Tech Mahindra (TECHM) Q4 24/25 earnings summary

Executive summary

• FY25 revenue was $6,264 million (Rs 52,988 Cr), with 0.3% constant currency growth, reversing a prior year decline; Q4 revenue at $1,549 million (Rs 13,384 Cr), flat YoY and down 1.2% sequentially.

• Operating profit (EBIT) grew 60% YoY to $607 million (Rs 5,138 Cr), with margin expansion driven by operational efficiencies and Project Fortius.

• PAT for FY25 was $502 million (Rs 4,252 Cr), up 80.3% YoY; Q4 PAT at $136 million (Rs 1,167 Cr), up 71% YoY; PAT margin at 8.7% in Q4.

• Large deal TCV reached $2.7 billion, up 42% YoY, with broad-based wins across industries and geographies.

• Strategic investments in AI, consulting, leadership, and new service lines, with expanded partnerships and transformation initiatives.

Financial highlights

• Q4 EBIT was $163 million (Rs 1,405 Cr), up 43.6% YoY; EBIT margin at 10.5%, up 40 bps QoQ and 310 bps YoY.

• Q4 PAT was $136 million (Rs 1,167 Cr), up 17% QoQ and 71% YoY; PAT margin at 8.7%, up 130 bps sequentially and 350 bps YoY.

• Free cash flow for FY25 was $613 million; Q4 free cash flow was $150 million.

• Diluted EPS for FY25 at Rs 47.91; Q4 EPS at Rs 13.15.

• Cash & equivalents at $896 million at year-end; hedge book at $2.0 billion as of March 31.

Outlook and guidance

• FY26 expected to accelerate toward FY27 goals, focusing on profitable growth and margin expansion.

• Macro headwinds persist, especially in manufacturing and high-tech, but diversified portfolio and strong deal pipeline provide resilience.

• Targeting EBIT margin of 15% and ROCE above 30% by FY27.

• Large deal TCV guidance remains $600–800 million per quarter.

• Focus on operational excellence, cost management, and capital allocation to drive future growth.