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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹13,006 Cr
verified against source
Revenue YoY
-1.2%
reported change
EBITDA
Pending
latest reported figure
Source
nse xbrl
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Tech Mahindra reported Q1 FY25 revenue of ₹13,005 crore, down 1.2% YoY, with EBIT margin expanding 110 bps QoQ to 8.5%, driven by Project Fortius cost savings. PAT stood at ₹851 crore (6.5% of revenue). Growth was led by manufacturing (+6.4% YoY) and healthcare (+6.1% YoY), while communications declined due to Comviva seasonality. Deal wins totaled $534 million, up 6.8% QoQ, diversified across verticals. Management highlighted early turnaround progress with focus on margin over revenue, but flagged continued telecom weakness and BFSI volatility due to small portfolio size. Guidance remains cautious: no wage hikes planned near-term, with margin levers expected to sustain improvement even in flat demand. Risk: telecom recovery may be slower than anticipated, and BFSI gains are from internal efforts rather than demand uptick.
Colored figures show movement against the previous available record.
Guidance to track
- Management communicated no wage hike currently, will reassess in second half of FY25 based on financial performance.
- Management stated they have enough internal levers to improve margins even without revenue growth, prioritizing margin over revenue.
- CFO guided that normalized effective tax rate for the year will be in the range of 26%-27%.
Risks flagged
- Management noted telecom sector remains challenged; while decline moderated to single digits, no immediate upturn is expected.
- Management acknowledged that BFSI vertical is relatively small, so a few million dollars can cause quarter-to-quarter volatility.
- Analyst raised concern that BPS contact center services may be first impacted by GenAI; management downplayed but admitted contact center is under 5% of revenue.
- Analyst asked about unseasonal furloughs; management confirmed one or two clients but said not material or widespread.
Key quotes
- We will prioritize margin over revenue.
- We do not see an opportunity for a wage hike at this time, and we will revisit it in the second half of the year.
- The commercialization models are not very well developed now, and I do not expect this to be a significant contributor to our revenues.
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