Tech Mahindra shares climb over 3 per cent after strong June-quarter results
Tech Mahindra shares rose over 3 per cent after the company reported a 28.4 per cent increase in consolidated net profit for the June quarter. The IT firm also expressed confidence in sustaining growth, backed by a strong order book and robust demand
New Delhi: Shares of IT company Tech Mahindra on Friday climbed over 3 per cent after the firm reported a 28.4 per cent rise in consolidated net profit for the June quarter to Rs 1,465 crore and expressed confidence about the demand environment.
The stock gained 3.41 per cent to Rs 1,562.90 on the BSE.
At the NSE, the stock climbed 3.48 per cent to Rs 1,562.90.
India’s fifth-largest IT services firm on Thursday said growth in the June quarter was broad-based, led by manufacturing and financial services, with strong momentum also in healthcare and retail.
Tech Mahindra’s management expressed confidence about a “sustained” performance through the rest of the year, provided the macroeconomic situation does not change dramatically.
The company said its strong order book, long-standing client relationships and robust first-quarter performance give it confidence in sustaining growth through the remainder of the year and outperforming the peer average.
Tech Mahindra’s revenue from operations rose 17.7 per cent to about Rs 15,712 crore during the quarter ended June. In dollar terms, the Q1FY27 revenue at USD 1,660 million was up 2.2 per cent sequentially and rose 6.1 per cent year-on-year in reported terms.
“We have delivered an extremely strong quarter, clearly industry-leading growth, way ahead of our consensus estimates. So clearly, we’re seeing a positive demand environment from the company perspective…all the hard work that has gone into capability building, hiring talent, winning new clients, winning consolidation deals is paying off for us,” Mohit Joshi, CEO and Managing Director, Tech Mahindra, said during the Q1 results briefing.
Tech Mahindra cited the three-year turnaround plan it had presented in April 2024 with clear goals and measurable markers for success and said it is seeing increased benefits from the investments and actions taken over the past few years.
“Most recently, our growth has begun to move ahead of the peer average…we had said that in the third year of transformation, we will pivot strongly to growth, and our numbers show just that,” Joshi said.
