Shares of Tech Mahindra staged a sharp recovery on Wednesday, April 22, bouncing nearly 6% from intraday lows after the company reported its March quarter (Q4 FY26) results. The numbers came broadly in line with, and in some cases slightly ahead of, market expectations, helping sentiment improve during the session.
The stock initially saw selling pressure, but investor confidence returned as the earnings print reflected steady execution, stable margins, and healthy deal wins.
Revenue Growth Remains Steady Across Metrics
Tech Mahindra reported revenue of $1,625 million for the March quarter, marking a 0.9% sequential increase, slightly above estimates of $1,624 million.
In rupee terms, revenue stood at ₹15,076 crore, beating expectations of ₹14,804 crore and registering a 4.7% quarter-on-quarter growth.
On a constant currency basis, growth came in at 0.6% QoQ, closely aligned with estimates of 0.5%, indicating stable underlying business momentum despite global macro challenges.
Margins Improve, EBIT In-Line With Estimates
The company reported EBIT of ₹2,084 crore, broadly in line with market expectations of ₹2,035 crore.
More importantly, EBIT margin expanded to 13.8%, reflecting a 70 basis point improvement from 13.1% in the previous quarter. The margin expansion signals better cost control and operational efficiency, which supported the stock’s recovery.
Deal Wins Cross $1 Billion Mark
Tech Mahindra recorded new deal wins worth $1,073 million during the quarter, reflecting a 34.5% year-on-year growth.
However, on a sequential basis, deal wins were slightly lower by 2.1%, indicating some moderation in near-term order inflows. Despite this, the strong annual growth highlights sustained client demand and pipeline strength.
Dividend Announcement Boosts Sentiment
The board approved a final dividend of ₹36 per share, subject to shareholder approval. The announcement added to positive sentiment, especially for income-focused investors.
Management Commentary
CEO Mohit Joshi stated that the company remains focused on disciplined scaling and execution. Management reiterated confidence in delivering on its strategic goals and staying on track for its FY27 commitments.