Conference Call with Tech Mahindra Management and Analysts on Q1FY27 Performance and Outlook. Listen to the full earnings transcript.
IT Consulting & Software company Tech Mahindra announced Q1FY27 results Standalone Financial Highlights: Total Income: The company reported a total income of Rs 1,30,813 million in Q1FY27, representing a YoY increase of 9.11% from Rs 1,19,889 million in Q1FY26 and a QoQ increase of 2.51% from Rs 1,27,613 million in Q4FY26. Revenue from Operations: Revenue stood at Rs 1,32,186 million in Q1FY27, recording a YoY growth of 14.01% compared to Rs 1,15,946 million in Q1FY26 and a QoQ growth of 2.02% compared to Rs 1,29,565 million in Q4FY26. Profit Before Tax: The PBT for the quarter was Rs 15,097 million, which is a YoY decline of 2.04% from Rs 15,411 million in Q1FY26 but a significant QoQ increase of 82.26% from Rs 8,283 million in Q4FY26. Net Profit: Net profit for the period was Rs 11,379 million in Q1FY27, showing a YoY decline of 3.44% from Rs 11,784 million in Q1FY26 and a QoQ increase of 110.22% from Rs 5,413 million in Q4FY26. Earnings Per Share (EPS): Basic EPS for Q1FY27 was Rs 11.60, compared to Rs 12.02 in Q1FY26 and Rs 5.52 in Q4FY26. Consolidated Financial Highlights: Total Income: Consolidated total income reached Rs 1,56,055 million in Q1FY27, up 15.00% YoY from Rs 1,35,695 million in Q1FY26 and up 4.94% QoQ from Rs 1,48,714 million in Q4FY26. Revenue from Operations: Consolidated revenue stood at Rs 1,57,119 million in Q1FY27, marking a YoY growth of 17.68% from Rs 1,33,512 million and a QoQ growth of 4.22% from Rs 1,50,761 million in Q4FY26. EBIT: As per the press release, EBIT rose to Rs 2,264 crore, an increase of 53.3% YoY and 8.6% QoQ. EBIT margin stood at 14.4%. Profit Before Tax: PBT reached Rs 20,419 million in Q1FY27, reflecting a growth of 26.19% YoY from Rs 16,181 million and 14.03% QoQ from Rs 17,906 million in Q4FY26. Net Profit (Attributable to Owners): Profit for the period was Rs 14,651 million in Q1FY27, up 28.45% YoY from Rs 11,406 million and up 8.22% QoQ from Rs 13,538 million in Q4FY26. Earnings Per Share (EPS): Basic EPS for the quarter was Rs 16.53, up from Rs 12.87 in Q1FY26 and Rs 15.27 in Q4FY26. Free Cash Flow: The company generated a free cash flow of USD 167 million in Q1FY27, which is 108% of the PAT and marks a 94% YoY increase. Business Highlights: Segment-wise Performance: IT Services: Revenue reached Rs 1,32,450 million in Q1FY27, compared to Rs 1,26,608 million in Q4FY26 and Rs 1,12,637 million in Q1FY26. Business Process Services (BPS): Revenue reached Rs 24,669 million in Q1FY27, compared to Rs 24,153 million in Q4FY26 and Rs 20,875 million in Q1FY26. Vertical-wise Performance (% Mix): Communications contributed 32.3% of the revenue. Manufacturing contributed 19.3% (growing 9.0% QoQ and 17.2% YoY). BFSI contributed 16.7%. Technology, Media and Entertainment contributed 12.9%. Retail, Logistics and Transport contributed 8.1%. Healthcare and Lifesciences contributed 7.3%. Deal Wins: New deal wins TCV (Total Contract Value) stood at USD 1,078 million for Q1FY27, up 33.3% YoY. Geography-wise Performance (% Mix): The Americas led with 48.6%, followed by Europe at 27.5% and the Rest of the World (ROW) at 23.9%. Client Metrics: The company increased its USD 50 million+ client base to 33 (up by 7 YoY) and its USD 20 million+ client base to 66 (up by 6 YoY). Headcount and Attrition: Total headcount at the end of the quarter was 1,46,760, reflecting a QoQ decrease of 863. LTM IT attrition improved to 11.8%. Acquisition: On May 27, 2026, the company acquired an 85% stake in Avant Techno Solutions, a Canada-based firm specializing in payments modernization, for a consideration of Rs 1,875 million (CAD 27.26 million). Strategic Launches: The company announced the launch of Agentic Development & Modernization Services (ADMS) and established a Communications Experience Center in Pune as an AI-led co-innovation hub. Mohit Joshi, CEO & Managing Director, Tech Mahindra, said: “YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding USD 1 billion dollars underscores the resilience of our business and the growing relevance of our offerings. Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY.” Rohit Anand, Chief Financial Officer, Tech Mahindra, said: “We delivered a strong Q1 performance with broad-based growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum. We remain committed to building a future-ready organization through continued investments in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent—while maintaining a clear focus on growth and operational rigor.” Result PDF