Tech Mahindra Q4 Review: Profit jumps 76% YoY to Rs 1,167 crore, stock dips almost 2%; should you buy, sell or hold?

Shares of Tech Mahindra were trading 1,408 at 10:10AM after the IT major posted a strong Q4 performance with a robust 76 per cent year-on-year (YoY) jump in consolidated net profit to Rs 1,167 crore, beating analyst expectations. The board also declared a final dividend of Rs 30 per share, further boosting investor sentiment.

Topline stays stable, margin outlook improves

Tech Mahindra’s Q4 revenue rose 4 per cent YoY to Rs 13,384 crore. Sequentially, revenue remained flat with a marginal 1 per cent increase. EBIT rose 48 per cent YoY to Rs 1,405 crore, while EBIT margins improved to 10.5 per cent, reflecting better operational control and cost discipline.

In constant currency terms, revenue grew by just 0.3 per cent YoY and fell 1.5 per cent quarter-on-quarter (QoQ), signalling softness in the global IT demand environment. Dollar revenue came in flat at $1.5 billion, compared to the year-ago period.

Full-year numbers signal turnaround

For the full financial year ended March 2025, Tech Mahindra reported a consolidated PAT of Rs 4,252 crore, up 80 per cent YoY. Revenue stood at Rs 54,988 crore, up 2 per cent over FY24. EBIT for the year jumped 63 per cent to Rs 5,138 crore, highlighting a strong recovery in margins.

Dividend boost and AGM details

The company has recommended a final dividend of Rs 30 per share (600 per cent) for FY25. The dividend is subject to shareholder approval at the 38th AGM scheduled for July 17, 2025. The record date is July 4, and payment will be made by August 15.

Stock performance: Outperformer among IT peers

Tech Mahindra’s stock has gained 22 per cent over the past year, outperforming its sector by 18 per cent. It has delivered 11 per cent and 187 per cent returns over the past three and five years, respectively. As per Trendlyne data, the stock has outperformed key benchmarks including Nifty50 and Sensex, making it a standout pick in the IT pack.

With improved profitability and a consistent dividend policy, analysts believe Tech Mahindra is well-positioned to weather near-term headwinds in the global IT space.