Tech Mahindra Q2 results: PAT rises 33% YoY to Rs 1,586 crore; recommends 1:1 bonus issue

Tech Mahindra Ltd on Thursday reported a 32.7 per cent year-on-year (YoY) rise in consolidated profit after tax (PAT) to Rs 1,586 crore for the second quarter of FY27. The IT services company also recommended a 1:1 bonus issue, subject to shareholders' approval.

The company reported revenue of Rs 16,180 crore, up 15.6 per cent YoY. Earnings before interest and taxes (EBIT) rose 40.5 per cent to Rs 2,387 crore.

Tech Mahindra's PAT margin improved by 130 basis points (bps) YoY to 9.8 per cent, while its EBIT margin expanded by around 260 bps to 14.8 per cent. Diluted earnings per share (EPS) stood at Rs 17.84.

The company's board also declared an interim dividend of Rs 15 per share. The record date for determining shareholders' eligibility for the interim dividend is Friday, October 23, 2026.

Bonus issue

The board has recommended a bonus issue in the ratio of 1:1, subject to shareholders' approval. This would be Tech Mahindra's first bonus issue since March 2015.

"The Board has recommended the following for approval of the Shareholders, through postal ballot: Issue of Bonus Equity Shares in the ratio of 1:1, i.e. one (1) new fully paid-up Bonus Equity Share of Rs. 5/- each for every one (1) existing fully paid-up equity share of Rs. 5/- each, held by the Eligible Members of the Company as on the Record date set for this purpose, by capitalisation of amounts standing to the credit of the Securities Premium Account and/or General Reserves and/or Retained Earnings and/or any other permitted Reserves, as per the Audited Financial Statements of the Company for the financial year ended 31 March 2026," it stated.

Deal wins and employee count

Tech Mahindra reported new deal wins with a total contract value (TCV) of $1,023 million, marking a 25.4 per cent increase YoY.

The company's total headcount stood at 1,52,206, while its last-twelve-month (LTM) IT attrition rate was 11.7 per cent.

The earnings announcement came after market hours on Thursday. Earlier in the day, Tech Mahindra shares climbed 4.61 per cent to settle at Rs 1,648.70.