Tech Mahindra Q4 FY25 Net Profit Surges 76.5% YoY; Declares Dividend

Tech Mahindra, a prominent player in India's IT services sector, has concluded the financial year 2025 with strong net profit growth in the fourth quarter. The results, announced on Thursday, showed the company's bottom line significantly exceeding analyst expectations on a sequential basis, offering a late boost after sequential revenue decline in the third fiscal quarter. The company’s share price closed with a modest increase of 0.49% at ₹1,446.60.

Financial Performance Highlights

For the quarter ending March 31, 2025 (Q4 FY25), Tech Mahindra reported a consolidated net profit attributable to shareholders of ₹1,167 crore. This represents a substantial 76.5% increase year-on-year compared to the ₹661 crore reported in the corresponding period of FY24. Sequentially, the net profit saw a robust increase of 18.7% from ₹983 crore in the preceding December quarter. 

Revenue from operations for Q4 FY25 stood at ₹13,384 crore. This marked a 3.98% from ₹12,871.30 crore recorded in the same quarter last year. On a quarter-on-quarter basis, revenue growth was more modest at 0.7% compared to ₹13,286 crore in Q3 FY25. In dollar terms, revenue was reported at $1,549 million, remaining flat year-on-year and declining 1.2% quarter-on-quarter.

Earnings Before Interest and Tax (EBIT) for the quarter was reported at ₹1,378 crore, this represented a 2% increase from ₹1,350 crore sequentially. The EBIT margin for Q4 FY25 stood at 10.3%, a slight improvement from 10.2% in the previous quarter.

Operational Overview

From an operational standpoint, the company's total workforce saw a sequential decline, decreasing by 1,757 quarter-on-quarter to reach 1,48,731 as of March 31, 2025. The attrition rate, calculated on a trailing 12-month basis, was 11.8%, an increase of 180 basis points year-on-year.

Dividend Announcement

In a positive move for investors, the board of directors recommended a final dividend of ₹30 per equity share with a face value of ₹5 each, for the financial year ended March 31, 2025. Consequently, the total dividend for FY25 amounts to ₹45 per equity share, subject to shareholder approval at the forthcoming Annual General Meeting.

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