Tech Mahindra Ltd. is projected to report a sequential rise in both revenue and net profit for the quarter ended September 2025, supported by margin expansion and ramp-ups from recently secured deals.
Key Highlights
- Tech Mahindra’s Q2 FY26 profit likely up 13.3% QoQ, driven by margin expansion and new deals.
- Revenues expected to rise 3.5% to ₹13,811 crore, with EBIT margin improvement from cost efficiencies.
According to consensus estimates compiled by Business Standard, the company’s net profit is expected to rise 13.3% quarter-on-quarter to ₹1,292.9 crore, while revenue is anticipated to increase 3.5% to ₹13,811 crore. On a year-on-year basis, both revenue and profit are projected to grow by 3.7% and 3.43%, respectively. Analysts attribute the expected Ebit margin improvement to reduced subcontracting costs and better SG&A efficiency.
Tech Mahindra will announce its Q2 FY26 results on October 14 (Tuesday). Analysts estimate new deal wins of around $800 million for the quarter. In Q1 FY26, the company’s net profit had declined 2.2% sequentially to ₹1,140 crore, with revenue down 0.25% to ₹13,351 crore. However, deal wins in that quarter rose sharply to $809 million, up 51.5% year-on-year.
Investor attention is expected to focus on deal momentum, financial services growth, visa risks, pipeline health, and the impact of GenAI on productivity and BPO operations.
Brokerages maintain a cautiously optimistic view on Tech Mahindra’s outlook. Kotak Securities expects 0.9% constant currency revenue growth, led by financial services and retail, with a 70-basis-point margin expansion supported by operational leverage and rupee depreciation. The brokerage projects 13% Ebit margins for FY26, with a path toward 15% in FY27.
Also Read: Skillmatics Reports FY25 Loss Despite 39% Surge in Revenue
Motilal Oswal forecasts 1.0% sequential revenue growth, driven by BFSI and retail, and a 50-bps margin improvement to 11.6% owing to efficiency gains. Nuvama Institutional Equities expects 0.9% sequential growth in constant currency (+1.1% in USD terms) and a 70-bps Ebit margin expansion, with management likely to reaffirm its 15% FY27 margin target.
Overall, analysts expect a steady recovery for Tech Mahindra, driven by strong deal conversions, disciplined cost management, and improving efficiency despite ongoing macroeconomic challenges.
