New Delhi, Oct. 14 -- Indian IT services firm Tech Mahindra Ltd on Tuesday reported a 5% sequential rise in consolidated net profit for the quarter ended September 30, 2025, driven by margin expansion and strong traction in artificial intelligence-led deal wins.
The company posted a net profit of Rs.1,194.5 crore, up from Rs.1,140.6 crore in the previous quarter, while revenue rose 4.8% to Rs.13,994.9 crore from Rs.13,351.2 crore. Earnings before interest and tax (EBIT) climbed 15% sequentially to Rs.1,699.3 crore, with operating margins improving 100 basis points to 12.1%.
The board also announced an interim dividend of Rs.15 per share. In dollar terms, revenue stood at $1,586 million, up 1.4% sequentially and nearly flat year-on-year. Attrition for the quarter declined further to 12.8%, one of the lowest among tier-1 IT peers, while total headcount stood at 152,714, down by 1,559 year-on-year.
AI-led growth and new platform launches
Mohit Joshi, Chief Executive Officer and Managing Director, said the quarter reflected "broad-based growth" underpinned by the company's execution focus and investments in AI-driven transformation.
"We launched TechM Orion, our next-generation AI platform, and TechM Orion Marketplace to help enterprises accelerate autonomous transformation," Joshi said. "Being recognized by industry analysts reinforces our leadership in advancing next-generation AI."
Tech Mahindra also launched its "AI Delivered Right" framework during the first half of FY2025, focusing on responsible, transparent, and cost-optimised AI adoption. The initiative underscores the company's emphasis on agentic AI-autonomous systems that can act, adapt, and collaborate rather than merely assist.
Rohit Anand, Chief Financial Officer, said the company's strong operational performance had led to its eighth consecutive quarter of margin expansion. "Our deal TCV is up 57% year-on-year on a last twelve months basis, supported by strong deal conversions," Anand said.
Key deal wins in Q2
The company secured new deals worth $816 million in total contract value (TCV) during the quarter, spanning telecom, manufacturing, logistics, insurance, and fintech sectors.
Among its marquee wins is a leading European telecom operator that chose Tech Mahindra as its strategic partner for an enterprise-wide autonomous operations programme, a global logistics leader signed a multi-year agreement to drive AI-led efficiency and transition to a productized IT model. A semiconductor equipment manufacturer selected Tech Mahindra for enterprise application transformation across SAP, data, and AI systems.
A life and health insurer in Asia-Pacific awarded a multi-year engagement to modernise core platforms through AI-led automation and cloud transformation. Furthermore, a European fintech and HR solutions provider partnered with Tech Mahindra to establish a new offshore delivery centre in India under a Build-Operate-Transfer model.
Expanding AI ecosystem and global collaborations
During the quarter, Tech Mahindra deepened its ecosystem partnerships to scale enterprise AI adoption. The company tied up with NVIDIA to combine its integration expertise with NVIDIA's accelerated computing stack, enabling faster decision-making and autonomous operations for global enterprises.
It also entered a multi-year collaboration with AMD to integrate high-performance compute infrastructure with its Cloud BlazeTech platform, supporting hybrid cloud and AI workloads. Another key alliance with J.P. Morgan Payments aims to modernize global payment infrastructure using real-time tracking and AI-powered dashboards.
Tech Mahindra was also recognised by the Government of India as a key contributor to the national AI Mission, aligning with efforts to foster ethical and responsible AI adoption. Over 79,000 employees have been trained in AI, including advanced certifications across industries.
Outlook for Q3 and Q4
With continued focus on agentic AI, automation, and hybrid cloud, Tech Mahindra is positioning itself as a transformation partner for enterprises pursuing autonomy and digital efficiency. "Our AI portfolio, powered by over 300 intelligent agents, is enabling hybrid workforces across sectors," Joshi said.
According to industry analysts, as the IT industry pivots toward autonomous and data-driven operations, Tech Mahindra's multi-pronged strategy-from AI platforms and ecosystem alliances to efficiency-driven execution-appears to be paying off, even as macro uncertainties keep demand recovery uneven across markets.
Published by HT Digital Content Services with permission from TechCircle.