Tech Mahindra Ltd — FY25 / Early FY26 Performance & Strategic Outlook

Financial Performance — FY25 & Q4 FY25 Tech Mahindra’s profit after tax for FY25 was ₹4,252 crore, up about 80.3% year-on-year. Revenue for FY25 was ₹52,988 crore, a modest growth of ~1.9% over the prior year. In Q4 FY25, net profit jumped ~76.5% from Q4 FY24 to ₹1,167 crore. The revenue in Q4 was ₹13,384 crore, up about 4% year-on-year and up ~0.7% quarter-on-quarter. Margins improved: EBIT in the quarter was ₹1,405 crore, showing strong margin expansion due to better operating leverage and cost management. Key Metrics & Trends • EBIT margin rose significantly year-on--year, helped by cost optimization and execution discipline. • Deal wins / Total Contract Value (TCV) for FY25 were strong (USD 2.7 billion), indicating pipeline strength. • The company reported good free cash flows; cash and cash equivalents are healthy. • Employee cost dynamics: headcount is nearly stable with minor quarterly adjustments; attrition remains a metric of focus. Dividend & Shareholder Returns Tech Mahindra recommended a final dividend of ₹30 per share for FY25. Total dividend for the year works out to ₹45 per share. Recent / Early FY26 (Q1) Signals In Q1 FY26, revenue was ₹13,351 crore, up ~2.7% year-on-year. PAT for Q1 was ~₹1,141 crore, marking about 34% YoY growth. EBIT also grew strongly, and margins expanded compared to the like period. Outlook & Risks Growth is likely to be modest in revenue given macro-headwinds, currency effects, and weak demand in some verticals (especially telecom). Margin expansion remains a key lever, through cost control, operational efficiency, and improved utilization. Regulatory, currency and global demand swings are risks. Deal wins and the ability to execute “turnaround strategies” will heavily influence performance going forward.