Economy

Tech Mahindra Q2 net profit up 32.7% at ₹1,585.6 crore; board proposes 1:1 bonus and ₹15 interim dividend

The IT services company's September-quarter profit grew 32.7 per cent from a year earlier, and its board proposed the first bonus share issue since 2015.

By Economy Desk

Updated 4 hours ago · 2 min read

Tech Mahindra office in Bengaluru. Photo: Gorlono / Wikimedia Commons, CC0

Consolidated net profit at Tech Mahindra climbed 32.7 per cent year-on-year to ₹1,585.6 crore in the July–September quarter (Q2 FY27), against ₹1,194.5 crore in the corresponding period last year, the company said on 15 October. Alongside the results, its board announced a ₹15-per-share interim dividend and recommended a 1:1 bonus issue.

The quarter in figures

Revenue from operations rose 15.6 per cent to ₹16,180.2 crore, compared with ₹13,994.9 crore a year ago
EBIT grew 40.5 per cent to ₹2,387 crore; the EBIT margin widened by roughly 260 basis points to 14.8 per cent (Business Today)
Net profit margin improved by 130 basis points to 9.8 per cent
Diluted earnings per share stood at ₹17.84
Total contract value of new deals was $1,023 million, a 25.4 per cent increase over the previous year
Employees numbered 1,52,206, and IT attrition over the last twelve months was 11.7 per cent

Details of the bonus and dividend

Under the proposal, shareholders would get one bonus share with a face value of ₹5 for each ₹5 share they already own, once the issue is cleared by shareholders through a postal ballot. Business Today said this would be Tech Mahindra’s first bonus issue since March 2015. The Economic Times reported that the bonus record date is yet to be decided and will be communicated separately. The company has also proposed lifting its authorised share capital from ₹924.3 crore to ₹1,000 crore.

FY27 interim dividend of ₹15 per share, equivalent to 300 per cent of the ₹5 face value
Record date for the dividend: Friday, 23 October 2026
To be paid by 13 November 2026 at the latest (Economic Times)

What management said, and how the stock moved

According to the Economic Times, CEO Mohit Joshi highlighted “deal wins exceeding $1 billion in each of the last four quarters,” and CFO Rohit Anand noted that margins had grown “for the twelfth consecutive quarter, reflecting disciplined execution.”

The company released its numbers once trading had ended for the day. On Thursday, the stock finished around ₹1,650 on the NSE, a gain of 4.75 per cent over its prior close of ₹1,575.20, which valued Tech Mahindra at roughly ₹1,61,726 crore, the Economic Times said. Business Today reported the closing price as ₹1,648.70.

Sources: Business Today, Economic Times via inkl

Share this story