Home / Business and Economy / Tech Mahindra Navigates Slow Growth Amidst Market Caution
Tech Mahindra Navigates Slow Growth Amidst Market Caution
23 Apr
Summary
- Tech Mahindra's Q4 FY26 revenue grew 0.6% in constant currency.
- Operating margins improved 60 basis points due to employee cost control.
- HCL Tech reported a revenue decline, impacting broader IT sector sentiment.
In the March 2026 quarter, Tech Mahindra reported a 0.6% increase in constant currency revenue, reaching Rs 15,076 crore. This performance follows a slower growth rate compared to the previous quarter and occurs as the broader IT sector faces cautious investor sentiment, exacerbated by HCL Tech's reported 3.3% revenue decline.
Despite sluggishness in some sectors like retail and transport, Tech Mahindra's communication vertical showed 1.8% growth. The company's operating profit margin expanded by 60 basis points to 17% in Q4 FY26, largely due to stringent control over employee costs, with its headcount decreasing by 1,993.
This focus on operational efficiency, combined with a one-time cost in the prior quarter, contributed to a 21.3% rise in net profit, totaling Rs 1,356.4 crore. While AI revenues were not specified, the company is actively implementing AI projects globally, a key growth driver for the IT industry.
Tech Mahindra's stock fell 2.4% to Rs 1,464 following its results, trading at a P/E of 29.8 times. This contrasts with HCL Tech, whose stock dropped 10.8% and trades at a P/E of 20 times, highlighting valuation gaps within the IT services landscape.
