Tech Mahindra share price gains after Q1 FY27 earnings beat

Tech Mahindra share price climbed over 3 percent on Friday, July 17, after the IT services company reported a consolidated net profit of about ₹1,465 crore for Q1 FY27, up roughly 28 percent year-on-year, with revenue rising around 15 percent to nearly ₹15,606 crore, driven by broad-based growth, strong deal wins and margin expansion.

Tech Mahindra share price today

Stock Performance

Metric	Value
Day high (BSE, Jul 17)	₹1,562.90
Previous close (NSE reference)	₹1,510.30
Approximate intraday gain	3.4%
Close ahead of results (BSE, Jul 16)	₹1,515.60:₹1,515.85
1-month change	About +5:6%
6-month change	Around -7% to -9%
1-year change	Around -1%

• Tech Mahindra share price hit a day high of ₹1,562.90 on BSE after results.
• The move represented an intraday gain of about 3.4 percent versus the prior close.
• The stock had already risen about 5:6 percent over the past month before the print.
• Over six months, Tech Mahindra shares remain down roughly 7:9 percent.
• The one-year share performance is broadly flat, with a decline of around 1 percent.

Why the stock moved

Key Event

Item	Details
Event	Q1 FY27 earnings announcement
Net profit	₹1,465.1 crore (up 28.4% YoY)
Revenue from operations	₹15,605.5 crore (up 15% YoY)
Revenue in USD	$1.66 billion
Constant currency revenue growth	6.6% YoY, 2.6% QoQ
Deal wins TCV	$1.078 billion (up 33.3% YoY)
EBIT margin	14.4% (up ~330 bps YoY, 60 bps QoQ)

• Double-digit revenue and profit growth underpinned the share price reaction.
• Constant currency revenue growth of 6.6 percent YoY exceeded several analyst expectations.
• Total contract value of new deals crossed $1 billion for the third straight quarter.
• EBIT margin expanded for the fourth consecutive quarter to 14.4 percent.
• Brokerages raised earnings estimates and target prices following the Q1 performance.

Financial highlights

Financial Performance

Metric	Q1 FY27	Q1 FY26	YoY Change
Revenue from operations	₹15,605.5 crore	₹13,569.5 crore	+15.0%
Net profit	₹1,465.1 crore	₹1,140.6 crore	+28.4%
EBIT	₹2,264 crore	~₹1,477 crore*	+53.3%
EBIT margin	14.4%	11.1%	+330 bps

\*Prior-year EBIT approximated from growth rate.

• Revenue grew 15 percent year-on-year to ₹15,605.5 crore in Q1 FY27.
• Net profit rose 28.4 percent to ₹1,465.1 crore compared with ₹1,140.6 crore a year earlier.
• EBIT increased 53.3 percent year-on-year to ₹2,264 crore, showing operating leverage.
• EBIT margin expanded to 14.4 percent from 11.1 percent in Q1 FY26.

Sequential Performance

Metric	Q1 FY27	Q4 FY26	QoQ Change
Revenue from operations	₹15,605.5 crore	₹15,076.1 crore	+4.0%
Net profit	₹1,465.1 crore	₹1,356.4 crore	+8.0%
EBIT	₹2,264 crore	~₹2,085 crore*	+8.6%
EBIT margin	14.4%	13.8%	+60 bps
Revenue in USD	$1.66 billion	~$1.62 billion*	+2.2%

\*Derived from reported growth rates.

• Revenue rose about 4 percent sequentially in rupee terms in a seasonally weak quarter.
• Net profit grew 8 percent quarter-on-quarter, aided by margin gains.
• EBIT margin improved 60 basis points from 13.8 percent in the March quarter.
• Dollar revenue increased 2.2 percent QoQ to $1.66 billion.

Segment Performance

Segment	Q1 FY27 Revenue	YoY Change	Q1 FY27 Segment Profit	YoY Change
Information Technology	₹13,245 crore	+17.6%	₹2,903 crore	+39.9%
Business Process Services (BPS)	₹2,466.9 crore	+18.2%	₹437.6 crore	+30.4%

• IT services revenue grew 17.6 percent year-on-year to ₹13,245 crore.
• IT segment profit rose 39.9 percent, indicating margin improvement.
• BPS revenue increased 18.2 percent to ₹2,466.9 crore.
• BPS segment profit climbed 30.4 percent, supporting consolidated earnings.

Geography and Vertical Mix

Category	YoY Revenue Growth
Europe	12.1%
Americas	4.8%
Rest of the World	2.5%
Manufacturing vertical	17.2%
BFSI vertical	8.1%
Communications vertical	1.3%

• Europe was the fastest-growing geography with 12.1 percent revenue growth.
• Americas delivered moderate growth of 4.8 percent year-on-year.
• Manufacturing led vertical performance with 17.2 percent growth.
• BFSI revenue increased 8.1 percent, adding to diversification.
• Communications, the largest vertical, returned to modest growth at 1.3 percent.

Cost Structure

Expense Item	Q1 FY27	Q1 FY26	YoY Change
Total expenses	₹13,559.3 crore	₹11,951.9 crore	+13.4%
Employee benefits	₹7,876.6 crore	~₹7,505 crore*	+5.0%
Subcontracting costs	₹1,790.9 crore	~₹1,311 crore*	+36.6%
Other expenses	₹3,301.9 crore	~₹2,607 crore*	+26.7%
Finance costs	₹111.3 crore	~₹77.8 crore*	+43.1%
Depreciation and amortisation	₹478.6 crore	~₹458.0 crore*	+4.5%

\*Approximate base figures from growth rates.

