Tech Mahindra Q2 Results October 15, 2026: PAT Up 32.7% to ₹1,586 Cr, 1:1 Bonus Declared

Tech Mahindra reported after market hours on Thursday, and its September quarter beat street estimates on both profit and dollar revenue. The Tech Mahindra Q2 results October 15 filing showed consolidated profit after tax up 32.7% year-on-year to ₹1,586 crore, a twelfth straight quarter of margin expansion, deal wins above $1 billion again, and a 1:1 bonus issue alongside a ₹15 interim dividend. Below we walk through the numbers from the company’s Q2 FY27 press release and audited standalone results, compare them with what analysts expected, and spell out what the margin story and the bonus mean for shareholders. If you want the framework behind this kind of reading, our guide on how to analyse quarterly results of a company covers it step by step.

Tech Mahindra Q2 results October 15: the board’s print

The Board met on 15 October 2026 and approved audited consolidated results for the quarter ended 30 September 2026. The press release listed these rupee highlights for Q2 FY27:

• Revenue of ₹16,180 crore, up 3.0% quarter-on-quarter and 15.6% year-on-year
• EBIT of ₹2,387 crore, up 5.4% quarter-on-quarter and 40.5% year-on-year
• Profit after tax of ₹1,586 crore, up 32.7% year-on-year
• Diluted EPS of ₹17.84
• Interim dividend of ₹15 per share

In dollar terms, the company reported:

• Revenue of $1,693 million, up 2.0% quarter-on-quarter and 6.8% year-on-year in reported terms
• Constant-currency growth of 2.4% quarter-on-quarter and 7.2% year-on-year
• EBIT of $250 million, up 4.9% quarter-on-quarter and 30.4% year-on-year
• EBIT margin of 14.8%, up about 40 basis points quarter-on-quarter and about 260 basis points year-on-year
• PAT of $166 million, up 23.2% year-on-year, with a PAT margin of 9.8%
• New deal wins (TCV) of $1,023 million, up 25.4% year-on-year

The consolidated P&L table in the same release (figures in ₹ million) ties out to those headlines. Revenue was 161,802 against 157,119 in Q1 FY27 and 139,949 in Q2 FY26, and profit after tax was 15,856 against 14,651 and 11,945. On those figures, quarter-on-quarter profit growth works out to 8.2%, which is the sequential rise that CNBC-TV18 and The Hindu both reported.

Street estimates versus the actual beat

According to CNBC-TV18, its poll had pencilled in a 7.5% sequential rise in net profit to ₹1,576 crore, so the reported ₹1,586 crore was a modest beat. The bigger surprise was on the top line. The street had estimated dollar revenue at $1,682 million, a 1.3% sequential increase, with constant-currency growth of 1.4%. Tech Mahindra delivered $1,693 million, up 2.0% from $1,660 million in Q1 FY27, and 2.4% growth in constant currency.

CNBC-TV18 also noted the factors behind the sequential growth: the continued ramp-up of the large Orange telecom deal won in the fourth quarter of FY26, and roughly two months of revenue from the consolidation of Avant Techno Solutions. Partly offsetting that was the normalisation of a one-time manufacturing benefit of 1% to 1.3% that had lifted the June quarter. In other words, the quarter absorbed a tougher base and still grew faster than expected — which matters more than the size of the profit beat.

The beat came from the top line, not from one-offs: dollar revenue grew 2.0% against a 1.3% estimate even after a one-time manufacturing benefit from the June quarter dropped out.

Twelfth straight quarter of margin expansion

CFO Rohit Anand said in the release that margins expanded for the twelfth consecutive quarter. The consolidated table shows how that played out at each level of the P&L. The ratios below are calculated from the ₹ million figures in the press release:

Two things stand out. First, of the roughly 2.3 percentage-point year-on-year rise in EBITDA margin, about 1.4 points came from the gross level, where cost of services fell as a share of revenue, and about 0.9 points from tighter SG&A, which dropped from 13.7% to 12.8% of revenue. That mix suggests better delivery economics and operating leverage rather than a single cost cut. Second, CNBC-TV18 reported that the 14.8% EBIT margin moves the company closer to its target of 15% by the end of FY27, so investors will watch the next two quarters to see whether that target is reached or exceeded.

Further down the P&L, other income was a small negative ₹7.4 crore (minus 74 ₹ million) after a negative ₹106.4 crore in Q1 FY27, against a positive ₹40 crore a year earlier. Interest expense eased to ₹83.6 crore from ₹111.3 crore in Q1. The effective tax rate, calculated as tax provision over profit before tax, rose to about 29.9% from about 27.2% in Q1 FY27 and about 27.6% a year earlier. That higher tax rate is why PAT grew 32.7% year-on-year while profit before tax grew about 38.4% (22,961 against 16,593 ₹ million).

