By BullScreen Editorial Team 
Tech Mahindra delivered a mixed performance in its Q1 results 2027, with revenue and operating margins beating market expectations even as net profit came in below Street estimates. The IT services company also maintained strong business momentum by securing more than $1 billion in new deal wins for the third consecutive quarter, highlighting steady client demand despite a challenging global technology spending environment.
During the June quarter, Tech Mahindra reported consolidated revenue of ₹15,711.9 crore, up 4.2% quarter-on-quarter, surpassing estimates of ₹15,486 crore. In dollar terms, revenue reached $1.66 billion, reflecting 2.2% sequential growth, while constant currency revenue increased 2.6%, well above the expected 1% growth. However, consolidated net profit stood at ₹1,486.3 crore, lower than the estimated ₹1,694 crore, though it still rose 9.8% from the previous quarter.
Operating performance remained strong, with EBIT increasing 8.6% sequentially to ₹2,264 crore. EBIT margin expanded to 14.4%, marking the company’s fourth consecutive quarter of margin improvement, compared with 13.8% in the previous quarter and 11.1% a year ago.
The company recorded $1.078 billion in new deal wins, up 33.3% year-on-year. Europe emerged as the fastest-growing market, supported by the Telefónica contract, while the manufacturing segment led vertical growth with a 9% sequential increase. CEO Mohit Joshi said the sustained deal pipeline and rising number of large clients demonstrate the resilience of the business.
Operationally, IT attrition eased to 11.8%, total headcount declined to 146,760, and cash reserves stood at ₹9,695 crore. Investors will closely watch whether this strong order pipeline translates into faster earnings growth in the coming quarters, making Q1 results 2027 an important indicator of Tech Mahindra’s recovery strategy.