Tech Mahindra reported a net profit of Rs 1,250 crore for the second quarter of the financial year 2025 (Q2 FY25), reflecting a remarkable year-on-year (YoY) increase of 153 per cent. Compared to the previous quarter, profits rose by 46.8 per cent, according to the company.
Revenue for the quarter reached Rs 13,313 crore, marking a 3.5 per cent YoY growth. On a sequential basis, revenue also increased by 2.4 per cent.
The company secured net new deal wins of $603 million for the quarter, a decrease of 5.7 per cent YoY but an increase of 12.9 per cent sequentially.
Growth was primarily driven by the retail, transport, and logistics sectors, which saw 4.7 per cent YoY increases and 5.6 per cent sequentially. Meanwhile, the BFSI sector grew by 4.5 per cent YoY and 2.4 per cent quarter-on-quarter.
The communications sector continued to lag, experiencing a YoY decline of 1.7 per cent, although it showed a sequential growth of 2.7 per cent. The operating margins for the quarter stood at 9.6 per cent, reflecting an increase of 1.1 per cent compared to the previous quarter.
Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra, said, “We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft. We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter.”
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimisation and steady free cash flow generation as we continue our journey towards FY27 stated targets. In line with our capital allocation policy, the board has declared an interim dividend of Rs 15 per share.”
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