Tech Mahindra Q2: Profit Rises 33%, 1:1 Bonus Issue Proposed

Tech Mahindra Q2: Profit Jumps 33%, 1:1 Bonus Issue Approved Tech Mahindra (

)reported a strong Q2 FY27 performance, with consolidated net profit rising 32.7% year-on-year to ₹1,585.6 crore. Revenue from operations increased 15.6% to ₹16,180.2 crore, reflecting improving business momentum and continued execution of large client deals. Key Q2 FY27 Highlights - Net profit increased to ₹1,585.6 crore from ₹1,194.5 crore a year earlier. - Revenue rose 15.6% year-on-year to ₹16,180.2 crore. - EBITDA grew 32.8% to ₹2,878.5 crore. - The company reported year-on-year constant-currency growth of 7.2%. - Deal wins exceeded $1 billion in each of the last four quarters. - Free cash flow stood at $135 million, while cash and cash equivalents totalled ₹7,330 crore. Dividend and Bonus Issue The board declared an interim dividend of ₹15 per share, with October 23, 2026, fixed as the record date. It also recommended a 1:1 bonus issue, under which eligible shareholders would receive one additional share for every existing share, subject to the applicable approval process. The bonus record date will be announced separately. My View Tech Mahindra’s results indicate improving profitability, supported by revenue growth, consecutive margin expansion and strong deal wins. Its expanding AI partnerships could create additional opportunities in software engineering, telecom, cybersecurity and enterprise transformation. However, investors should focus on sustainable revenue growth and the company’s ability to convert AI initiatives and large contracts into profitable business. A bonus issue increases the number of shares but does not, by itself, increase the underlying value of an investor’s holding. The key monitorables remain deal conversion, margin improvement, constant-currency growth and the commercial contribution from AI-led services.