Synopsis: Tech Mahindra reported a strong Q1 FY27 performance with double-digit growth in revenue, operating profit and net profit, supported by margin expansion and healthy deal wins. The company also extended the completion timeline for acquiring the remaining 20 percent stake in Tech Mahindra Arabia, reinforcing its long-term strategy to strengthen its Middle East operations.
Shares of Tech Mahindra Limited are likely to remain in focus after the company announced its audited consolidated financial results for the quarter ended June 30, 2026, along with an update on its acquisition of Tech Mahindra Arabia.
Tech Mahindra Limited has a total market capitalization of approximately Rs. 1,51,228 crore. The company’s shares were trading at Rs. 1552.60 apiece on the stock exchange, up by 2.80 percent. The stock has gained 6.88 percent over the last five trading sessions, while it has gained 6.17 percent over the last month. The stock touched a 52-week high of Rs. 1854 and a 52-week low of Rs. 1304.
Q1 FY27 performance
According to the company’s audited consolidated financial results, revenue from operations increased 17.7 percent year-on-year to Rs. 15,711.9 crore in Q1 FY27 from Rs. 13,351.2 crore in the corresponding quarter last year. Total income rose 14.9 percent YoY to Rs. 15,605.5 crore, compared to Rs. 13,569.5 crore in Q1 FY26.
The company’s profit before exceptional items and tax (PBT) grew 26.5 percent YoY to Rs. 2,046.2 crore, while profit before tax (PBT) increased 26.2 percent to Rs. 2,041.9 crore from Rs. 1,618.1 crore in the year-ago quarter.
Profit after tax attributable to the owners of the company stood at Rs. 1,465.1 crore, registering a 28.5 percent year-on-year growth compared to Rs. 1,140.6 crore in Q1 FY26. On a consolidated basis, total profit after tax increased 31.4 percent YoY to Rs. 1,486.3 crore from Rs. 1,128.8 crore.
The company’s profitability also improved sequentially. Revenue from operations rose marginally from Rs. 15,076.1 crore in Q4 FY26 to Rs. 15,711.9 crore in Q1 FY27, while PAT attributable to shareholders increased 8.2 percent QoQ from Rs. 1,353.8 crore to Rs. 1,465.1 crore, indicating continued operational momentum.
Tech Mahindra also reported basic earnings per share (EPS) of Rs. 16.53, compared with Rs. 12.87 in the corresponding quarter last year, reflecting the strong improvement in profitability.
Acquisition update
In a separate regulatory filing, Tech Mahindra informed the exchanges that it has extended the timeline for completing the acquisition of the remaining 20 percent stake in Tech Mahindra Arabia Limited from Midad Company Limited. The acquisition was originally announced in March 2026 under a Share Sale and Purchase Agreement executed by Tech Mahindra London Limited, the company’s wholly owned subsidiary.
The company stated that certain conditions precedent for completing the transaction are still under process. Accordingly, both parties have mutually agreed to extend the completion deadline to August 31, 2026. Upon completion, Tech Mahindra will indirectly own 100 percent of Tech Mahindra Arabia, strengthening its presence in Saudi Arabia and giving it complete ownership of its Middle East operations.
Why it matters
The acquisition aligns with Tech Mahindra’s strategy of increasing control over key international subsidiaries in high-growth markets. Saudi Arabia continues to witness rising investments in digital infrastructure, cloud computing, artificial intelligence and smart city projects under Vision 2030, creating long-term opportunities for IT service providers.
At the same time, the company’s strong Q1 earnings indicate improving profitability and execution despite a challenging global IT spending environment. Healthy deal wins, margin expansion and stronger cash generation could support earnings visibility in the coming quarters.
For investors, the combination of robust quarterly results and the planned full ownership of Tech Mahindra Arabia reflects the company’s focus on profitable growth, international expansion and strengthening its digital services portfolio.
Incorporated in 1986, Tech Mahindra Limited provides a comprehensive range of IT services, including IT-enabled services, application development and maintenance, consulting, engineering services, cloud, cybersecurity, artificial intelligence and enterprise business solutions to clients across multiple industries.
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