Tech Mahindra Q4 FY26 profit up 21% QoQ, ₹36 dividend

Tech Mahindra reported a stronger March quarter, with profit rising sequentially and margins improving, while the board approved a final dividend for FY26. The IT services company said consolidated net profit for Q4 FY26 rose 20.7% quarter-on-quarter (QoQ) to ₹1,353.8 crore. Revenue from operations increased 4.7% QoQ to ₹15,076.1 crore, a print that was described as beating estimates in reports.

On a year-on-year (YoY) basis, the company posted a 16.04% rise in consolidated net profit versus Q4 FY25. Revenue also rose 12.64% YoY in the March quarter. Alongside the results, Tech Mahindra announced a final dividend of ₹36 per equity share for FY26, taking the total dividend for the year to ₹51 per share including the interim payout.

Key numbers from the March quarter

For Q4 FY26, Tech Mahindra’s net profit came in at ₹1,353.8 crore, compared with ₹1,166.7 crore in the corresponding quarter last year. Revenue from operations for Q4 FY26 was ₹15,076.1 crore, up from ₹13,384 crore in Q4 FY25. On the cost side, total expenses increased to ₹13,080.7 crore from ₹12,091.3 crore a year earlier.

At the operating level, earnings before interest and tax (EBIT) was reported at ₹2,084 crore for the quarter, up 10.2% sequentially and 48.3% YoY. EBIT margin improved to 13.8%. Profit after tax was also described as growing 16% YoY, and earnings per share (EPS) was reported at ₹15.24.

Dividend: ₹36 final payout, ₹51 total for FY26

Tech Mahindra’s board recommended a final dividend of ₹36 per equity share (face value ₹5) for the year ended March 31, 2026. This final dividend is in addition to an interim dividend of ₹15 per share paid in November 2025. Taken together, the total dividend for FY26 stands at ₹51 per share, which the company described as its highest-ever.

The company’s CFO Rohit Anand said FY26 marked the end of the “Stabilisation Phase” of its transformation journey, noting that margins expanded for the 10th consecutive quarter despite a challenging macro environment. He also said the company increased the dividend by over 13% under its capital allocation framework.

Record date and what shareholders should track

One report cited July 3, 2026 as the record date for entitlement of the final dividend, subject to shareholder approval. For investors, the key watchpoints typically include the record date, shareholder approval status, and the eventual payment date as communicated by the company.

FY26 performance: profit and revenue rose

For the full financial year FY26, profit attributable to owners of the company increased 13.15% to ₹4,810.9 crore from ₹4,251.5 crore in FY25. Revenue from operations for FY26 rose 7.2% to ₹56,815.4 crore.

Management commentary linked the year’s performance to improved execution and continued deal traction. The company also reiterated that it is pivoting towards an AI-led operating model.

AI-led operating model and deal momentum

CEO Mohit Joshi said the company is embedding artificial intelligence across service lines. Management also pointed to “strong deal momentum,” with reports noting consecutive quarters with more than $1 billion in deal bookings.

Separately, one report cited Tech Mahindra’s highest-ever deal wins of $1,794 million over the last five years, alongside a strong performance in its core IT services business. The company’s narrative for FY26 is that it has moved past a stabilisation period and is now focusing on scaling under its transformation plans.

Stock reaction around results

Despite the profit growth and dividend announcement, Tech Mahindra shares were reported trading lower after the results. One report said the stock was down 1.91% at ₹1,471.70. Another update referenced the stock trading around ₹1,466.65 on the BSE.

Snapshot table: Q4 FY26 and FY26 highlights

Why the results matter for investors

The quarter’s print combines sequential improvement in profit and revenue with a stated uplift in operating performance, as shown by higher EBIT and improved margin. The dividend announcement adds a shareholder returns element, with the company highlighting a record annual payout of ₹51 per share.

From an operating narrative standpoint, management’s comment that FY26 marked the end of a stabilisation phase is important context for how investors interpret margin trends. The company also tied its strategy to an AI-led model and highlighted deal momentum, including references to large deal bookings.

Conclusion

Tech Mahindra closed Q4 FY26 with net profit of ₹1,353.8 crore and revenue of ₹15,076.1 crore, alongside an improvement in EBIT margin to 13.8%. The board’s ₹36 final dividend takes FY26 dividends to ₹51 per share, with July 3, 2026 cited as the record date in one report, subject to shareholder approval. Investors will now track the dividend process and subsequent updates from management on execution and deal conversion after the March quarter results.