ₹1,317 crore but marking a quarter-on-quarter (QoQ) increase of 4.8% from ₹1,141 crore in the previous quarter.
On a year-on-year (YoY) basis, the net profit came in lower than the ₹1,250 crore it had posted in the year-ago period.
Tech Mahindra revenue and operation performance
Tech Mahindra’s revenue for the quarter stood at ₹13,995 crore, beating estimates of ₹13,805 crore and representing a sequential growth of 4.8% from ₹13,351 crore in Q1FY26. Its revenue in Q2FY25 stood at ₹13,313 crore.
The company’s operating performance also showed significant improvement, with Earnings Before Interest and Tax (EBIT) rising 15.1% QoQ to ₹1,699.4 crore, surpassing the CNBC-TV18 poll estimate of ₹1,622 crore. The EBIT margin expanded to 12.1% from 11.1% in the previous quarter, outperforming the expected 11.7%.
TechM interim dividend
The Board of Directors declared an interim dividend of ₹15 per share, underscoring Tech Mahindra’s commitment to enhancing shareholder value.
Tech Mahindra closed the quarter with a total headcount of 152,714, reflecting a year-on-year decline of 1,559 employees.
The company maintained a Last Twelve Months (LTM) IT attrition rate of 12.8%, indicating relative stability in workforce retention. Operational efficiency remained steady, with Days Sales Outstanding (DSO) holding firm at 94 days.
At the end of the quarter, Tech Mahindra reported cash and cash equivalents of ₹7,287 crore, underscoring its strong liquidity position.
#2QWithCNBCTV18 | #TechMahindra posts Q2 FY26 results:
▶️Net profit at ₹1,195 Cr Vs CNBC-TV18 poll of ₹1,317 Cr▶️₹ revenue at ₹13,995 Cr Vs CNBC-TV18 poll of ₹13,805 Cr
▶️EBIT at ₹1,699.4 Cr Vs CNBC-TV18 poll of ₹1,622 Cr
▶️Margin at 12.1% Vs CNBC-TV18 poll of 11.7% pic.twitter.com/Wn2Or8ml2j
— CNBC-TV18 (@CNBCTV18Live) October 14, 2025
Management commentary on Q2 performance
Mohit Joshi, CEO and Managing Director of Tech Mahindra, said, “Tech Mahindra delivered broad-based growth in Q2 FY26, driven by strong execution and strategic initiatives. We launched TechM Orion, our next-generation AI platform, and the TechM Orion Marketplace to accelerate autonomous transformation for enterprises. Recognition from industry analysts reinforces our leadership in advancing next-generation AI.”
Joshi added, “The macroeconomic environment is stabilizing and improving in some regions but remains fragile. We expect growth to gain momentum in the second half of the year.”
Rohit Anand, Chief Financial Officer, highlighted, “This quarter marks the eighth consecutive period of margin expansion, driven by operational efficiency and disciplined execution. Our Total Contract Value (TCV) is up 57% year-on-year on a last twelve months basis, supported by strong deal conversions. The Board’s approval of a ₹15 per share dividend reflects our continued focus on shareholder value.”
Challenges facing the Indian IT sector
India’s $283-billion IT industry continues to face headwinds amid global economic uncertainties. Clients, particularly in North America—the largest market for Indian IT firms—are tightening budgets. Further challenges include the proposed 25% tax on outsourcing payments by the US government and increased scrutiny of H-1B visas, potentially disrupting Indian IT operations overseas.
TechM geographical and segment-wise performance
The Americas, contributing nearly 50% of Tech Mahindra’s revenue, declined 2.7%, which Joshi attributed to “challenging macroeconomic conditions.” In contrast, European revenue rose 5.5%, offering a positive outlook for the company.
Among business segments, communications—the company’s largest—declined 2.2%, though Joshi noted “signs of recovery.” Meanwhile, manufacturing grew 5.2%, and banking posted a 6.2% increase.
Reflecting on industry trends, Joshi said, “The last one year has been a low point for the IT industry, but we expect growth in the future.”
Peers like Tata Consultancy Services (TCS) and HCLTech have also expressed optimism, pointing to growth in specific verticals as key drivers for an improved earnings outlook.
