Tech Mahindra on Thursday reported its financial results for the second quarter of fiscal 2026-27, and the Tech Mahindra Q2 results beat street expectations on both growth and profitability. The Pune-headquartered IT services major posted consolidated revenue of $1.69 billion, up 6.8 per cent year-on-year in reported terms and 7.2 per cent in constant currency, while consolidated net profit surged 32.7 per cent to Rs 1,586 crore for the quarter ended September 30, 2026. In a double bonanza for investors, the board recommended a bonus share issue in the ratio of 1:1 and declared an interim dividend of Rs 15 per share, as chief executive Mohit Joshi hailed a landmark quarter coinciding with the company’s 40th anniversary.
Tech Mahindra Q2 revenue and margins beat estimates
Revenue for the quarter stood at $1,693 million, up 2.0 per cent sequentially, with analysts tracking the Tech Mahindra Q2 numbers noting the broad-based nature of the growth. In rupee terms, revenue from operations rose 15.6 per cent year-on-year to Rs 16,180.2 crore, up from Rs 13,994.9 crore in the year-ago quarter. Constant-currency growth of 7.2 per cent signalled healthy underlying momentum after stripping out exchange-rate effects, an encouraging sign for India’s fifth-largest software exporter at a time when global technology spending remains selective.
Earnings before interest and tax rose to $250 million, up 4.9 per cent quarter-on-quarter and 30.4 per cent year-on-year, with the EBIT margin expanding to 14.8 per cent. The Tech Mahindra Q2 margin story marked the twelfth consecutive quarter of margin expansion, reflecting what management called disciplined execution. Profit after tax stood at $166 million, up 23.2 per cent year-on-year, with the margin improving 130 basis points to 9.8 per cent. In rupee terms, EBIT jumped 40.5 per cent to Rs 2,387 crore and diluted earnings per share came in at Rs 17.84. Sequentially, profit and revenue rose 8 per cent and 3 per cent respectively, indicating that the recovery has been building steadily over recent quarters rather than arriving as a one-off spike.
Tech Mahindra Q2 deal wins stay above $1 billion
The Tech Mahindra Q2 deal-win tally provided the clearest evidence of sustained client demand, with new deal wins worth $1,023 million in total contract value, up 25.4 per cent from a year ago. It was the fourth straight quarter in which deal wins crossed the $1-billion mark. “Deal wins exceeding $1+ billion in each of the last four quarters reflect the strength of our customer relationships and the trust we have built,” Mohit Joshi, chief executive and managing director, said, adding that the company looked ahead with confidence as it celebrated four decades in business.
Joshi also underlined the growing role of artificial intelligence in the pipeline, noting in the Tech Mahindra Q2 commentary that nearly all large deal wins now carry an AI component as clients signing multi-year contracts chase productivity gains. On concerns around US visa policy, the CEO said dependence on the H-1B programme was extremely low, accounting for barely 1 per cent of the company’s 152,206-strong workforce, and pointed to a robust global talent strategy focused on hiring locally across markets.
Tech Mahindra Q2: bonus issue and dividend reward shareholders
The board’s decision to recommend a 1:1 bonus issue, coupled with the Rs 15 interim dividend, made the Tech Mahindra Q2 announcement one of the most shareholder-friendly of the earnings season so far. “We delivered another strong quarter of growth, with margins expanding for the twelfth consecutive quarter, reflecting disciplined execution,” chief financial officer Rohit Anand said. The company ended the quarter with cash and cash equivalents of Rs 7,330 crore, free cash flow of $135 million and days of sales outstanding at 88 days, with last-twelve-month attrition steady at 11.7 per cent.
Taken together, the Tech Mahindra Q2 results paint a picture of an IT major gathering momentum: twelve straight quarters of margin expansion, accelerating deal wins, stable attrition and continued investment in AI-led capabilities. With the 40th-anniversary year under way and management guiding for sustained growth, investors will now watch whether the company can convert its record deal pipeline into faster revenue conversion in the second half of the fiscal. Analysts will also track management commentary on the demand environment across the company’s key verticals, including banking, communications and manufacturing, in the quarters ahead.