Tech Mahindra Ltd.Revenue US$1,693 Mn +7.2% CC, EBIT margin 14.8%

Tech Mahindra reported Q2 FY27 revenue of US$1,693 million, up 7.2% year-on-year and 2.4% sequentially in constant currency, or ₹16,180 crore, up 15.6%.

EBIT margin was 14.8%, up 40 basis points sequentially and 260 basis points year-on-year, for a 12th straight quarter of expansion, and management reiterated its 15% target for FY27. Profit after tax was US$166 million, up 23.2%, or ₹1,586 crore. Communications grew 9.5% year-on-year on the Orange ramp-up, retail, travel and logistics grew 9.2%, manufacturing grew 7% despite a 3.9% sequential fall from a European automotive program, and BFSI grew 4.6%.

Deal wins were US$1,023 million. Free cash flow was US$135 million, return on capital employed rose to 31.2%, and the board declared a ₹15 interim dividend and recommended a 1:1 bonus issue. Management said it will start reporting AI revenue with its H2 FY27 disclosures, expects normal seasonality in the second half, and called it too early to set the next three-year plan.