New Delhi, Apr 22 (PTI) IT firm Tech Mahindra on Wednesday reported a 16 per cent growth in its consolidated net profit to Rs 1,353.8 crore for the January-March quarter of FY26.
The Mahindra Group company had registered a consolidated net profit (attributable to owners of the company) of Rs 1,166.7 crore in the same period of FY25.
Its revenue from operations rose 12.6 per cent to Rs 15,076.1 crore in Q4 FY26 compared to Rs 13,384 crore in the year-ago period.
On a sequential basis, profit and revenue jumped 20.7 and 4.7 per cent, respectively.
The manufacturing vertical posted the highest growth in Q4 FY26, surging 11.8 per cent year-on-year, while communications grew 5.6 per cent.
Technology and media & entertainment rose 6.6 per cent; Retail, Logistics & Transport 6.2 per cent; BFSI 4.7 per cent; and Healthcare & Lifesciences inched up 4.7 per cent.
For the full fiscal year of 2025-26, Tech Mahindra’s profit climbed 13.15 per cent to Rs 4,810.9 crore from Rs 4,251.5 crore in FY25.
In FY26, its revenue from operations increased 7.2 per cent to Rs 56,815.4 crore.
"We are accelerating our transition to an AI-led organisation, embedding AI across services and expanding our capabilities to enhance value delivery for our clients. This is reflected in our highest deal wins in recent years, including consecutive quarters exceeding USD 1 billion. We remain focused on scaling with discipline and are on track to deliver our FY27 commitments," Tech Mahindra CEO and MD Mohit Joshi said.
In FY26, Tech Mahindra bagged deals worth USD 3,794 million, the highest in the past five years.
The Americas, representing the company's largest market with a 49.7 per cent revenue share, recorded 7.7 per cent growth in the fourth quarter of the last financial year. However, the region achieved only 0.2 per cent growth over the full FY26 period.
Europe, which accounts for 26 per cent of the company's revenue, posted 7.4 per cent year-on-year growth in Q4 FY26 and an 8.9 per cent growth in FY26.
The rest of the world (24.3 per cent share) saw a slight contraction, declining 2.7 per cent during the quarter under review, although it grew 24.4 per cent during the full fiscal year.
"While the global backdrop can still be demanding and geopolitical volatility exists, we are encouraged by the way we have strengthened our client offerings, built added trust, and deepened our client engagement approaches over the last two years," Joshi said.
The company saw a reduction of 817 employees during the fourth quarter of FY26, taking its total headcount to 75,377.
The management dismissed concerns that the rapid integration of artificial intelligence (AI) is leading to revenue deflation or shrinking contract sizes for the IT services firm.
"There is no one sort of standard AI deflation number that I see. We see AI as a huge opportunity for us from a medium to long-term perspective, as it drives clients' modernisation programmes onwards. A lot of the deal wins have been enabled by the AI tooling and AI platforms that we use in TechM. So, there is no AI deflation; there is no constant deflationary number that we see," Joshi said.
The company said the geopolitical crisis in West Asia has not had any meaningful negative impact on its business so far.
While acknowledging that West Asia is a very significant market where Tech Mahindra operates as one of the larger IT vendors, Joshi said the company's overall exposure remains manageable.
"In terms of the overall tech revenue profile, it is not going to be massively needle-moving for us," Joshi explained during the Q4 earnings call, downplaying fears of a direct revenue hit from the region.
The company's board recommended a final dividend of Rs 36 per equity share of face value of Rs 5 each for the financial year ended March 31, 2026.
The final dividend is in addition to the interim dividend of Rs 15 per equity share (face value of Rs 5 each) paid by the company in November 2025.
"FY26 marked the end of the stabilisation phase of our transformation journey, with margins expanding for the 10th consecutive quarter despite a challenging macro environment.
"In line with our disciplined capital allocation framework and commitment to our shareholders, we increased the dividend by over 13 per cent, taking total dividends declared for the year to Rs 51 per share, our highest ever," Rohit Anand, Chief Financial Officer at Tech Mahindra, said.