Tech Mahindra reported a consolidated net profit of Rs 1,465 crore for the first quarter of fiscal year 2027, marking a 28.4% increase from the same period last year. The IT services major, however, fell short of analyst expectations for its profit. Bloomberg analysts had projected a net profit of Rs 1,582 crore for the quarter.[business-standard]
Strong Revenue Growth and Deal Momentum
The company's revenue from operations saw a robust rise, climbing 17.7% year-on-year to Rs 15,712 crore in Q1 FY27. This figure also represented a 4.2% sequential growth compared to the previous quarter. In dollar terms, revenue grew by 6.1% year-on-year and 2.2% sequentially, reaching $1.66 billion. The company's Q1 performance actually surpassed revenue estimates, which were set at Rs 15,458 crore by Bloomberg analysts.[thehindu+9]
Tech Mahindra secured new deal wins totaling $1.078 billion during the quarter, showing a significant 33.3% increase year-on-year. This marks the third consecutive quarter where deal wins have exceeded the $1 billion mark, signaling strong business momentum. The company also expanded its client base, adding seven new clients in the $50 million-plus segment. All business verticals demonstrated year-on-year growth, with manufacturing leading the way at a 17.2% increase.[sahi+8]
Profit Margins and Workforce Dynamics
The company's earnings before interest and taxes (EBIT) margin improved to 14.4% in the first quarter. This was an increase of 70 basis points quarter-on-quarter, driven by cost-efficiency measures and operational discipline. Tech Mahindra expressed confidence in achieving a 15% margin for the full fiscal year 2027. EBIT itself surged by 53.3% year-on-year to Rs 2,264 crore.[business-standard+7]
Despite the positive financial performance, Tech Mahindra's headcount saw a reduction during the quarter. The employee count decreased by 863 people, bringing the total workforce to 146,760. The last twelve months' (LTM) attrition rate for IT services stood at 11.8%, a slight dip from the previous quarter's 12.1%. However, due to stronger revenue visibility and a positive demand outlook, Tech Mahindra is considering restarting campus hiring initiatives.[m+6]
Management Optimism and Future Outlook
Mohit Joshi, CEO and Managing Director of Tech Mahindra, highlighted the company's resilient business model. "Year-on-year growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $1 billion underscores the resilience of our business and the growing relevance of our offerings," Joshi said. He also noted the deepening client relationships and broad-based growth across all verticals as encouraging signs.[yourstory+3]
Chief Financial Officer Rohit Anand also expressed satisfaction with the quarter's performance. "We delivered a strong Q1 performance with broad-based growth, margin expansion, and disciplined working capital management," Anand stated, adding that it reflects consistent execution and sustained business momentum. The company remains committed to investing in differentiated capabilities, including domain-specific and sovereign AI, platforms, and talent, while focusing on growth and operational rigor.[business-standard+2]
Tech Mahindra's strong first-quarter results, marked by significant profit and revenue growth, along with robust deal wins, position the company for a sustained performance throughout the remainder of FY27, provided macroeconomic conditions remain stable.[m]
