Key Takeaways
- Tech Mahindra reports strong profit growth with rising deal wins
- Revenue growth driven by manufacturing and financial services demand
- Hiring plans resume as visibility improves across business segments
Tech Mahindra reported a 28.4% rise in consolidated net profit for the June quarter, reflecting strong execution and steady demand across key sectors. The company posted a profit after tax of Rs 1,465 crore, supported by broad-based growth and increased deal activity.
Revenue Growth Driven By Key Industry Segments
Revenue from operations for the quarter rose 17.7% to Rs 15,712 crore. In dollar terms, revenue stood at $1,660 million, marking a 2.2% sequential increase and a 6.1% year-on-year rise.
Growth was led by manufacturing and financial services, alongside contributions from healthcare and retail segments. The manufacturing vertical recorded a 17.2% increase, while banking, financial services and insurance grew 8.1% year on year.
The communications segment, which contributes 32.3% of total revenue, saw a 1.3% increase year on year but declined 1.3% sequentially. Retail, logistics and transport, accounting for 8.1% of revenue, expanded 8.6% year on year, supported by demand in e-commerce and automation.
The company also reported strong deal momentum during the quarter. New deal wins reached $1,078 million, reflecting a 33.3% increase compared to the previous year. The client base with contracts above $50 million increased by 7, indicating deeper engagement with key customers.
Pre-tax operating trends showed stable performance, supported by disciplined execution and working capital management. The company highlighted that growth has moved ahead of peer averages, reflecting progress in its transformation strategy.
Hiring Plans Resume As Growth Visibility Improves
With improved revenue visibility, Tech Mahindra plans to restart campus hiring. The company indicated that hiring activity had been limited due to earlier uncertainty in demand, but stronger pipeline visibility is now supporting workforce expansion plans.
Management noted that its multi-year transformation strategy, introduced in April 2024, is delivering measurable outcomes. Investments in capability building, talent acquisition and client expansion have contributed to improved financial performance.
The company expects growth momentum to continue through the year, supported by a strong order pipeline and ongoing deal ramp-ups. Performance is expected to remain stable, subject to broader economic conditions.
Across the IT sector, companies are reporting mixed trends in the June quarter. While Tech Mahindra delivered double-digit growth, other firms have shown moderate expansion.
Wipro reported a net profit of Rs 3,352 crore with revenue of Rs 24,478.6 crore, reflecting 10.6% growth year on year. Sequential profit declined 4.2%, while revenue rose 1%.
HCL Technologies posted a net profit of Rs 4,624 crore, marking a growth of over 20%. The company maintained its revenue growth guidance of 1% to 4% for the financial year.
TCS reported a net profit of Rs 13,349 crore, reflecting a 4.61% increase. The company indicated improving demand conditions in the current quarter.
Tech Mahindra’s performance highlights strengthening demand across multiple sectors and improving deal activity. For Indian entrepreneurs and business owners, sustained IT sector growth indicates continued investment in digital transformation, technology services and enterprise solutions.
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