Tech Mahindra Ltd. reported its Q3 FY2025 results on January 17, showcasing a better-than-expected constant currency revenue growth and an expansion in its operating margins. For the October-December period, the company saw a 1.2% growth in constant currency revenue, slightly above CNBC-TV18’s estimated growth range of 0-1%.
Revenue and Profit Overview
In US Dollar terms, Tech Mahindra’s revenue reached $1,567 million, which fell short of analysts’ expectations of $1,581 million. However, in Indian Rupee terms, the company posted a topline of ₹13,286 crore.
Net profit for the quarter came in at ₹983 crore, which was lower than the forecast of ₹1,081 crore and marked a 21.4% decline from the ₹1,250 crore reported in the previous quarter.
EBIT and Margin Performance
Tech Mahindra’s EBIT (Earnings Before Interest and Taxes) grew 5.4% to ₹1,350 crore, compared to ₹1,280.4 crore in the September quarter. Operating margins improved to 10.2%, up from 9.6% in Q2 FY2025, reflecting the company’s ongoing efforts to drive operational efficiencies.
Tech Mahindra secured net new deal wins worth $745 million during the quarter. CEO Mohit Joshi highlighted the company’s success in securing deals across key verticals and prioritized markets, despite facing cross-currency headwinds. “This growth in deal wins, combined with steady margin expansion, reinforces our commitment to our long-term objectives,” Joshi said.
CFO Rohit Anand credited the company’s sustained EBIT margin and operating PAT growth to focused actions under the “Project Fortius” initiative. He also pointed to strong free cash flow generation driven by a continued emphasis on optimizing working capital management.
Stock Performance
Despite the positive financial results, Tech Mahindra’s stock closed 1.91% lower on Friday, just ahead of the earnings announcement. As of now, the stock has declined 3% in 2025.
ALSO READ: Wipro Q3 Earnings: Profit Soars 24% To ₹3,354 Crore; Revenue Marginally Higher
