Tech Mahindra Q4 results: check date, time, expectations, dividend

Business Standard

23-04-2025

Tech Mahindra Q4 Results 2025: The IT major is likely to report a flat revenue growth, while the bottom line is expected to rise by 10 per cent
Sai Aravindh Mumbai
Tech Mahindra Q4 results preview: Information Technology major Tech Mahindra is expected to report flat sequential growth in both revenue and margins, while analysts tracked by Business Standard project a 10 per cent quarter-on-qyarter (Q-o-Q) rise in net profit for the fourth quarter of the financial year.
The IT bellwether will report its earnings for the fourth quarter ended March on April 24, Thursday, following muted sequential growth and cautious commentary from peers Infosys, Wipro, and HCL Technologies amid ongoing global trade concerns.
Tech Mahindra revenue is expected to come in at ₹13,457.85 crore, marking a 1.3 per cent increase Q-o-Q, according to consensus estimates of analysts tracked by Business Standard. On a year-on-year (Y-o-Y) basis, the company's top line is projected to grow by an average of 4.5 per cent.
Revenue for the IT giant will be weighed by seasonal weakness in the Business Process Outsourcing (BPO) business, while the margins will improve from the benefits of project Fortius, according to analysts.
Brokerages expect earnings before interest and tax (Ebit) margin to expand by 9 basis points (bps) to 10.29 per cent. The firm is expected to post a 10.2 per cent decline in net profit for the fourth quarter sequentially to ₹1,083.71 crore. On a Y-o-Y basis, the net profit is expected to grow at an average of 11.76 per cent.
Here's how analysts of various brokerages expect Tech Mahindra to fare in Q4:
Kotak Securities: The brokerage expects Tech Mahindra to report a constant currency revenue decline in Q4, driven by weakness in the hi-tech segment and seasonal softness in the BPO business. These headwinds are expected to outweigh the seasonal boost from Comviva.
However, Ebit margin is likely to improve by 30 bps, aided by cost efficiencies from Project Fortius and the benefit of rupee depreciation, offsetting the impact of wage hikes. Net new deal wins are expected at around $750 million, showing both quarter-on-quarter and year-on-year improvement. Importantly, these deals are coming in at higher margins, Kotak said. For FY26, Kotak expects solid profitability, though revenue growth may remain muted due to the exit from low-margin businesses.
The net profit is likely to rise by 1.2 per cent Q-o-Q to ₹994.8 crore, while the Ebit are expected to rise by 31 basis points sequentially, according to Kotak.
IDBI Capital: Analysts at the brokerage expect Tech Mahindra's revenue to decline by 0.6 per cent in US dollar terms, mainly due to weakness in the hi-tech vertical. Ebit margin is likely to stay flat, supported by cost benefits from Project Fortius, which helps offset revenue pressure, it said in a note.
Large deal wins, plans to boost growth, margin improvement measures, geographic visibility, and updates on AI-driven deals are the key factors to watch, according to IDBI Capital.
HSBC: The global brokerage expects revenue to decline by 0 to 1 per cent Q-o-Q in constant currency terms for Q4, as growth in banking and manufacturing is likely to be offset by continued weakness in the hi-tech, BPS, and telecom segments. Margins are expected to remain flat, with the benefit of rupee depreciation balancing out the impact of wage hikes.
The new management team acknowledges the need to invest in sales and manage costs to expand margins, HSBC said. "However, we believe the path to this turnaround is going to be challenging." The brokerage has lowered revenue estimates for FY25-27 by 2 per cent. "Consensus has moderated recently, but we do see further downside risk on FY27 margin and EPS estimates for the company."