Tech Mahindra Q4 Results: Financial Highlights

The Tech Mahindra Q4 results demonstrate the company’s ability to enhance profitability even in a challenging revenue environment. The standout figure is the 18.6% sequential increase in net profit, reaching ₹1,166 crore for the quarter ending March 2025. While revenue growth remained flat at ₹13,384 crore, the company managed to increase its EBITDA by 3.2% on a quarterly basis to ₹1,867 crore.

The Tech Mahindra Q4 results report attributes the EBITDA growth primarily to strong performance from Comviva (a Tech Mahindra subsidiary) and increased revenue from the Banking, Financial Services, and Insurance (BFSI) sector. This indicates the company’s success in diversifying its revenue streams beyond its traditional telecommunications focus.

Year-on-Year Performance Analysis

Looking at the annual perspective provides even more impressive figures in the Tech Mahindra Q4 results. Compared to the same quarter in the previous year, profit surged by a remarkable 76.5%, while revenue increased by 3.9%. The EBITDA showed significant improvement with a 32.6% year-on-year growth.

In US dollar terms, the yearly comparison in the Tech Mahindra Q4 results reveals:

• Net profit increase of 76.7% year-on-year
• Revenue slight decline of 0.2% year-on-year
• EBITDA margins improvement of 360 basis points year-on-year

These figures indicate that while Tech Mahindra has faced challenges in revenue growth over the past year, its focus on profitability and operational efficiency has yielded significant results. The substantial improvement in EBITDA margins demonstrates the company’s successful cost optimization strategies and improved business mix.

Operational Excellence and Margin Improvement

The Tech Mahindra Q4 results reflect the company’s commitment to operational excellence, as emphasized by Rohit Anand, Chief Financial Officer. According to Anand, “This year, we delivered operational excellence by achieving a 60 percent increase in operating profit through strong execution, operational leverage, and cost management.”

This focus on operational efficiency has not only improved margins but also enhanced shareholder returns. As noted in the Tech Mahindra Q4 results announcement, the company has raised its dividend per share by 12.5% and returned 85% of its free cash flow to shareholders, underscoring its commitment to its capital allocation policy.

The focus on operational excellence evident in the Tech Mahindra Q4 results represents a strategic shift for the company, prioritizing profitability and shareholder returns while maintaining a stable revenue base.

Strategic Investments and Deal Wins

According to Mohit Joshi, CEO and Managing Director of Tech Mahindra, the company has positioned itself for future growth through strategic investments. The Tech Mahindra Q4 results announcement included his statement: “Through strategic investments in our people, leadership, and capabilities, we have positioned ourselves to accelerate our strategic roadmap.”

A standout achievement in the Tech Mahindra Q4 results was the company’s deal wins, which totaled $2.7 billion—representing a substantial 42% year-on-year increase. Joshi noted that this significant growth in deal wins validates “the depth of our client partnerships” and sets the stage for future revenue growth.

The combination of operational efficiency and growing deal wins reflected in the Tech Mahindra Q4 results indicates that Tech Mahindra is successfully balancing short-term profitability with investments for long-term growth.

Headcount and Attrition Trends

The Tech Mahindra Q4 results revealed interesting trends in the company’s workforce management. By the end of Q4 FY2025, Tech Mahindra reported a headcount of 148,731 employees, down from 150,488 employees in the previous year. This reduction of approximately 1,757 employees (about 1.2%) aligns with the industry trend of optimizing workforce size amid automation and efficiency improvements.

However, the Tech Mahindra Q4 results also indicated an increase in the attrition rate, which grew to 12%. This rise in attrition deserves attention as it could potentially impact delivery capabilities if the trend continues.

These workforce trends, highlighted in the Tech Mahindra Q4 results, suggest that the company is adapting to the changing dynamics of the IT services industry, where value is increasingly derived from intellectual property and automation rather than pure headcount.

Significant Deals and Future Outlook

The Tech Mahindra Q4 results announcement highlighted several significant deals that demonstrate the company’s strategic direction. Key among these was a lab asset takeover deal with a major Tier-1 Telco in the US, which will strengthen Tech Mahindra’s Wireless Device Test Labs and Engineering business.

Additionally, the Tech Mahindra Q4 results report mentioned that the company was selected by a global leader in enterprise applications to provide Managed TechOps Services for end customers of its flagship enterprise platform. This deal leverages Tech Mahindra’s capabilities in Digital Enterprise Applications, Cloud & Infrastructure Services, Next-Gen Services, and Engineering Services.

According to the deal announcement included in the Tech Mahindra Q4 results, Tech Mahindra will cover the entire lifecycle of Private Cloud Infrastructure—including Build, Migrate, Operate, and Decommission—enabling scale, cost reduction, and efficiency gains without compromising quality.

These strategic deals, combined with the financial improvements shown in the Tech Mahindra Q4 results, suggest that Tech Mahindra is positioning itself for sustainable growth by balancing immediate profitability with investments in future-focused capabilities.