Tech Mahindra Q4 Results: Profit Surges 76%, Rs 30 Final Dividend Announced

Tech Mahindra Q4 Results: Profit Jumps 76%, Announces ₹30 Final Dividend for FY 2025

Tech Mahindra, one of India’s leading information technology (IT) services providers, has delivered impressive financial results for the fourth quarter of the fiscal year 2024-25.

The company reported a significant surge in profitability, with its consolidated net profit for the quarter increasing by nearly 72% year-on-year (YoY) to ₹1,141.9 crore.

This is a remarkable improvement compared to ₹664.2 crore reported in the same period last year.

Notably, the profit attributable to the owners of the company was ₹1,166.7 crore, a 76% increase from ₹661 crore in the March 2024 quarter.

The company’s robust performance can be attributed to strong growth across its key verticals, particularly in its core IT services business, which saw healthy demand despite global economic headwinds.

The Q4 results reflect Tech Mahindra’s strategic focus on digital transformation, automation, and AI-driven solutions, which have positioned the company as a leader in emerging technology domains.

Financial Overview: Strong Revenue Growth

Tech Mahindra’s consolidated revenue from operations also saw an upward trajectory, rising to ₹13,384 crore for the January-March 2025 quarter.

This marks a year-on-year growth of approximately 4%, as compared to ₹12,871.3 crore recorded in the same period last year.

Despite a competitive landscape, the company’s ability to expand its revenue demonstrates the continued strength of its service offerings across key markets and sectors.

The growth in revenue was driven by strong demand across industries such as telecommunications, retail, and banking, as businesses worldwide increasingly turned to IT services to drive their digital transformation initiatives.

Furthermore, Tech Mahindra’s increasing investments in artificial intelligence (AI), cloud computing, cybersecurity, and 5G-related offerings have been instrumental in boosting its overall revenue and securing long-term contracts with global customers.

Tech Mahindra’s strategic focus on expanding its presence in North America and Europe has also been a major contributor to its growth, as these regions continue to see an uptick in IT outsourcing and technology modernization projects.

The company’s diversified service portfolio, which includes cloud services, IT consulting, business process outsourcing (BPO), and engineering services, has helped mitigate risks from any single industry or geography, ensuring consistent revenue generation.

Dividend Announcement: ₹30 Final Dividend Proposed

In a significant development, the board of directors of Tech Mahindra has recommended a final dividend of ₹30 per equity share for the financial year 2024-25.

The proposed final dividend will be subject to the approval of shareholders at the company’s Annual General Meeting (AGM).

If the shareholders approve the proposal, the dividend is expected to be paid on or before August 15, 2025.

The record date for determining eligible shareholders who will receive the dividend is July 4, 2025.

Only those shareholders whose names appear in the Register of Members or who are beneficial owners in the depositories by this date will be entitled to receive the final dividend.

This announcement is likely to be welcomed by the company’s investors, as it reflects the company’s strong cash flows and its commitment to returning value to shareholders.

This proposed final dividend comes on the back of an earlier interim dividend of ₹15 per share declared by the company in November 2024.

If the final dividend is approved, the total dividend payout for FY 2025 will amount to ₹45 per share.

This generous dividend payout highlights Tech Mahindra’s strong financial health and its shareholder-friendly approach, making it an attractive option for both institutional and retail investors.

Strong Profitability Reflects Operational Efficiency

Tech Mahindra’s strong profitability can be attributed to a combination of operational efficiency, cost optimization, and strategic investments in high-margin businesses.

The company’s ability to scale its digital and cloud services, which command premium pricing, has allowed it to improve margins despite external challenges such as rising inflation and supply chain disruptions.

Furthermore, Tech Mahindra’s focus on automation and AI-driven services has enabled it to streamline its operations, reduce costs, and improve productivity.

By leveraging cutting-edge technologies to enhance service delivery, Tech Mahindra has been able to stay competitive in a rapidly evolving industry.

The company’s profitability was also boosted by a healthy mix of new business wins and long-term contracts. This is particularly evident in the telecom and IT sectors, where Tech Mahindra has been able to secure multi-year deals with prominent global clients.

These long-term engagements not only provide revenue visibility but also ensure a steady cash flow, which supports the company’s ability to declare substantial dividends.

Strategic Investments and Future Growth Prospects

Tech Mahindra continues to prioritize investments in future-ready technologies such as 5G, blockchain, AI, and cybersecurity. The company has consistently demonstrated its capability to execute large-scale projects in these emerging fields, positioning itself as a key player in the global tech ecosystem.

The telecommunications sector remains a cornerstone of Tech Mahindra’s business, with the company being a trusted partner for many telecom giants around the world.

As 5G technology continues to roll out globally, Tech Mahindra’s deep expertise in telecom engineering, network infrastructure, and IT services will likely lead to further growth opportunities in this domain.

Moreover, the company is heavily invested in building its capabilities in digital engineering services, which are expected to grow significantly in the coming years as enterprises accelerate their digital transformation journeys.

As more organizations adopt digital-first strategies, Tech Mahindra is well-positioned to capitalize on this trend.

Looking ahead, the company’s focus on innovation, customer satisfaction, and strategic acquisitions is expected to drive sustained growth.

While challenges in the global economy, such as inflation and geopolitical tensions, may create uncertainties in the short term, Tech Mahindra’s diversified business model and strong focus on high-growth sectors provide a solid foundation for long-term success.

Final Remarks: A Bright Future for Tech Mahindra

Tech Mahindra’s Q4 results reflect the company’s resilience in the face of global challenges and its ability to deliver consistent growth.

With a 76% increase in profit, strong revenue growth, and a significant dividend payout, the company has demonstrated its operational strength and commitment to delivering value to shareholders.

The proposed final dividend, combined with the earlier interim dividend, underscores the company’s robust cash position and its shareholder-centric approach.

As the global IT landscape continues to evolve, Tech Mahindra’s strategic investments in emerging technologies, coupled with its strong client relationships and diversified service portfolio, position it for continued growth.

Investors can look forward to the company’s future with optimism, as it continues to leverage its capabilities to drive digital transformation for businesses worldwide.