Tech Mahindra Q2 Results: Net profit jumps 33% YoY to Rs 1,586 crore; co declares Rs 15/share dividend, 1:1 bonus issue

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Profit is attributable to the owners of the company.

Revenue from operations rose 15.6% YoY to Rs 16,180.2 crore in Q2FY27 from Rs 13,994.9 crore in Q2FY26.

Along with the earnings, the company’s board declared an interim dividend of Rs 15 per equity share of face value Rs 5 each, equivalent to 300%, for the financial year 2026-27. It also approved a 1:1 bonus issue, under which shareholders will receive one bonus equity share for every existing equity share held, subject to the applicable terms and conditions.

EBITDA came in at Rs 2,878.5 crore, up 32.8% from Rs 2,168 crore in the year-ago quarter.

The company’s board declared an interim dividend of Rs 15 per equity share of face value Rs 5 each, equivalent to 300%, for FY27. It also recommended a 1:1 bonus issue, under which shareholders will receive one fully paid-up equity share for every existing equity share held, subject to shareholder approval through a postal ballot.

The board also recommended increasing the company’s authorised share capital to Rs 1,000 crore from Rs 924.3 crore to facilitate the proposed bonus issue.

The record date for the interim dividend has been fixed as October 23, 2026, with payment scheduled by November 13. The record date for the bonus issue will be announced separately.

Tech Mahindra Q2 Results: Business highlights

During the quarter, Tech Mahindra expanded its artificial intelligence (AI) initiatives and partnerships across telecommunications, software engineering, enterprise transformation, cybersecurity and industrial automation.

The company launched Zero Gravity Telco Architecture, designed to help telecom operators address architectural constraints that limit the safe deployment of AI agents and support their transition to AI-native operations.

It also announced a strategic partnership with SpaceXAI to build a global AI-powered software engineering practice, combining the latter’s AI-native development platform with Tech Mahindra’s engineering and transformation expertise.

In another initiative, Tech Mahindra launched Indus Terra, a 30-billion-parameter educational large language model (LLM), developed with Nvidia and AWS as part of the IndiaAI Mission. It also partnered with I-HUB Quantum Technology Foundation to advance indigenous quantum computing capabilities in India.

The company launched its Consumer Agentic Experience Studio (CAX Studio) to help enterprises explore and scale AI-led transformation across the consumer value chain. The initiative involves ecosystem collaboration with Google, SAP and Blue Yonder.

Tech Mahindra also expanded its collaboration with Google Cloud to strengthen agentic AI capabilities across its workforce. As part of the initiative, the company rolled out the ‘Build with Gemini’ hands-on workshop to more than 12,500 associates worldwide.

In enterprise transformation, the company announced an expanded multi-year partnership focused on helping businesses move AI projects from pilot stages to production-scale deployments, leveraging solutions built on the ServiceNow AI Platform.

Other partnerships included a collaboration with Cisco to develop an AI-driven Security Service Edge offering for global enterprises, and an alliance with Wandelbots to accelerate the adoption of AI-powered automation in manufacturing.

Tech Mahindra also announced a global alliance with Rezolve Ai to advance agentic commerce, enabling enterprises to develop AI-driven customer experiences that can understand intent, recommend products and complete transactions.

Separately, it partnered with Uniphore to co-develop and deliver agentic AI solutions for enterprise clients worldwide through an initiative combining Uniphore’s Business AI Cloud platform with Tech Mahindra’s digital transformation and global delivery capabilities.

Tech Mahindra’s total headcount stood at 152,206 at the end of the quarter, while its last-twelve-month (LTM) IT attrition rate was 11.7%.

Free cash flow stood at $135 million, and days sales outstanding (DSO) came in at 88 days. Cash and cash equivalents totalled Rs 7,330 crore at the end of the quarter.

Management commentary

Tech Mahindra’s management highlighted sustained business momentum, supported by deal wins exceeding $1 billion in each of the last four quarters and year-on-year constant currency growth of 7.2%. The company also pointed to continued margin expansion, disciplined execution and investments in artificial intelligence (AI) to drive productivity and support future growth.

Mohit Joshi, CEO and managing director of Tech Mahindra, said, “Deal wins exceeding $1 billion in each of the last four quarters reflect the strength of our customer relationships and the trust we have built. With 7.2% year-on-year constant currency growth, we continue to sustain business momentum. As we celebrate our 40th anniversary this quarter, we look ahead with confidence, building on our legacy of innovation, entrepreneurship, and long-term value creation for our stakeholders.”

Rohit Anand, chief financial officer of Tech Mahindra, said, “We delivered another strong quarter of growth, with margins expanding for the twelfth consecutive quarter, reflecting disciplined execution. We continue to invest in AI to improve productivity, drive innovation and build capabilities for future growth."

Tech Mahindra share price

Tech Mahindra shares settled at Rs 1,650 apiece on the NSE on October 15, up 4.75% from the previous close of Rs 1,575.20, ahead of the company's results announcement.

Tech Mahindra shares have gained 2.63% so far in 2026, compared with a 12% decline in the Nifty 50, on a year-to-date (YTD) basis, according to NSE data. The company had a market capitalisation of around Rs 1,61,726 crore on the exchange.