Tech Mahindra’s profit rose about 33% in the July-September quarter, and its board has recommended a 1:1 bonus issue along with an interim dividend of ₹15 a share. The IT services company reported a consolidated net profit of ₹1,586 crore for the second quarter of FY27, up from ₹1,195 crore a year earlier.
Revenue grew 15.6% to ₹16,180 crore. That was slightly ahead of what analysts expected, while profit came in a little below estimates, Business Standard reported. Tech Mahindra’s shares rose about 7% to ₹1,764.25 on the BSE in morning trade after the results.
Tech Mahindra Q2 FY27: the numbers
- Net profit: ₹1,586 crore, up 32.7% year on year and 8.2% from the previous quarter (₹1,465 crore)
- Revenue: ₹16,180 crore, up 15.6% year on year and 3% from the previous quarter
- Constant-currency growth: 7.2% year on year and 2.4% quarter on quarter
- EBIT: ₹2,387 crore, up 40.5%
- EBIT margin: 14.8%, about 260 basis points higher than a year ago
- New deal wins: $1.023 billion, up 25.4% year on year
- Free cash flow: $135 million
- Headcount: 1,52,206 employees
- IT attrition (last 12 months): 11.7%
Figures as reported by Kotak Neo and Business Standard from the company’s filing.
How it compared with estimates
Analysts polled by Bloomberg had expected revenue of about ₹16,027 crore and profit of about ₹1,642 crore, according to Business Standard. So revenue was a little better than expected and profit a little lower. Markets seemed to focus on the margin and the payouts: the shares rose about 7% from the previous close of ₹1,648.70.
Why do analysts look at “constant currency” growth? Tech Mahindra earns most of its money in dollars, euros and pounds. When the rupee weakens, revenue in rupees looks bigger even if the business has not grown. Constant-currency growth of 7.2% strips out that effect, which is why it is lower than the 15.6% rupee growth.
The margin story
Tech Mahindra has been working to rebuild its profit margins, which had fallen sharply in 2023-24. Chief Financial Officer Rohit Anand said margins have now expanded for twelve quarters in a row, and the company kept its target of an average EBIT margin of 15% for FY27. At 14.8% in this quarter, it is close to that mark.
Chief Executive Mohit Joshi pointed to deal wins of more than $1 billion in each of the last four quarters. Deal wins are a sign of future revenue, since large contracts are usually spread over several years. The company also said it is continuing to invest in artificial intelligence.
Dividend and bonus: what shareholders get
- Interim dividend: ₹15 per share (face value ₹5)
- Record date for the dividend: October 23, 2026
- Payment date: on or around November 13, 2026
- Bonus issue: 1:1, meaning one new share for every share you hold, subject to shareholder approval; the record date will be announced separately
Under India’s T+1 settlement system, you generally need to buy shares at least one trading day before the record date for your name to be on the company’s list. Check with your broker for the exact cut-off.
What a 1:1 bonus means in simple terms
A bonus issue does not give you extra money. If you hold 100 shares worth ₹1,700 each, you will hold 200 shares after the bonus, but the share price will adjust to roughly half. The total value of your holding stays about the same on day one. Companies often use bonus issues to make each share cheaper to buy and to increase the number of shares traded.
One thing to remember: the dividend record date of October 23 comes before the bonus. So the ₹15 dividend will be paid on the shares you hold today, not on the bonus shares.
The bigger picture for Indian IT
The second-quarter results season for Indian IT companies runs through October. Investors are watching whether demand from clients in the US and Europe is recovering, how much AI is changing project sizes, and whether hiring picks up. Tech Mahindra’s numbers suggest steady deal flow and better margins, though its constant-currency growth shows the business is growing more slowly than the rupee figures suggest.
For more on how markets are moving this month, read about the rupee’s 98-paise jump, the upcoming Jio Platforms IPO, and the IPOs that opened this week.
Questions to think about
- When a company beats on revenue but misses on profit, which number should matter more to investors?
- Do bonus issues add real value for shareholders, or mainly change how the stock looks?
- How might AI tools change the size and number of IT services contracts in the next few years?
Sources: Tech Mahindra’s Q2 FY27 results as reported by Business Standard, Kotak Neo and IIFL, as of October 17, 2026. This is not investment advice; talk to a SEBI-registered adviser before investing.
