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Fri, 17 Jul 2026
09:22:29 am
Fri, 17 Jul 2026
09:22:29 am
Rudransh Sangwan
Published at: July 17, 2026, 5:15 AM
Synopsis
Tech Mahindra reported stronger than expected Q1 FY27 earnings with 28% profit growth and robust deal wins. Here's what Nomura, Nuvama, Motilal Oswal, Systematix and other brokerages expect for the stock.
Tech Mahindra Q1 Results FY27: Tech Mahindra reported a strong start to FY27, delivering double-digit growth in revenue, profitability, and operating margins while maintaining strong deal momentum. The IT services major posted a 28.4% year-on-year increase in net profit, 53.3% growth in EBIT, and secured new deal wins worth $1.08 billion, marking the third consecutive quarter of crossing the $1 billion milestone. The company's continued focus on AI-led transformation, cloud, engineering services, and digital modernization helped drive broad-based growth across verticals.
| Metric | Q1 FY27 | YoY Growth |
|---|---|---|
| Revenue | ₹15,712 crore | 17.7% |
| EBIT | ₹2,264 crore | 53.3% |
| EBIT Margin | 14.4% | +330 bps |
| Net Profit (PAT) | ₹1,465 crore | 28.4% |
| EPS | ₹16.50 | Higher YoY |
| Free Cash Flow | $167 million | Healthy |
| New Deal Wins (TCV) | $1.078 billion | 33.3% |
| Cash & Cash Equivalents | ₹9,695 crore | Strong Balance Sheet |
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Tech Mahindra reported ₹15,712 crore in consolidated revenue during the June quarter, reflecting 17.7% year-on-year and 4.2% sequential growth. Operating performance improved significantly as EBIT climbed to ₹2,264 crore, while the EBIT margin expanded to 14.4%, supported by better execution, disciplined cost management, and an improved business mix.
The company also generated $167 million in free cash flow, highlighting healthy cash generation and operational efficiency.
| Metric | Q1 FY27 | YoY Growth |
|---|---|---|
| Revenue | $1.66 billion | 6.1% |
| EBIT | $238 million | 38.6% |
| EBIT Margin | 14.4% | +330 bps |
| PAT | $154 million | 16.2% |
| Deal Wins | $1.078 billion | 33.3% |
Tech Mahindra continued strengthening its position in enterprise AI and digital transformation during the quarter. The company launched Agentic Development & Modernization Services, aimed at helping enterprises modernize application development using AI-powered automation.
It also expanded partnerships with Microsoft, Cisco, Perplexity, Telefónica Germany, UKG, Workday, Kitsa, and StackGen, reinforcing its capabilities across cloud infrastructure, cybersecurity, AI, telecom, healthcare, workforce transformation, and enterprise software.
In addition, Tech Mahindra completed the acquisition of Avant Techno Solutions, enhancing its capabilities in payments modernization and wealth management platforms within the BFSI sector.
The company secured $1.078 billion in new Total Contract Value (TCV) during Q1 FY27, representing 33.3% year-on-year growth.
Major wins included projects across:
These large deals strengthen revenue visibility for the coming quarters.
| Operational Metric | Q1 FY27 |
|---|---|
| Total Employees | 146,760 |
| Net Headcount Change | -863 QoQ |
| IT Attrition | 11.8% |
| Days Sales Outstanding | 84 Days |
| Cash Position | ₹9,695 crore |
While headcount declined marginally during the quarter, attrition remained stable, reflecting disciplined workforce optimization amid improving productivity.
Mohit Joshi, CEO & Managing Director, said the company's consistent revenue growth and three consecutive quarters of billion-dollar deal wins demonstrate the strength of Tech Mahindra's strategy and the growing demand for its AI-led digital transformation offerings.
Rohit Anand, Chief Financial Officer, highlighted that margin expansion, disciplined execution, and strong working capital management contributed to the robust quarterly performance. He added that the company will continue investing in sovereign AI, domain-specific AI, cloud platforms, engineering capabilities, and talent to support long-term growth.
During the quarter, Tech Mahindra continued receiving global recognition for technology leadership and sustainability, including:
| Key Focus Area | Why It Matters |
|---|---|
| AI Business Growth | Expanding enterprise AI opportunities |
| Large Deal Execution | Revenue visibility over coming quarters |
| Margin Expansion | Improving profitability |
| Cloud & Engineering Business | High-growth digital segments |
| BFSI & Telecom Demand | Core revenue drivers |
| Free Cash Flow | Financial strength |
| Future Guidance | FY27 growth outlook |
Tech Mahindra has delivered one of its strongest quarterly performances in recent years, supported by healthy revenue growth, expanding margins, robust profitability, and sustained large deal wins. The company's continued investments in artificial intelligence, cloud computing, cybersecurity, engineering services, and digital transformation position it well to benefit from rising global technology spending.
With three consecutive quarters of over $1 billion in deal wins, improving operating efficiency, and a strong enterprise AI strategy, Tech Mahindra appears well-positioned for sustained growth through FY27, although macroeconomic conditions and global IT spending trends will remain important factors to watch.
Tech Mahindra reported a consolidated net profit of ₹1,465 crore, up 28.4% year-on-year.
The company reported ₹15,712 crore in revenue, representing 17.7% YoY growth.
The company secured $1.078 billion in new deal wins during the June quarter, up 33.3% YoY.
Growth was driven by enterprise AI adoption, cloud transformation, engineering services, telecom projects, large global deal wins, and improved operational efficiency.
The company expects continued growth supported by AI-led transformation, cloud services, engineering, cybersecurity, strong deal execution, and strategic global partnerships.
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