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Tech Mahindra reports 80.3% growth in PAT to Rs. 4,252 Cr in FY25

FY25 EBIT Margins expand 360 bps YoY; Board recommends final dividend @ Rs. 30 per share

 

Tech Mahindra (NSE: TECHM), a leading global provider of technology consulting and digital solutions to enterprises across industries announced the audited consolidated financial results for its quarter and year ended March 31, 2025.

Financial highlights for the quarter (USD)
  • Revenue at USD 1,549 mn; down 1.2% QoQ, flat YoY
    • Revenue declined by 1.5% QoQ, growth by 0.3% YoY in constant currency terms
  • EBIT at USD 163 mn; up 2.8% QoQ, up 43.6% YoY
  • EBIT Margin 10.5%; up 40 bps QoQ, up 320 bps YoY
  • Profit after tax (PAT) at USD 136 mn; up 17.3% QoQ, up 70.8% YoY
  • PAT Margin 8.7%; up 130 bps QoQ, up 350 bps YoY
  • Free cash flow at USD 150 mn
  • New deal wins TCV USD 798 mn
Financial highlights for the quarter (₹)
  • Revenue at ₹ 13,384 crores; up 0.7% QoQ, up 4.0% YoY
  • EBIT at ₹ 1,405 crores; up 4.1% QoQ, up 48.5% YoY
  • Consolidated PAT at ₹ 1,167 crores; up 18.7% QoQ, up 76.5% YoY
  • Diluted Earnings per share (EPS) at ₹ 13.15
Financial highlights for the year (USD)
  • Revenue at USD 6,264 mn; down 0.2% YoY
    • Revenue grew by 0.3% YoY in constant currency terms
  • EBIT at USD 607 mn; up 60.0% YoY
  • EBIT Margin 9.7%; up 360 bps YoY
  • Profit after tax (PAT) at USD 502 mn; up 76.7% YoY
  • PAT Margin 8.0%; up 350 bps YoY
  • Free cash flow at USD 613 mn
  • New deal wins TCV USD 2.7 bn
Financial highlights for the year (₹)
  • Revenue at ₹ 52,988 crores; up 1.9% YoY
  • EBIT at ₹ 5,138 crores; up 63.3% YoY
  • Consolidated PAT at ₹ 4,252 crores; up 80.3% YoY
  • Diluted Earnings per share (EPS) at ₹ 47.91
Other Highlights
  • Total headcount at 148,731; down 1,757 QoQ, up 3,276 YoY
  • LTM IT attrition at 11.8%
  • Days of Sales Outstanding 88 days; same as Q3, down 4 days YoY
  • Cash and Cash Equivalent at the end of the quarter ₹ 7,656 crores
  • Final Dividend recommended @ Rs. 30 per share; Total Dividend for the year @ Rs. 45 per share

 

Mohit Joshi, CEO and Managing Director, Tech Mahindra , said,

 “This year, we laid a strong foundation for our transformation journey. Through strategic investments in our people, leadership, and capabilities, we have positioned ourselves to accelerate our strategic roadmap. Our deal wins at $2.7 billion, reflect a 42% year-on-year increase and are a clear validation of the depth of our client partnerships.”

Rohit Anand, Chief Financial Officer, Tech Mahindra, said,

“This year, we delivered operational excellence by achieving a 60% increase in operating profit through strong execution, operational leverage, and cost management. We raised our dividend per share by 12.5% and returned 85% of our free cash flow to shareholders, reflecting our commitment to capital allocation policy.

Key Deal Wins
  • Tech Mahindra signed a Lab asset takeover deal with a major Tier-1 Telco in US to further strengthen its Wireless Device Test Labs and Engineering business. This deal positions Tech Mahindra as one of the single largest one stop device test and certification lab for the US market with ability to support global smartphone OEM’s, IOT module makers and chipset manufacturers focused on launching 5G/ Next-gen wireless enabled devices.
  • Tech Mahindra secured a milestone deal in the Compute Infrastructure space with a leading US-based aerospace company. The strategic engagement involves managing the client’s compute instances using advanced technologies like Containers-as-a-Service (CaaS) and Platform-as-a-Service (PaaS), highlighting our deep expertise in infrastructure services and further strengthening our presence in the next-gen infrastructure domain.
  • Tech Mahindra was selected by a global leader in enterprise applications to provide Managed TechOps Services for the end customers of its flagship enterprise platform. TechM will leverage its Digital Enterprise Applications, Cloud & Infra Services, Next-Gen Services and Engineering Services capabilities to cover the entire lifecycle of their Private Cloud Infrastructure — including Build, Migrate, Operate, and Decommission, enabling scale, cost reduction and efficiency gains without compromising quality.
  • Tech Mahindra was selected by a leading Americas based Telco to enhance customer experience, reduce churn and improve efficiencies across its wireless and wireline service offerings.
  • Tech Mahindra was selected by a US based healthcare technology provider, providing public health solutions to the Medicaid population for a CMS Interoperability mandate. TechM will be the reseller, implementation, and support partner of the SaaS interoperability solution, helping the client onboard their customers seamlessly and there by manage the mandates required by CMS.
  • Tech Mahindra was selected by a leading retailer in the US to serve as a strategic extension of its technology team. TechM to establish a Global Engineering Center for Data and Insights, that will act as a hub to implement advanced analytics and AI driven programs for the client. TechM will leverage its Next-Gen Services, ADMS and Cloud & Infra capabilities to provide innovative analytics and drive data-led decision-making.
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