Tech Mahindra wrapped up fiscal year 2025 with a significant surge in profit, signaling a potentially rewarding period for its investors. The technology consulting and digital solutions giant announced its audited consolidated financial results for the quarter and year ending March 31, 2025, revealing a substantial jump in its bottom line and a generous final dividend recommendation.
For the full fiscal year 2025, Tech Mahindra reported a consolidated Profit After Tax (PAT) of ₹4,252 crores, an impressive 80.3% increase compared to the previous year. This translates to a diluted Earnings Per Share (EPS) of ₹47.91. The company’s revenue for the year stood at ₹52,988 crores, a 1.9% rise year-on-year. Operating profit (EBIT) for FY25 also saw a strong increase of 63.3% to ₹5,138 crores, with the EBIT margin expanding by 360 basis points to 9.7%.
Looking at the January to March 2025 quarter specifically, the positive momentum continued. Consolidated PAT for the quarter was ₹1,167 crores, up 76.5% from the same period last year and an 18.7% increase sequentially. Revenue for the quarter was ₹13,384 crores, a 4.0% rise year-on-year and 0.7% higher quarter-on-quarter. The EBIT for the quarter was ₹1,405 crores, a substantial 48.5% jump year-on-year and 4.1% increase quarter-on-quarter, pushing the EBIT margin to 10.5%.
The company’s focus on operational excellence played a key role in this performance. Rohit Anand, Chief Financial Officer, highlighted achieving a 60% increase in operating profit for the year through strong execution, operational leverage, and cost management. He also pointed out the company’s commitment to its capital allocation policy, returning 85% of free cash flow to shareholders and increasing the dividend per share by 12.5%.
Speaking on the results, Mohit Joshi, CEO and Managing Director, stated that the year laid a strong foundation for the company’s transformation journey. He emphasized strategic investments in people, leadership, and capabilities to accelerate their roadmap. Joshi also pointed to the significant deal wins, totaling $2.7 billion for the year, a 42% increase year-on-year, as a clear validation of the depth of their client partnerships.
Tech Mahindra secured several notable deals during this period. These include a Lab asset takeover with a major US Tier-1 Telco to strengthen its wireless device test labs, a compute infrastructure deal with a leading US-based aerospace company leveraging advanced technologies, and selection by a global leader in enterprise applications for managed TechOps services. The company also secured deals with Americas-based Telcos to enhance customer experience, a US healthcare technology provider for a CMS interoperability mandate, and a leading US retailer to establish a Global Engineering Center for Data and Insights.
Beyond the financials and deal wins, Tech Mahindra made strides in strategic areas. The company launched ‘TechM Consulting’ to accelerate innovation and deliver measurable business impact, inaugurated a Manufacturing Xperience Centre in Chennai for prototyping AI-driven solutions, and built a pharmacovigilance autonomous solution with NVIDIA AI software. Strategic partnerships were expanded with Google Cloud for AI adoption and with Qualcomm Technologies for integrating TechM’s IndusQ LLM into Qualcomm AI Hub. The company also joined the AI-RAN Alliance and secured a licensing agreement for Cricket Wireless’s Point of Sale system. Collaborations with Optus, Microsoft, and Databricks for a unified data platform and with BEET for industrial IoT were also key highlights. A Memorandum of Understanding with The Open University in the UK aims to drive innovation and skills development.
The company also received several awards and recognitions throughout the year, including Guidewire PartnerConnect specializations, formal validation for its Net-Zero targets by SBTi, and recognition as ‘India’s Most Sustainable Business of the Year’ at the BW Sustainable World Conclave. Tech Mahindra was also listed in the Top 5% for the IT Services sector in the S&P Global Sustainability Yearbook 2025 and recognized among the Top 10 strongest IT Services brands globally by Brand Finance. Analyst firms like ISG, Everest Group, Avasant, and QKS Group also recognized Tech Mahindra as a Leader in various service areas, including SAP Ecosystem Partners, ServiceNow Ecosystem Partners, Salesforce Ecosystem Partners, Industry 4.0 Services, and Digital Engineering Services.
The company’s headcount at the end of March 2025 stood at 148,731. The LTM IT attrition rate was 11.8%. Days of Sales Outstanding remained stable at 88 days. Cash and Cash Equivalent at the end of the quarter was ₹7,656 crores.
The board recommended a final dividend of ₹30 per share, bringing the total dividend for the year to ₹45 per share, a potential bright spot for shareholders.
