Tech Mahindra reported strong second-quarter earnings, with net profit rising to approximately ₹1,586 crore. The company also announced a 1:1 bonus issue and an interim dividend, drawing investor attention.
Highlights
- Tech Mahindra’s Q2 net profit reportedly increased by nearly 33% to ₹1,586 crore.
- The IT company announced a 1:1 bonus share issue.
- Shareholders are also set to receive an interim dividend.
- Under a 1:1 bonus issue, eligible investors receive one additional share for every share held.
New Delhi, October 16, 2026: IT services major Tech Mahindra has reported strong financial results for the second quarter of FY2026-27, with consolidated net profit rising 32.7% year-on-year to ₹1,585.6 crore. The company also announced an interim dividend of ₹15 per share and recommended a 1:1 bonus share issue, giving shareholders two major announcements alongside its quarterly earnings.
The company had reported a net profit of ₹1,194.5 crore during the same quarter last year. Revenue from operations increased 15.6% to ₹16,180.2 crore, compared with ₹13,994.9 crore in the year-ago period.
Revenue and Profit Margins Improve
Tech Mahindra’s operating performance also improved during the July-September quarter. Earnings before interest and taxes (EBIT) increased 40.5% year-on-year to ₹2,387 crore.
The company’s EBIT margin expanded by approximately 260 basis points to 14.8%, reflecting better operational efficiency and cost management.
Tech Mahindra also reported new deal wins worth $1.02 billion, representing 25.4% year-on-year growth. The company maintained its focus on artificial intelligence, digital transformation and enterprise technology services.
1:1 Bonus Shares and ₹15 Dividend
The company’s board recommended issuing bonus shares in a 1:1 ratio, subject to shareholder approval. This means eligible investors holding 100 Tech Mahindra shares would receive another 100 shares without additional payment.
However, bonus shares do not automatically increase the total value of an investor’s holdings because the share price adjusts after the issue.
Tech Mahindra also declared an interim dividend of ₹15 per share. The record date has been fixed as October 23, 2026, while the dividend payment is scheduled by November 13, 2026. The bonus issue’s record date will be announced separately.
Tech Mahindra Shares Rally
Tech Mahindra shares witnessed strong buying interest following the earnings announcement. On October 16, the stock surged more than 8% during trading, adding approximately ₹11,000 crore to the company’s market capitalisation.
The rally reflected investor optimism over improving profitability, revenue growth and shareholder returns.
Management Remains Positive
Tech Mahindra CEO and Managing Director Mohit Joshi highlighted the company’s sustained business momentum and strong customer relationships.
The company has secured deals worth more than $1 billion in each of the past four quarters. It is also investing in AI-led services and operational improvements to support future growth.
Going forward, investors will closely watch Tech Mahindra’s deal pipeline, profit margins and ability to maintain revenue growth amid changing global technology spending trends.
