Indian IT services giant Tech Mahindra announced a significant financial upturn for the second quarter of the fiscal year 2027, with its consolidated profit after tax (PAT) soaring by 32.7% year-on-year to ₹1,586 crore. The company's board also proposed a 1:1 bonus share issue, a move that awaits shareholder endorsement.
Strong Financial Performance
During the quarter, Tech Mahindra's revenue reached ₹16,180 crore, marking a 15.6% increase compared to the same period last year. Earnings before interest and taxes (EBIT) saw an even more impressive surge of 40.5%, climbing to ₹2,387 crore. This robust performance led to an improvement in key profitability metrics, with the PAT margin expanding by 130 basis points (bps) to 9.8%, and the EBIT margin growing by approximately 260 bps to 14.8%. Diluted earnings per share (EPS) for the quarter stood at ₹17.84.
Bonus Issue & Dividend Declaration
The proposed 1:1 bonus issue, if approved by shareholders via a postal ballot, would be Tech Mahindra's first such issuance since March 2015. This recommendation entails issuing one new fully paid-up bonus equity share of ₹5 each for every existing fully paid-up equity share. The company plans to capitalize amounts from its Securities Premium Account, General Reserves, Retained Earnings, or other permitted reserves for this purpose.
In addition to the bonus recommendation, the board declared an interim dividend of ₹15 per share. The record date for determining shareholders' eligibility for this interim dividend has been set for Friday, October 23, 2026.
Operational Highlights
Operationally, Tech Mahindra secured new deal wins with a total contract value (TCV) of $1,023 million, representing a 25.4% increase year-on-year. The company's total headcount stood at 152,206 employees, while its last-twelve-month (LTM) IT attrition rate was reported at 11.7%.
The earnings announcement was made after market hours on Thursday, October 15, 2026. Earlier in the day, Tech Mahindra shares had closed up 4.61% at ₹1,648.70.