• Total expenses rose 13.4 percent, slower than revenue growth, aiding margins.
• Employee costs increased 5 percent, reflecting disciplined hiring and wage management.
• Subcontracting costs jumped 36.6 percent, linked to deal execution and ramp-ups.
• Other operating expenses rose 26.7 percent year-on-year.
• Finance costs increased 43.1 percent, while depreciation grew 4.5 percent.

Deal wins and client metrics

Deal Wins

Metric	Value
New deal wins TCV	$1.078 billion
YoY change in TCV	+33.3%
Quarters with >$1 billion TCV	3 consecutive

• Tech Mahindra reported $1.078 billion in new deal wins in Q1 FY27.
• Total contract value rose 33.3 percent year-on-year.
• The company has now logged over $1 billion in TCV for three straight quarters.

Client Profile

Metric	Q1 FY27	Q1 FY26
Clients with ≥$50 million annual revenue	33	26
Clients with ≥$10 million annual revenue	115	108

• Seven additional clients now contribute at least $50 million in annual revenue.
• The number of $10 million-plus clients increased by seven year-on-year.
• The broader client base supports revenue visibility across verticals.

Management commentary

• Management attributed the quarter’s performance to healthy client additions and disciplined execution.
• The company reported sustained demand across verticals and geographies.
• Leadership reiterated a focus on strengthening AI capabilities and differentiated platforms.
• Operational efficiency and working capital discipline were cited as margin drivers.

> “YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $1 billion dollars underscores the resilience of our business and the growing relevance of our offerings. Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY.”

Mohit Joshi, CEO and Managing Director

> “We delivered a strong Q1 performance with broadbased growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum. We remain committed to building a future-ready organization through continued investments in differentiated capabilities, domain-specific and sovereign AI, platforms, and talent, while maintaining a clear focus on growth and operational rigor.”

Rohit Anand, Chief Financial Officer

Business context and strategy

Workforce and Attrition

Metric	Q1 FY27	Q4 FY26
Total headcount	146,760	147,623
Sequential change	-863	:
IT business headcount	74,689	75,377
Last-twelve-month attrition	11.8%	12.1%

• Total employees declined by 863 sequentially, reflecting productivity measures.
• IT business headcount fell by 688 compared with the March quarter.
• LTM attrition improved to 11.8 percent from 12.1 percent in Q4 FY26.
• Lower attrition supports delivery stability and cost control.

Acquisition Activity

Item	Details
Target	Alluri Technologies (Avant), Canada
Stake acquired	85%
Purchase consideration	₹187.5 crore
Date	May 27, 2026
Remaining stake	15% to be acquired after 3 years, subject to performance

• Tech Mahindra acquired 85 percent of Alluri Technologies (Avant) for ₹187.5 crore.
• The remaining 15 percent stake will be bought after three years, subject to conditions.
• The deal is expected to strengthen capabilities in targeted technology domains.

Brokerages’ reaction

• Several brokerages cited Tech Mahindra’s Q1 performance as a strong start to FY27.
• Analysts pointed to broad-based growth, margin expansion and deal momentum.
• Multiple firms raised FY27 and FY28 earnings estimates following the results.
• Target prices were revised higher, reflecting improved growth visibility.
• Some brokerages expect Tech Mahindra to outpace large-cap IT peers in FY27 growth.

What investors are watching next

• Execution and ramp-up of large telecom and European automotive deals in coming quarters.
• Sustainability of margin expansion amid phased wage hikes from Q2.
• Demand trends in communications, manufacturing and BFSI verticals.
• Integration of Alluri Technologies and contribution to revenue and capabilities.
• Next key catalyst will be Tech Mahindra’s Q2 FY27 earnings and updated management outlook.

Frequently Asked Questions

Why did Tech Mahindra share price rise after Q1 FY27 results?

Tech Mahindra share price rose over 3 percent after the company reported stronger-than-expected Q1 FY27 numbers. Net profit increased 28.4 percent year-on-year to ₹1,465.1 crore, while revenue grew 15 percent to ₹15,605.5 crore. Margin expansion to 14.4 percent EBIT, constant currency revenue growth of 6.6 percent and deal wins exceeding $1 billion for the third consecutive quarter improved growth visibility, prompting brokerages to raise earnings estimates and target prices.

How did Tech Mahindra perform financially in Q1 FY27?

In Q1 FY27, Tech Mahindra posted revenue from operations of ₹15,605.5 crore, up 15 percent year-on-year. Consolidated net profit rose 28.4 percent to ₹1,465.1 crore. EBIT increased 53.3 percent to ₹2,264 crore, with EBIT margin expanding to 14.4 percent from 11.1 percent a year earlier. Constant currency revenue grew 6.6 percent year-on-year and 2.6 percent sequentially, while dollar revenue reached $1.66 billion, showing 2.2 percent quarter-on-quarter growth.

What operational and strategic factors are important for Tech Mahindra now?

Investors are tracking the ramp-up of large telecom and European automotive deals, which are central to sustaining revenue momentum. Margin trends will be closely watched as wage hikes are implemented from Q2. Operationally, Tech Mahindra’s attrition has improved to 11.8 percent and headcount has been optimised. Strategically, the acquisition of an 85 percent stake in Canada-based Alluri Technologies (Avant) for ₹187.5 crore is expected to add capabilities, with its integration and performance a future monitorable.