Tech Mahindra shares declined nearly 2% in early trade after the company reported weaker-than-expected earnings for the first quarter of FY26, both in revenue and net profit.
For the April–June 2025 period, the IT major posted a 1.4% sequential decline in constant currency revenue, underperforming CNBC-TV18’s poll estimate of a 0.7% decline.
In US dollar terms, revenue came in at $1,564 million, marginally lower than the street’s expectation of $1,565 million.
In rupee terms, the company’s revenue stood at ₹13,351 crore, missing estimates of ₹13,392 crore and also falling short of last year’s figure of ₹13,384 crore.
Net profit dropped 2% year-on-year to ₹1,140.6 crore, which was below analysts’ expectations of ₹1,170 crore. It was also lower than the March quarter’s ₹1,167 crore profit.
However, Tech Mahindra saw some relief on the margin front. EBIT for the quarter rose 7% to ₹1,477 crore, compared to ₹1,378 crore in the previous quarter. The EBIT margin improved by 60 basis points, climbing from 10.5% to 11.1%.
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