Tech Mahindra Q2 Results: Profit Up 5%, Attrition Rate Rises To 12.8%

Tech Mahindra Ltd.'s profit for the July-September period rose 5% on a sequential basis, missing analysts' estimates.

The software services provider's bottom line stood at Rs 1,194.5 crore during the second quarter of the financial year ending March 2026, compared to Rs 1,140 crore clocked in the preceding quarter, according to its notification to the exchanges on Tuesday. Analysts tracked by Bloomberg had pegged the profit at Rs 1,285 crore.

Revenue for the current quarter rose 4.8% to Rs 13,995 crore, against a relatively flat top line at Rs 13,351 crore for the quarter ended June. Bloomberg analysts had estimated a revenue of Rs 13,351 crore.

Earnings before interest and tax rose 15% to Rs 1,699.3 crore against Rs 1,477.1 crore in the previous quarter, while margin expanded to Rs 12.1% sequentially, beating analysts' estimates.

The margin expansion happened on the back of currency tailwinds, productivity and increase in volume, according to Tech Mahindra's CFO Rohit Anand.

The last-12-month IT attrition rate increased to 12.8% in the second quarter of FY26, against 12.6% in quarter ended June 30. The company reported the highest constant-currency growth in the last 10 quarters at 1.6%. The CC growth stood at 1.4% in the previous quarter.

The dollar revenue rose 1.4% sequentially but fell 0.2% year-on-year to $1,586 million

Apart from this, the IT giant also announced a second interim dividend of Rs 15 per equity share for fiscal 2026. The company announced a distribution of nearly Rs 1,468 crore to shareholders.

The board has fixed Oct. 21 as the record date for the purpose of dividend payment. The company said it will pay the interim dividend on or before Nov. 12.

The earnings were announced after market hours. The stock settled 1.18% higher at Rs 1,468 apiece on the NSE, compared to a 0.32% advance in the benchmark Nifty 50. Tech Mahindra's shares have fallen 13.26% in the last 12 months and 13.96% year-to-date.

Out of the 46 analysts tracking the company, 23 maintain a 'buy' rating, nine recommend a 'hold' and 14 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 1,588.93 implies an upside of 8.2%.