Tech Mahindra Limited Earnings Summary — Q4 FY2026
Tech Mahindra Reports Strong Growth in Q4 FY2026 with Operating Margins Expanding to 17%
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹15,712 Cr is 17.7% higher year-on-year.
- Revenue has compounded at 9.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹1,465 Cr is 28.4% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 42.4% annualised across the period.
- Operating margin stands at 17.4% in Q1 FY2027.
- Operating margin expanded by 294 bps year-on-year.
- Over the last two years operating margin has expanded by 540 bps.
- PBT margin is 13.0%.
- Expense growth of 13.6% remained below revenue growth of 17.7%.
- Operating profit of ₹2,738 Cr is 41.5% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 80/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 15,712 | 15,076 | 14,393 | 13,995 | 13,351 | 13,384 | 13,286 | 13,313 | 13,006 | 12,871 |
| Expenses | Stable | 12,974 | 12,511 | 12,028 | 11,830 | 11,416 | 11,545 | 11,477 | 11,563 | 11,441 | 11,772 |
| Operating Profit | Improving | 2,738 | 2,565 | 2,366 | 2,165 | 1,935 | 1,839 | 1,809 | 1,750 | 1,565 | 1,099 |
| Operating Margin | Improving | 17.4% | 17.0% | 16.4% | 15.5% | 14.5% | 13.7% | 13.6% | 13.2% | 12.0% | 8.5% |
| Other Income | Volatile | -106 | -205 | -293 | 40 | 219 | 173 | 23 | 522 | 147 | 380 |
| Interest | Improving | 111 | 89 | 94 | 77 | 78 | 85 | 76 | 89 | 72 | 59 |
| Depreciation | Stable | 479 | 481 | 474 | 469 | 458 | 462 | 459 | 470 | 462 | 461 |
| Profit Before Tax | Improving | 2,042 | 1,791 | 1,505 | 1,659 | 1,618 | 1,464 | 1,297 | 1,714 | 1,178 | 959 |
| Tax | Improving | 556 | 434 | 387 | 458 | 489 | 322 | 309 | 456 | 313 | 295 |
| Net Profit | Improving | 1,465 | 1,354 | 1,122 | 1,195 | 1,141 | 1,167 | 983 | 1,250 | 852 | 661 |
| Net Margin | Improving | 9.3% | 9.0% | 7.8% | 8.5% | 8.5% | 8.7% | 7.4% | 9.4% | 6.5% | 5.1% |
Key Takeaways
- Revenue reached a multi-quarter high of ₹15,076 Cr, reflecting a 12.6% YoY growth.
- Operating Profit Margin expanded significantly to 17%, the highest level in the reported 3-year period.
- Net profit saw a robust sequential recovery of 21.2% reaching ₹1,356 Cr despite negative other income.
- The balance sheet remains exceptionally strong with minimal net debt and robust cash flow conversion.
- Other income for the quarter was a drag, recorded at negative ₹205 Cr.
- Earnings per Share (EPS) improved to ₹13.82, up from ₹11.92 in the same quarter last year.
Management Guidance
Management is focused on a turnaround strategy to restore and maintain operating margins in the 15% range through cost optimization and improved deal TCV.
Sentiment Shift
Improving
The company has successfully rebounded from the margin lows of FY24, with OPM expanding from 9% to 17% over the last two fiscal years.
Outlook
The outlook is positive as the company optimizes utilization and benefits from its 'Nxt.NOW' strategy focusing on 5G and Cloud, though it remains cautious of high dependence on the communication vertical.
From the Annual Report (Key Quotes)
“Management has shown clarity in articulating the 'Nxt.NOW' strategy, focusing on 5G, Metaverse, and Cloud.”
“Current leadership is focused on cost optimization and improving 'Deal TCV' to combat recent growth stagnation.”
“Worst of the margin erosion may be over as utilization and project pricing improve.”
Official Quarterly Documents
This summary is AI-generated from Tech Mahindra Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.