Software services company Tech Mahindra reported a 46.8 per cent sequential rise in net profit at ₹1250 crore in the September quarter, while revenue was 2.4 per cent higher at ₹13,313 crore, with deal wins worth $603 million.

The company recorded EBITDA of ₹1750 crore, up 11.9 per cent on the quarter.

In US dollar, the company’s net profit was 46.1 per cent higher at $149 million and revenue up 1.9 per cent at $1.6 billion. Revenue grew 0.7 per cent sequentially in constant currency terms. Its EBITDA margin expanded 110 basis sequentially at 13.1 per cent and was up 480 bps on year.

“This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimisation and steady free cash flow generation as we continue our journey towards FY27 stated targets,” said Chief Financial Officer Rohit Anand. In Q1 the company had won deals with total contract value of $534 million.

The IT services sector has been continuing soft. “We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter,” said Chief Executive Officer and Managing Director Mohit Joshi.

Rivals Wipro and HCL Technologies had posted strong results in Q2 and while Infosys also reported good results and raised its guidance, it fell short of investor expectations. Tata Consultancy Services was disappointing with margins contracting, though revenue growth was above analyst expectations.

Tech Mahindra ended the quarter with a headcount of 154,273, adding 6653 employees during the quarter. Its attrition was at 10.6 per cent.

It generated free cash flows of $157 million and at the end of the quarter had cash of ₹6566 crore. It announced a dividend of ₹15 a share.

During the quarter it was selected by a leading European cloud service provider for an Autonomous Operations Program, was engaged by a telco in Europe to improve quality and efficiency, entered into a managed services deal with a Canadian communications, media and technology company and won an order from Australia’s leading telecom company to deliver customer experience services.

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