Tech Mahindra FY26: Profit +13%, revenue +7.2%, ₹51 dividend

Key takeaway from Tech Mahindra’s FY26 close

Tech Mahindra ended FY26 with higher earnings and revenue, alongside a steady March-quarter performance that reflected stronger deal momentum. For FY26, the IT services firm reported consolidated net profit of ₹4,810.9 crore, up 13.2% from ₹4,253.0 crore in FY25. Revenue rose 7.2% year-on-year to ₹56,815.4 crore.

The company’s FY26 numbers were supported by management commentary that the year marked the conclusion of a stabilisation phase. Management also pointed to margin improvement for the tenth straight quarter, despite what it described as a challenging macro environment. Alongside this, the company said it is advancing its transition towards an artificial intelligence-driven model.

Q4 FY26 results: PAT up 16% YoY, revenue up 12.6% YoY

In Q4 FY26, Tech Mahindra reported profit after tax (PAT) of ₹1,353.8 crore, up 16.0% year-on-year from ₹1,166.7 crore in Q4 FY25. On a sequential basis, PAT increased 20.6% from ₹1,122.0 crore in Q3 FY26.

Revenue for Q4 FY26 came in at ₹15,076.1 crore, up 12.6% YoY from ₹13,384.0 crore and up 4.7% QoQ from ₹14,393.2 crore. EBIT for the quarter stood at ₹2,084 crore, up 10.2% QoQ and up 48.3% YoY. Profit before tax (PBT) was ₹1,790.6 crore, rising 22.3% YoY and 0.7% QoQ.

Estimates check: revenue beat, profit missed Bloomberg forecasts

Tech Mahindra’s quarterly performance beat estimates on revenue but missed on net profit, as reported in the provided material. Bloomberg had estimated Q4 FY26 revenue at ₹14,776 crore and net profit at ₹1,509.4 crore.

Reuters also attributed the company’s quarterly outperformance versus analysts’ expectations to momentum in its communications and manufacturing verticals.

Other income turned negative in Q4 FY26

A notable line item in the March quarter was other income, which turned negative at ₹(204.7) crore. This compared with a positive ₹172.7 crore in Q4 FY25 and was cited as weighing slightly on overall profitability.

FY26 profitability: PBT up 21.1%, EBIT up 39.2%

For the full year, Tech Mahindra reported PBT of ₹6,845.5 crore in FY26, up 21.1% from ₹5,653.2 crore in FY25. EBIT for FY26 was ₹7,152 crore, up 39.2% year-on-year.

Management commentary in the provided material linked the year’s performance to disciplined execution and improving margins across multiple quarters.

Deal wins: strongest in five years, consecutive $1 billion-plus quarters

Deal momentum was a key theme in the company’s update. Tech Mahindra reported new deal wins of $1,794 million for FY26, up 41.6% YoY, described as the highest in the past five years. For the quarter, new deal wins were $1.07 billion, down 2.1% quarter-on-quarter but up 34.5% year-on-year.

CEO Mohit Joshi said the company is accelerating its transition to an AI-led organisation, embedding AI across services and expanding capabilities. He also said this is reflected in the firm’s highest deal wins in recent years, including consecutive quarters exceeding $1 billion, and added that the company remains on track to deliver its FY27 commitments.

Dividend: final ₹36 per share, FY26 total ₹51 per share

The board cleared a final dividend of ₹36 per share for FY26. The company’s CFO Rohit Anand said Tech Mahindra continued a disciplined approach to capital allocation and lifted its total dividend for the year by more than 13% to ₹51 per share, the highest it has declared so far.

Balance sheet snapshot: cash at ₹8,456 crore

Tech Mahindra reported cash and cash equivalents of ₹8,456 crore at the end of the quarter. The company also disclosed total headcount for FY26 at 147,623, down 1,108.

Stock reaction: shares down 1.89% on the day

Shares of Tech Mahindra fell 1.89% to ₹1,472, recovering from the day’s low of ₹1,404.25, according to the provided data.

Summary table: key reported numbers

Why this update matters for investors

The FY26 print combines mid-single-digit revenue growth with a sharper improvement in profitability lines such as EBIT and PBT, while management continues to emphasise sustained margin improvement across multiple quarters. Deal wins were positioned as a key indicator of demand and pipeline strength, with FY26 wins reported at $1,794 million.

At the same time, the quarter included pressure from other income turning negative, which the company said weighed slightly on profitability. Investors also had a clear shareholder-return signal, with the board approving a final dividend of ₹36 per share and FY26 total dividend rising to ₹51 per share.

Conclusion

Tech Mahindra closed FY26 with revenue of ₹56,815.4 crore and net profit of ₹4,810.9 crore, alongside Q4 PAT of ₹1,353.8 crore and revenue of ₹15,076.1 crore. Management highlighted improving margins, strong deal momentum, and its continued shift toward an AI-led operating model, while reiterating that it is on track to deliver FY27 commitments.