Tech Mahindra Overview: Q4 Profit Soars 76%, AI & BFSI Drive Future Growth
Business and Industry Overview:
Tech Mahindra is a big IT services and consulting company based in Pune, India. It was founded in 1986 as a joint venture between Mahindra & Mahindra and British Telecom. The company now works in more than 90 countries around the world. It provides digital transformation, cloud computing, cybersecurity, and AI services to businesses in many sectors like banking, healthcare, retail, and telecom. The company has around 154,000 employees and earned $6.3 billion in revenue in 2024. Its market value is about $18.9 billion. Tech Mahindra helps companies use new technologies to improve their operations and grow. The CEO, Mohit Joshi, wants to make Tech Mahindra a bigger player in the banking, financial services, and insurance (BFSI) sectors. The company is also focusing on AI technology and sees it as an opportunity to grow, not as a job threat. It believes that AI will help improve jobs rather than replace them. Tech Mahindra is committed to staying ahead in the tech world and providing value to its customers globally.
Latest Stock News:
Tech Mahindra’s stock has been doing well recently. On April 24, 2025, the stock went up by 0.47%, reaching ₹1,446.10. But it is still about 20% lower than its highest price of ₹1,807.40, which happened in December 2024. This shows that while the stock is growing, it has not yet reached its peak. The company just shared its results for the last quarter of FY25. The results were very good. Tech Mahindra’s profit increased by 76.5% compared to last year, reaching ₹1,166.7 crore. This is a strong sign that the company is managing its costs and making more money. The company’s revenue also grew by 4%, reaching ₹13,384 crore. Tech Mahindra also declared a final dividend of ₹30 per share. This means shareholders will get ₹30 for every share they own. The total dividend for the year is ₹45 per share. This is good news for investors. However, some experts are concerned about problems in the U.S. market, which could affect the company’s growth. Despite these concerns, Tech Mahindra is focusing on expanding in areas like banking and financial services. They are also investing in new technologies like artificial intelligence, which could help them grow in the future. This shows that Tech Mahindra is planning for long-term success, even if there are some challenges in the short term.
Segmental information:
- Telecom and Media: This is one of the biggest areas for Tech Mahindra. They help telecom companies with network management, cloud services, and digital changes. They also work with media companies on content management and distribution.
- Enterprise Business: In this segment, Tech Mahindra works with businesses in sectors like banking, insurance, retail, and manufacturing. They offer services like IT consulting, business automation, and improving customer experience.
- Healthcare and Life Sciences: Tech Mahindra helps healthcare providers, pharmaceutical companies, and life sciences organizations with technology. They offer services like data analysis, AI solutions, and digital changes for the healthcare industry.
- BFSI (Banking, Financial Services, and Insurance): Tech Mahindra offers services to banks, insurance companies, and other financial businesses. They focus on things like digital banking, managing risks, and improving customer service in finance.
- Manufacturing, Retail, and Other Verticals: In this segment, Tech Mahindra helps businesses in manufacturing, retail, energy, and utilities. They provide services like supply chain management, planning resources, and digital changes for these industries.
Subsidiary information:
- Comviva Technologies Ltd.
Comviva is based in India and provides mobile financial services, digital payments, and mobile banking. It serves telecom operators and financial institutions in over 60 countries.
- Pininfarina S.p.A.
Pininfarina is an Italian design company known for its work with car brands like Ferrari. It was bought by Tech Mahindra in 2015 and helps with design services in industries like automotive and architecture.
- Com Tec Co. (CTC)
CTC is an IT consulting company from Cyprus. It was acquired in 2022 and helps Tech Mahindra offer digital transformation and enterprise solutions.
- Thirdware Solution Ltd.
Thirdware, based in India, offers enterprise software solutions like ERP and CRM. It was acquired in 2022 to strengthen Tech Mahindra’s business in these areas.
- Satyam-Venture Engineering Services Pvt. Ltd.
This subsidiary provides engineering services, including product design and testing, in industries like manufacturing and technology.
- Tech Mahindra (Nigeria) Ltd.
This subsidiary works in Nigeria, offering IT services and solutions to businesses in Africa.
- Tech Mahindra (Americas), Inc.
This subsidiary handles Tech Mahindra’s operations in North and South America, providing IT and consulting services across the continent.
- Born Group
Born Group is a digital agency that Tech Mahindra bought in 2019. It specializes in e-commerce, digital marketing, and creating digital experiences for businesses.
Q4 Highlights:
- Net Profit: Tech Mahindra’s net profit grew by 76% compared to last year, reaching ₹1,167 crore in Q4 FY25.
- Revenue: The company’s revenue increased by 4% from last year, reaching ₹13,384 crore in Q4 FY25.
- Final Dividend: The company declared a final dividend of ₹30 per share, making the total dividend ₹45 per share for FY25.
- Deal Wins: Tech Mahindra won deals worth $2.7 billion, a 42% increase from last year.
- EBIT Margin: The EBIT margin rose to 10.5%, which is 3.2% higher than last year.
- PAT Margin: The PAT margin increased to 8.7%, up by 3.5% compared to last year.
Financial Summary:
| Amount in ₹ Crore | Q4 FY24 | Q4 FY25 | FY24 | FY25 |
| Revenue | 12,871 | 13,384 | 51,996 | 52,988 |
| Expenses | 11,772 | 11,545 | 47,489 | 46,024 |
| EBITDA | 1,099 | 1,839 | 4,506 | 6,964 |
| OPM | 9% | 14% | 9% | 13% |
| Other Income | 380 | 173 | 927 | 864 |
| Net Profit | 664.00 | 1,142 | 2,397 | 4,253 |
| NPM | 5.16 | 8.53 | 4.61 | 8.03 |
| EPS | 6.77 | 11.92 | 24.14 | 43.43 |