The IT company Tech Mahindra reported a significant year-over-year (Y-o-Y) growth in Profit After Tax (PAT) of 32.7%, reaching 1586 crore rupees for the quarter from July to September of the fiscal year 2027 (Q2FY27). This growth was driven by the development of production and communications verticals.
The company's revenue increased by 15.6% year-over-year, amounting to 16,180 crore rupees. Compared to the previous quarter, profit grew by 8.2%, and revenue increased by 3%. Furthermore, revenue exceeded the forecast by Bloomberg analysts, which was 16,027 crore rupees, although profit was lower than the expected 1,642 crore rupees.
The second quarter marked the fourth consecutive quarter in which the company secured new deals worth over $1 billion, representing a 25.4% year-over-year increase. Mohit Joshi, Managing Director (MD) and Chief Executive Officer (CEO) of the company, noted that such large contracts reflect the strength of client relationships and the trust that has been earned. He added that thanks to business growth of 7.2% year-over-year on a constant currency basis, the company continues to maintain its pace of development.
Joshi also emphasized that these achievements were made possible by the strong capabilities of Artificial Intelligence (AI) underpinning the company's solutions. He stated that Tech Mahindra is just a few basis points away from achieving its target EBITDA margin of 15% in the fiscal year 2025. He recalled that the company, which previously showed a decline of 5% year-over-year, is now growing by 7.2% year-over-year, demonstrating commitment to this goal over the last 12 quarters.
Additionally, Joshi informed about Tech Mahindra's low dependence on H1-B visas in the USA, as about 70% of employees are US citizens, and the remaining 30% are filled by workers with valid visas. He assured that the company always pays close attention to compliance with visa requirements and broader global norms. The company's workforce, based in Pune, reached 152,206 people by the end of the July to September period, with 5,446 new employees hired during the quarter.
The company also announced the distribution of bonus shares worth 4.9 billion rupees, the first such move since 2015, as well as an interim dividend of 15 rupees per share.