Tech Mahindra, the tech giant of the Mahindra Group, will declare its Q1FY26 results on July 16. Ahead of its quarterly earnings, Tech Mahindra traded higher on BSE and NSE despite the broader market trend being cautious to bearish. The tech player is expected to report better EBIT margins and stable deal wins with solid profitability in Q1. Its rivals like HCL Tech and TCS have declared a disappointing quarter; hence, how Tech Mahindra performs will be keenly watched.
Tech Mahindra Share Price:
At the time of writing, Tech Mahindra shares performed at Rs 1584.20 apiece, up by 0.4%. The stock was near its intraday high of Rs 1598.40 apiece. Its market value stood at Rs 155,424.77 crore. crore.
The stock's price-to-equity ratio stood at 44.68x, while return on equity is around 15.66% as of July 16, 2025, as per BSE data.
Overall, Tech Mahindra is among the top bulls on BSE and NSE ahead of its Q1FY26 results.
Tech Mahindra Q1 Results Preview:
"We expect the company to report revenue growth of 0.6% on a QoQ basis, led by weakness in the Comviva business and manufacturing and retail business, while its margins are likely to expand marginally due to cost optimization initiatives," said analysts at Axis Securities in a report.
Meanwhile, analysts at Kotak Institutional Equities in their preview report said, "We forecast c/c revenue decline due to-- (1) weak hitech vertical, (2) seasonal weakness in Comviva business. These headwinds will more than offset the tailwind from new deal ramp-ups."
But analysts expect expansion in Tech Mahindra's EBIT margins by 60 bps qoq, led by rupee depreciation and cost optimization initiatives.
Also, net new deal wins are forecasted at US$750 million, stable qoq and 40% increase yoy. More importantly, new deals are won at higher margins.
On the bottom line, Kotak's analysts said, "net new deal wins of US$750 mn, stable qoq and 40% increase yoy. More importantly, new deals are won at higher margins."
Key Focus Areas In Tech Mahindra's Q1 Results:
According to Kotak, expect investor focus on: (1) measures to improve to margins to 15% by FY2027, (2) time frame within which turnaround initiatives will start showing up in revenue performance, (3) growth in keenly watched financial services vertical, (4) reasons for weak hitech and BPO businesses, (5) health of deal pipeline and positioning in cost take-out deals, (6) any revenue leakage in existing accounts and positioning in vendor consolidation events and (7) TechM's point of view on GenAI, expected productivity benefits and likely disruption in BPO business.
Moreover, Axis Securities said, watch out for a) Deal TCVs and pipeline from the communication vertical, b) Attrition, c) Outlook on growth/margins, and d) Multi-year deals.
Tech Mahindra posted revenue of $ 6,264 million in FY25, down by 0.2% YoY. While revenue grew by 0.3% YoY in constant currency terms. In Indian rupees, revenue stood at Rs 52,988 crore, up 1.9% YoY. Also, EBIT came in at Rs 5,138 crores, higher by 63.3% YoY. The company reported strong consolidated PAT of Rs 4,252 crore in FY25, registering a growth of a whopping 80.3% YoY.
Tech Mahindra offers technology consulting and digital solutions to global enterprises across industries, enabling transformative scale at unparalleled speed. With 150,000+ professionals across 90+ countries helping 1100+ clients, Tech Mahindra provides a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, AI & analytics, and cloud & infrastructure services.
Click it and Unblock the Notifications
Sign in with Google