New Delhi: India’s fifth-largest IT services company, Tech Mahindra, reported a 34% YoY rise in its net profit to Rs. 1.141 crore from Rs. 851 crore last year in Q1FY26. The company’s revenue growth has stagnated at 2.7% YoY to Rs.13,351 crore from Rs.13,005 crore from last year. The company’s operating profit also saw a 34% increase YoY.
The Pune-based company has bagged $809 million in new deals, which the management has credited with steady execution and workforce optimization.
Analysts have had a mixed review of the company’s results, with some concerned about the company’s stagnating revenue growth while others flag the company’s stretched valuations.
Brokerage house Motilal Oswal has reiterated its ‘Buy’ rating for the company, predicting a 24% upside to the current share price. The company’s healthy deal wins, margin growth and stabilization of the communications vertical have helped the company tide over the challenges faced, including a rising attrition rate to 12.6% from 11.8% a year ago.
Nomura, on the other hand, has maintained its ‘buy’ rating, even though it predicts a slightly lower upside of 15% from current levels.
Most analysts agree that the Q1 results are a mixed bag for the company, especially as the company aims to expand its operations despite attrition risks and the right enablement of AI-based solutions to its services.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
