6 hours ago
1
Shares of Tech Mahindra Ltd slipped on Thursday, even as the IT services major reported a robust 34 per cent year-on-year (YoY) rise in consolidated net profit for the first quarter of FY26. Investor sentiment appeared cautious amid subdued revenue growth and broader macroeconomic concerns.
Tech Mahindra shares fall
At 11:39 AM, the stock was trading at Rs 1,579.90 on the NSE, down Rs 28.00 or 1.74 per cent for the day.
The company posted a net profit of Rs 1,141 crore for the April–June quarter, up 34 per cent YoY. However, consolidated revenue rose only 2.7 per cent to Rs 13,351 crore, while dollar revenue edged up just 0.4 per cent to USD 1,564 million. Profit after tax stood at USD 133 million, marking a 30.2 per cent increase from the year-ago period.
Earnings before interest and tax (EBIT) rose 34 per cent YoY to Rs 1,477 crore, with operating margins improving by 260 basis points to 11.1 per cent. In dollar terms, EBIT came in at USD 172 million.
During the earnings call, CEO Mohit Joshi reiterated the company’s long-term target of achieving a 15 per cent EBIT margin by FY27. He highlighted the ongoing implementation of Project Fortius, which focuses on cost optimisation, including lowering overhead expenses and increasing fresher hiring to enhance margin efficiency.
Tech Mahindra’s stock has come under pressure in July, declining nearly 6 per cent so far and on track to end its three-month winning streak. Year-to-date, the stock is down almost 7 per cent, underperforming both the Nifty IT index — down 13 per cent — and the Nifty 50, which has gained 6 per cent over the same period.
Despite strong profit numbers, analysts say muted revenue growth and persistent global headwinds are tempering investor enthusiasm.
English (US) ·