The shares of prominent technology consulting service providers gained up to 2 percent after the company’s net profit and revenue increased by 72 percent and 4 percent, respectively in Q4.
Price Movement
With a market capitalization of Rs 1.41 lakh crore, the shares of Tech Mahindra Ltd were trading at Rs 1,449.10 per share, increasing around 0.21 percent as compared to the previous closing price of Rs 1,446.10 apiece.
Reason for Rise
The shares of Tech Mahindra Ltd have seen bullish movement after reporting positive results in Q4FY25, revenue increased by 1 percent on a quarter-on-quarter basis from Rs. 13,286 crore in Q3FY25 to Rs 13,384 crore in Q4FY25. Further, revenue zoomed by 4 percent year on year, from Rs 12,871 crore in Q4FY24 to Rs 13,384 crore in Q4FY25.
The company’s net profit increased by 15 percent on a quarter-on-quarter basis, from Rs. 989 crore in Q3FY25 to Rs. 1,142 crore in Q4FY25. Further, net profit magnified by 72 percent year on year from Rs 664 crore in Q4FY24 to Rs 1,142 crore in Q4FY25.
The company posted a strong FY24- 25 performance, with revenue surging 2 percent from Rs 51,996 crore to Rs 52,988 crore. Net profit increased by 77 percent, rising from Rs 2,397 crore to Rs 4,253 crore, reflecting robust growth and improved profitability over the previous financial year. The board announced a final dividend of Rs. 30 per equity share of the face value of Rs. 5 each (600 percent) for the financial year ended 31st March, 2025.
Also read: Multibagger Stock Jumps 10% following robust Q4 Results with 114% Profit growth; Announces Dividend
Vertical Performance FY25
Tech Mahindra’s FY25 vertical revenue mix: Communications leads at 33.1 percent (–5.0 percent YoY), Manufacturing 17.3 percent (–1.6 percent), Banking, Financial Services & Insurance 16.1 percent (+4.3 percent), Technology, Media & Entertainment 13.9 percent (–0.4 percent), Retail, Transport & Logistics 7.9 percent (+4.4 percent), Healthcare & Lifesciences 7.5 percent (+3.7 percent), Others 4.3 percent (+16.0 percent). These segments represent Tech Mahindra’s diverse industry exposure.
Partnerships & New Launches
Tech Mahindra launched its ‘TechM Consulting’ service line and inaugurated a Manufacturing Xperience Centre in Chennai. It partnered with NVIDIA to develop AI-driven pharmacovigilance via its TENO framework, expanded its Google Cloud alliance, collaborated with Qualcomm through IndusQ LLM, and joined the AI-RAN Alliance to advance AI solutions in telecom.
Analyst Recommendation
Nomura, one of the well-known brokerages globally, gave a ‘Buy’ call on the stock with a target price of Rs 1,630 apiece, indicating a potential upside of 12 percent from Thursday’s price of Rs 1,451.25 per share.
Company Profile
Tech Mahindra Limited is an India-based provider of digital transformation, consulting, and business re-engineering services and solutions. The Company operates through two segments: Information Technology (IT) Services and Business Processing Outsourcing (BPO).
Written by Abhishek Singh
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