Tech Mahindra announced strong financial performance for the first quarter ended June 30, 2026, with its profit after tax (PAT) soaring by 28.4% year-on-year to Rs 1,465 crore. The IT services giant also saw its revenue from operations increase by 17.7% year-on-year, reaching Rs 15,712 crore.
A significant highlight for the quarter was the impressive deal wins, which totaled $1,078 million in new contracts. This marks a 33.3% increase over the previous year and continues a trend of securing over $1 billion in deals for three consecutive quarters.
Financial Performance Overview
The company's audited consolidated results, released on Thursday, July 16, 2026, also showed robust growth in earnings before interest and taxes (EBIT). EBIT for the quarter rose 53.3% year-on-year and 8.6% quarter-on-quarter to Rs 2,264 crore, pushing the EBIT margin to 14.4%. Diluted earnings per share stood at Rs 16.50.
In dollar terms, revenue reached $1.66 billion, a 6.1% year-on-year increase. EBIT in dollar terms was $238 million, up 38.6% year-on-year, while PAT stood at $154 million, reflecting a 16.2% year-on-year jump. The profit after tax margin improved to 9.3%, up 80 basis points year-on-year. Free cash flow for the quarter was reported at $167 million.
Operational Metrics and CEO's Outlook
Despite the strong financial results, Tech Mahindra's total headcount saw a slight quarter-on-quarter decrease of 863, settling at 146,760 employees by the end of the quarter. The last twelve months' IT attrition rate was 11.8%, and days of sales outstanding were 84 days. Cash and cash equivalents at the quarter's end stood at Rs 9,695 crore.
"YoY growth coupled with three consecutive quarters of deal wins exceeding $1 billion dollars underscores the resilience of our business and the growing relevance of our offerings," said Mohit Joshi, CEO and Managing Director, Tech Mahindra. "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.”
The consistent growth across revenue, profit, and EBIT, coupled with significant deal wins, signals strong business momentum and effective client engagement for Tech Mahindra.