Land sale gain lifts Tech Mahindra net profit 92% higher

Fifth-largest IT services firm Tech Mahindra on Friday reported a 92.6% year-on-year (YoY) jump in consolidated net profit for the October-December quarter of fiscal year 2025 at Rs 983 crore. Profit was driven by a one-time land sale gain, rupee depreciation and improved rate of deal wins in its key verticals of banking, financial services & insurance (BFSI) and hi-tech & media. In the previous quarter ending September profit stood at Rs 1,250 crore and in the December quarter a year ago it was at Rs 510 crore.
The profit was helped by a one-time gain of $54 million proceeds from a land sale that took place in the previous quarter.
Tech Mahindra’s revenue stood at Rs 13,286 crore in Q3 FY25, down 0.2% from the September quarter but up 1.4% compared to the year-ago period. The sequential dip was attributed to major cross currency headwinds.

“The steep currency movements through the quarter have impacted the reported numbers. Adjusted for fluctuations, we saw healthy revenue growth in communications, BFSI, and healthcare and life sciences,” said Tech Mahindra CEO Mohit Joshi.

The company reported a new deal wins TCV of $745 million for Q3, up 95.4% YoY. In the September quarter, it had reported a deal wins TCV of $603 million.

Joshi said that the firm onboarded over 40 new clients from must-have accounts so far this fiscal, including six large deals. Twelve were onboarded in the December quarter. Over two dozen of these have a revenue run rate above a million dollars annually, he said. He added that in terms of regions, the company is seeing ‘pockets of demand’ across prioritised markets of North America, Europe and APJ (Asia Pacific and Japan).

Sequentially in Q3, the Mahindra group company saw revenue from manufacturing dip by 3.7% owing to headwinds in the automotive industry. Revenue from communications, hi-tech and media, and retail, transportation and logistics verticals declined by 3.7%, 4%, 1.5% and 0.3%, respectively. Revenue from BFSI improved 0.4%. Revenue from manufacturing declined 7.2% while that from BFSI was up 8.3% YoY.

Geographically, revenue from the Americas and Europe dipped 1.8% and 3%, respectively QoQ, and by 2.3% and 1% YoY, respectively. EBIT margin also improved to 10.2% from 9.6% in Q2 this year and almost doubled from 5.4% in Q3 last year helped by rupee depreciation and its margin program Project Fortius.

During the quarter, Tech Mahindra’s employee headcount dipped by 3,785 with total count at 150,488 at the end of December 2024. From a year ago, headcount increased 4,238. This comes after the firm added 6,653 employees in Q2 FY25 when its headcount stood at 154,273.

The company said it is on track for its hiring target of 6,000 freshers for FY25, said Rohit Anand, CFO, Tech Mahindra. He added that in the three quarters of the fiscal so far, about 4,700 freshers have been added.