Tech Mahindra's Q4 Profit Skyrockets 77% to ₹1,167 Crore, Announces Final Dividend!

Tech Mahindra has reported an impressive 76.5% surge in consolidated net profit, reaching Rs 1,166.7 crore for the March quarter of FY25. This significant growth comes alongside a 3.5% increase in margins, showcasing the company’s robust performance. In the same quarter last year, the IT giant recorded a profit of Rs 661 crore. This upward trajectory reflects Tech Mahindra’s strategic initiatives and market positioning.

Strong Deal Wins Propel Growth

During this quarter, Tech Mahindra secured new contracts valued at USD 798 million, approximately Rs 6,800 crore. When looking at the entire fiscal year, the total deal value soared to USD 2.7 billion (around Rs 23,000 crore). According to Tech Mahindra’s CEO and Managing Director, Mohit Joshi, these wins signify a 42% year-on-year increase, underscoring the strength of their client relationships and the effectiveness of their transformation efforts.

Key Highlights:
- Quarterly profit: Rs 1,166.7 crore
- Annual profit: Rs 4,251.5 crore (up 80% from last year)
- New deals in FY25: USD 2.7 billion

Revenue Growth Across Segments

For the March quarter, Tech Mahindra’s revenue from operations climbed to Rs 13,384 crore, a rise from Rs 12,871.3 crore in the same period last year. The communication sector remained the largest contributor to revenue, while the retail, transport, and logistics verticals experienced the most significant growth at about 10%.

Commitment to Shareholders and Operational Excellence

For the fiscal year ending March 31, 2025, Tech Mahindra achieved remarkable operational efficiency, resulting in a 60% increase in operating profit. According to Rohit Anand, the Chief Financial Officer, the company raised its dividend per share by 12.5% and returned 85% of its free cash flow to shareholders, reflecting a strong commitment to sustainable capital allocation.

Annual revenue details:
- FY25 revenue: Rs 52,988.3 crore (up 2% from FY24)
- Total workforce: Decreased by 3,276 to 1,48,731 at the end of FY25

In summary, Tech Mahindra’s strategic investments and operational efficiencies have not only bolstered its financial performance but have also set the stage for future growth. With a renewed focus on client partnerships and innovative solutions, Tech Mahindra is well-poised for continued success in the dynamic IT landscape.