Standalone PAT above consol: the other-income swing

The audited standalone results, which cover Tech Mahindra Limited without its subsidiaries, show revenue from operations of ₹13,742.4 crore (137,424 ₹ million), against ₹13,218.6 crore in Q1 FY27 and ₹12,067.6 crore a year earlier. Standalone profit after tax was ₹1,613.8 crore, against ₹1,137.9 crore in the June quarter and ₹1,175.7 crore a year ago.

Readers comparing the two sets of numbers should note that the standalone profit is higher than the consolidated ₹1,586 crore, and the sequential jump is much larger. A big part of the difference is standalone other income, which swung to a positive ₹537.6 crore from a negative ₹137.3 crore in Q1 FY27. The standalone cash flow statement also lists dividend income and distributions from subsidiaries among its items, and such intra-group flows drop out on consolidation. For valuation and comparison with peers, the consolidated figures are the right base, which is why this post leads with them.

Deal wins above a billion, BFSI/healthcare growth and headcount

New deal wins came in at $1,023 million in total contract value, up 25.4% year-on-year. CEO Mohit Joshi said in the release that deal wins have exceeded $1 billion in each of the last four quarters. The release lists wins across insurance, logistics, telecom, enterprise software, specialty chemicals, ASEAN wealth management and European energy, including a five-year managed services engagement with a leading Australian telecom operator.

On verticals, CNBC-TV18 reported that the banking, financial services and insurance business grew 4.6% in the quarter and healthcare grew 6.6%, while The Hindu said the year-on-year profit growth was driven primarily by the manufacturing and communications verticals.

Other operating metrics from the press release:

• Total headcount of 152,206, which The Hindu reported as a net addition of 5,446 employees in the quarter
• Last-twelve-month IT attrition of 11.7%
• Free cash flow of $135 million
• Days sales outstanding of 88 days
• Cash and cash equivalents of ₹7,330 crore at quarter-end

CNBC-TV18 also reported a return on capital employed of 31.2% for Q2 FY27, citing the investor presentation. On US visas, Joshi told The Hindu that H-1B visa holders account for about 1% of the workforce and that nearly 70% of US employees are locally hired, which the company presented as a buffer against tighter visa rules.

Adding over 5,000 people while expanding margins is a sign that demand, not cost-cutting, is driving this phase of the turnaround.

₹15 interim dividend and the 1:1 bonus

The standalone results notes say the Board declared an interim dividend of ₹15 per equity share on a face value of ₹5 each, which is 300% of face value. The Board also approved a bonus issue in the ratio of 1:1, meaning one bonus equity share of ₹5 for every fully paid-up share held on the record date, subject to shareholder approval and other regulatory requirements. The record date for the bonus was not stated in the results notes.

A bonus issue does not change the value of a shareholder’s holding on its own. After the record date, the number of shares doubles and the share price adjusts to roughly half, so per-share metrics such as EPS and dividend per share will also be restated on the larger share count. What a bonus does signal is the Board’s confidence in reserves and future earnings, and a lower per-share price can improve liquidity for smaller investors. For the day-to-day market backdrop around results like these, see our Stock Market Today India hub.

Pre-results stock move and the IT peer read-across

The results came after market hours. CNBC-TV18 reported that Tech Mahindra shares ended 4.75% higher at ₹1,650 on Thursday ahead of the announcement, a move that pulled the stock into positive territory for the year, and that the stock has advanced over 13% over the last 12 months. Friday’s session will be the first chance for the market to price in the beat and the bonus.

The print lands in the same results week as Wipro, whose numbers we broke down in our Wipro Q2 results October 15 analysis. Reading the two side by side is useful: Tech Mahindra’s 2.4% sequential constant-currency growth and fourth straight quarter of $1 billion-plus deal wins give investors a clear benchmark for how other mid-tier IT names report over the coming days.

What to track after Tech Mahindra Q2 results October 15

• The 15% EBIT margin target: at 14.8%, the company is about 20 basis points away from the FY27 goal CNBC-TV18 cited. Wage hikes, currency moves and integration costs from acquisitions such as Avant Techno Solutions could affect the path.
• Revenue conversion of deal wins: four straight quarters of $1 billion-plus TCV should show up in revenue as large deals like Orange ramp up. Watch whether dollar growth holds near 2% a quarter.
• Tax rate: the effective rate rose to about 29.9% this quarter. If it stays elevated, PAT growth will lag operating profit growth.
• Bonus timeline: the record date and shareholder approval process will set when the share count doubles and the price adjusts.
• Cash conversion: free cash flow of $135 million against PAT of $166 million, with DSO at 88 days, is worth tracking as growth picks up.

Where the Tech Mahindra Q2 print leaves shareholders

The Tech Mahindra Q2 results October 15 print was a clean beat on revenue and a small beat on profit, backed by a twelfth straight quarter of margin expansion and steady $1 billion-plus deal wins. The margin gains came from both delivery costs and overheads, and headcount grew alongside them. The bonus and dividend are shareholder-friendly signals, but the real test is whether the company crosses its 15% EBIT margin target while keeping dollar growth near current levels. The figures in this post come from the company’s filings and the linked coverage; treat them as a starting point for your own research, not as investment advice.