Indian information technology services giant Tech Mahindra exceeded Wall Street expectations for quarterly revenue on Wednesday, marking the company’s strongest performance in more than a year with growth spanning nearly all business divisions.
The company reported consolidated revenue of 150.76 billion rupees ($1.61 billion) for the quarter ending March 31, representing a 12.6% increase compared to the same period last year. This marked Tech Mahindra’s first double-digit revenue expansion since March 2023, surpassing analyst projections of 147.77 billion rupees according to LSEG data.
Following the earnings announcement, Tech Mahindra’s stock price recovered from earlier losses, closing flat at 1,501.80 rupees after being down 6% prior to the results release.
The Pune-headquartered company saw particularly strong performance in its core communications division, which accounts for approximately one-third of total revenue and expanded 5.6% year-over-year. This growth occurred despite concerns from competitor HCLTech about reduced discretionary spending among telecommunications clients.
Currency fluctuations provided additional support to earnings, as the Indian rupee weakened 4% against the U.S. dollar during the quarter. Software services firms typically benefit from rupee depreciation since they invoice clients in foreign currencies.
Geographically, the Americas region delivered 7.7% revenue growth, while European markets contributed 7.4% expansion compared to the previous year.
Net profit climbed 16% to 13.54 billion rupees, though this figure fell short of analyst expectations of 14.92 billion rupees.
Tech Mahindra secured $1.07 billion in new contract bookings for the fourth quarter, a significant increase from $798 million in the same period last year. Notable wins included a five-year agreement with European telecommunications provider Orange Business.
The results contrast with mixed performance across India’s IT sector, where industry leader Tata Consultancy Services beat earnings expectations but recorded a rare annual revenue decline in dollar terms. Meanwhile, competitors Wipro and HCLTech fell short of estimates due to delayed project launches, reduced client spending, and customer-related challenges.
