Tech Mahindra is growing its sales and keeping more of each rupee as operating profit. That is the main business story in its September-quarter results.
The board also proposed a bonus share issue. But the bigger test is whether the company can keep growing sales and margins while turning more of its reported profit into cash.
The Breakdown
For the quarter ended September 30, 2026, revenue was $1.693 billion. That was up 2% from the June quarter and 6.8% from a year earlier. After changes in exchange rates were removed, growth was 2.4% from June and 7.2% from a year earlier. This is called constant-currency growth.
In rupees, revenue reached ₹16,180 crore, up 15.6% from a year earlier. That larger growth rate uses a different measure from constant-currency growth, so it cannot take its place when judging how the business grew. Removing currency changes also does not strip out growth from businesses the company bought.
Earnings before interest and tax, known as EBIT, rose 40.5% from a year earlier to ₹2,387 crore. The EBIT margin was 14.8%, up from 14.4% in the June quarter. Net profit belonging to shareholders was about ₹1,586 crore, up 32.7% from a year earlier.
Why This Matters
Revenue growth and margin growth tell us different things. Revenue shows how much business the company delivered. The margin shows how much of that revenue it kept as operating profit.
When both rise, the company has grown its business while keeping a larger share of sales as operating profit. But that alone does not tell us what drove the change: prices, the mix of projects or lower costs.
Cash is another useful check. Free cash flow fell to $135 million, from $167 million in the June quarter. So stronger reported earnings did not bring a rise in this cash measure over the same period. Watch how much of the company’s reported profit turns into cash.
The Big Picture
New-deal wins had a total contract value of $1.023 billion, up 25.4% from a year earlier. But that was below the June quarter’s $1.078 billion.
That value measures work won. Its revenue depends on when projects start and how the work is done. The rise from a year earlier is a good sign. The fall from June shows why deal wins can vary from quarter to quarter.
The board declared an interim dividend of ₹15 a share. It also proposed a 1:1 bonus issue, which would give holders one extra share for each share they own. The bonus still needs shareholder approval and must meet the rules that apply. No bonus record date has been announced. A bonus would raise the number of shares held, but leave each holder’s share of ownership unchanged. It would not, by itself, raise the value of the business.
The Crunch
Tech Mahindra has grown its revenue and its operating margin together. The next test is to keep both gains going. Watch how its new deals turn into work, and how its reported earnings turn into cash.