Tech Mahindra Q4 revenue misses estimates despite profit jump
PUNE, INDIA — Tech Mahindra reported weaker-than-expected Q4 revenue as persistent declines in its communications and hi-tech segments offset marginal growth.
While net profit rose 18.7% year-over-year to ₹1,166.7 crore (US$136.9 million), the IT services firm fell short of analyst revenue forecasts, reflecting ongoing sector challenges.
Revenue underperformance amid sector headwinds
Consolidated earnings for the company amounted to ₹13,384 crore (US$1.57 billion) while missing predicted revenue of ₹13,452 crore (US$1.57 billion).
The company saw a worse-than-expected sequential constant currency revenue drop of 1.5%, which demonstrates increased market challenges in essential business segments.
Despite US$2.7 billion in new deals, weak demand in communication services, a core revenue driver, dragged results.
CEO Mohit Joshi acknowledged foundational restructuring efforts but conceded near-term growth remains uneven.
Cost control drives profitability amid hiring slowdown
Net profit surged 18.7% year-over-year, buoyed by operational efficiencies, with earnings before interest and taxes (EBIT) margins expanding to 10.5%.
The firm recommended a ₹30/share (US$0.35/share) dividend distribution, which added up to total fiscal year 2025 dividends of ₹45/share (US$0.53/share).
The company’s employee numbers decreased by 1,757 staff members in Q4, along with an 11.8% reduction in attrition rate as the organization adopted stricter talent retention approaches during a general hiring slowdown.
While cost discipline aided profits, the workforce reduction signals caution as global IT spending stays muted.
Tech Mahindra recently soared to rank #9 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
