Tech Mahindra reported a 32.7% year-on-year rise in consolidated profit after tax to ₹1,586 crore for the September 2026 quarter. The board also recommended a 1:1 bonus share issue, the company’s first in 11 years, and declared an interim dividend of ₹15 per share.
The IT services company announced the results after market hours on 15 October 2026. Its shares opened higher on 16 October and the stock emerged as the top Sensex gainer in early trade.
Tech Mahindra Q2 FY27 Results at a Glance
Revenue from operations rose 3% from the previous quarter to ₹16,180 crore, compared with ₹15,712 crore in the June quarter. On a yearly basis, revenue grew 15.6%. Profit after tax was up 8.2% from ₹1,465 crore in the previous quarter.
Tech Mahindra Q2 FY27 key numbers
| Metric | Q2 FY27 | Change |
|---|---|---|
| Revenue from operations | ₹16,180 crore | 3% QoQ, 15.6% YoY |
| Consolidated profit after tax | ₹1,586 crore | 8.2% QoQ, 32.7% YoY |
| EBIT | ₹2,387 crore | 5.4% QoQ, 40.5% YoY |
| EBIT margin | 14.8% | 40 bps QoQ, 260 bps YoY |
| Constant currency revenue | $1,693 million | 2.4% QoQ, 7.2% YoY |
| New deal wins (TCV) | $1,023 million | 25.4% YoY |
EBIT stands for earnings before interest and tax, and TCV means total contract value of new deals signed in the quarter. The figures show profit growing much faster than revenue, helped by the margin gain.
Margins, Deals and Cash Flow Behind the Numbers
The EBIT margin of 14.8% compares with 14.4% in the previous quarter. That leaves the company close to the 15% margin target it has set for FY27. Antique Stock Broking noted that management is within about 20 basis points of the target and that the focus is shifting towards growth.
Chief Executive Officer and Managing Director Mohit Joshi said the 7.2% growth in constant currency terms shows the company is sustaining business momentum. He also noted that the company is celebrating its 40th anniversary this quarter.
- Free cash flow for the quarter was $135 million.
- Total headcount was 152,206, and last twelve months IT attrition was 11.7%.
- Cash and cash equivalents stood at ₹7,330 crore at the end of the quarter.
- Basic earnings per share (EPS) came in at ₹17.84.
Constant currency growth of 2.4% quarter on quarter was ahead of the 1.5% that Antique Stock Broking had estimated. Antique and Systematix Institutional Equities both raised their FY28 and FY29 earnings estimates after the results, by amounts between 2% and 5%.
What the 1:1 Bonus Issue Means for Tech Mahindra Shareholders
Under a 1:1 bonus issue, eligible shareholders receive one new fully paid-up share for every share they hold on the record date. The company’s board has recommended the issue, and it needs shareholder approval through a postal ballot. The record date for the bonus will be announced separately.
A bonus issue does not bring fresh money into the company. The shares are created by capitalising amounts from the securities premium account, general reserves, retained earnings or other permitted reserves, based on the audited financial statements for the year ended 31 March 2026. The board also recommended raising the authorised share capital from ₹924.3 crore to ₹1,000 crore.
Tech Mahindra last issued bonus shares in March 2015, also in a 1:1 ratio. Because shares are held electronically, bonus shares are credited to the demat account of eligible shareholders after allotment. Investors who want to be eligible for any future corporate action need to hold shares in a demat account on the relevant record date, so those who do not yet have one may need to open a demat account first.
Interim Dividend of ₹15 and Key Dates for Shareholders
The interim dividend of ₹15 per equity share represents 300% of the face value of ₹5 per share for FY27. The company has fixed 23 October 2026 as the record date for dividend eligibility, and the payment will be made by 13 November 2026 through electronic mode. Tech Mahindra also paid an interim dividend of ₹15 per share in October 2024 and October 2025.
Tech Mahindra corporate action details
| Item | Detail |
|---|---|
| Interim dividend | ₹15 per share (300% of ₹5 face value) |
| Dividend record date | 23 October 2026 |
| Dividend payment | On or before 13 November 2026 |
| Bonus issue | 1:1, subject to postal ballot approval |
| Bonus record date | To be announced separately |
Tech Mahindra Share Price Reaction After the Results
Tech Mahindra shares had slipped nearly 4% on 12 October to ₹1,453.90 ahead of the results. By 15 October the stock had recovered, closing at ₹1,648.70 on the BSE, before the earnings came out. The market capitalisation was about ₹1.62 lakh crore at that level.
On 16 October the shares opened at ₹1,714.95 on the BSE and touched a high of ₹1,738.40, a gain of 5.44% over the previous close. By 9:20 am the stock was trading at ₹1,709.85, up 3.7%. Traders who track earnings reactions on a stock trading app can see how price and volume have moved around the announcement.
What to Watch After Tech Mahindra’s Board Decisions
The next steps are the postal ballot for the bonus issue and the announcement of the bonus record date. The dividend record date of 23 October is already fixed. The company has also said it will disclose its AI-led revenue in the second half of the fiscal year, according to brokerage commentary on the results.
Exchange filings from Tech Mahindra remain the primary source for the exact bonus record date, the postal ballot schedule and the dividend payment mechanics.
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