Tech Mahindra Profit Jumps 33 Percent on $1 Billion in Deal Wins

Tech Mahindra gave Indian markets a second reason to cheer on Thursday. The Pune based IT services firm reported a 32.7 percent rise in consolidated net profit to Rs 1,586 crore for the July to September quarter, up from Rs 1,194.5 crore a year earlier, according to its regulatory filing reported by The Hindu BusinessLine on October 15.

Revenue from operations rose 15.6 percent to Rs 16,180 crore, from Rs 13,995 crore a year earlier. From the previous quarter, profit rose 8 percent and revenue rose 3 percent. New deal wins reached 1.023 billion dollars in total contract value, up 25.4 percent from a year ago.

The numbers that matter

This was the fourth straight quarter with deal wins above 1 billion dollars. Constant currency growth came in at 7.2 percent year on year. The board also declared an interim dividend of Rs 15 per share and approved a 1 to 1 bonus issue, one bonus share for every share held, according to the results summary carried on October 15.

Chief executive Mohit Joshi tied the run of deal wins to customer relationships and trust, and noted the company marks its 40th anniversary this quarter. The results landed on a strong day for the sector. Indian benchmarks closed sharply higher on Thursday, and IT stocks led part of that rally after HCL Technologies beat expectations earlier in the week.

The wider results day

Tech Mahindra was not alone on October 15. Wipro reported standalone profit after tax of Rs 2,862.7 crore, up 9 percent year on year, in the same BusinessLine results tracker. Nestle India reported profit up 36 percent to Rs 1,026.7 crore. Polycab India reported profit up 44 percent to Rs 965.2 crore. Heritage Foods went the other way, with profit down about 39 percent to Rs 30.85 crore.

That mix is why the market read Tech Mahindra closely. Revenue beat the soft mood in global tech, where AI linked stocks sold off this week. The deal number matters more than one quarter of profit for an IT services firm, because it shows work booked for future quarters.

What happens next

Investors will test two claims in the next quarter. The first is whether deal wins stay above 1 billion dollars for a fifth quarter. The second is whether revenue growth holds as clients weigh AI spending against cost cuts. For now, Tech Mahindra has posted the kind of quarter its turnaround story needed, with growth, deals and a bonus issue in the same filing.