TechM Q2 FY27: Consolidated PAT Rises 32.7% YoY to ₹1,586 Cr, EBIT Margin Expands to 14.8%

Tech Mahindra's consolidated PAT (owners' share) rose 32.7% YoY to ₹1,586 Cr on revenue of ₹16,180 Cr, up 15.6% YoY and 3.0% QoQ. EBIT climbed 40.5% YoY to ₹2,387 Cr, taking EBIT margin to 14.8% — up ~260 bps YoY and ~40 bps QoQ, the third straight quarter of expansion (12.1% → 14.4% → 14.8%) and now within striking distance of management's stated 15% full-year FY27 margin aim. Growth was broad-based: IT segment revenue rose 15.7% YoY to ₹13,612 Cr with segment result up 29.3%, while BPS revenue grew 15.3% YoY to ₹2,568 Cr with segment result up 22.9% — both outpacing topline growth, evidence of operating leverage rather than a one-line cost cut.

The margin bridge sits on cost discipline rather than revenue mix: EBITDA rose to ₹2,878.5 Cr (17.8% of revenue), as employee and subcontracting costs grew slower than revenue even as the company added headcount to 152,206 with LTM IT attrition steady at 11.7%. New deal wins (TCV) came in at $1,023 Mn, up 25.4% YoY — CEO Mohit Joshi noted deal wins have now exceeded $1 Bn in each of the last four quarters, directly resolving our pre-result watch item on deal momentum, which had set a bar of ~$800 Mn. Standalone PAT grew faster, at 37.3% YoY to ₹1,613.8 Cr on revenue of ₹13,742.4 Cr (+13.9% YoY) — a >3 percentage-point divergence from the consolidated PAT growth rate, driven by subsidiary-level profitability mix and minority interest; readers tracking the standalone number separately should note consolidated is the primary, more complete picture.

The stock went into the print at ₹1,650, up 4.7% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 3 consecutive quarters; revenue is at a 6-quarter high.

Diluted EPS ₹17.84 vs ₹13.46 YoY — headcount 152,206, LTM IT attrition 11.7%, free cash flow $135 Mn, period-end cash & equivalents ₹7,330 Cr

On street expectations, no reliable Q2 FY27-specific consensus could be verified (the pre-result preview's numeric expectations traced back to last year's Q2 FY26 estimates); what is confirmed is that PhillipCapital had modeled FY27 margins around 14% against the 15% target, and TechM's 14.8% print runs ahead of that read. Against management's own July guidance — 'above-peer growth,' a 15% full-year operating margin, and continued large-deal ramp-up — the quarter is on track: margin is trending toward 15% each quarter, and 15.6% YoY revenue growth sits well clear of typical large-cap IT peer growth this cycle. The results were announced alongside a ₹15/share interim dividend (300% of face value) and a 1:1 bonus issue, a capital-return signal timed to coincide with the 40th-anniversary print; SBI Mutual Fund had also raised its stake to 5.01% days before the results. CFO Rohit Anand called it 'another strong quarter of growth, with margins expanding for the twelfth consecutive quarter,' a claim the EBIT-margin trendline directly supports, while Joshi tied the quarter's deal momentum to 7.2% constant-currency YoY growth. One disclosure gap: this filing carries no vertical-level (BFSI, healthcare) revenue breakup, so that part of the prior guidance commentary can't be verified from the numbers here.