Tech Mahindra shares down by 2% after Q1 net profit decline

New Delhi: Shares of IT services firm Tech Mahindra declined over 2 per cent on Thursday after its June quarter net profit declined sequentially.

The stock dropped 2 per cent to Rs 1,575 on the BSE.

At the NSE, shares of the firm went lower by 2.21 per cent to Rs 1,572.30.

Tech Mahindra on Wednesday reported a nearly 34 per cent year-on-year increase in consolidated net profit to Rs 1,140.6 crore for the quarter ending June 30, 2025, on the back of growth in communications and financial services verticals.

The company had logged a net profit (attributable to owners of the company) of Rs 851.5 crore in the year-ago period, according to a regulatory filing.

The Pune-based company's revenue from operations for the first quarter of 2025-26 grew 2.65 per cent to Rs 13,351.2 crore from Rs 13,005.5 crore in the same period last year.

Sequentially, net profit declined by 2.2 per cent, and revenue saw a marginal dip of 0.2 per cent from the preceding quarter.

Discretionary cuts and run-offs hit revenues, and the company expects deal wins to start reflecting in the numbers from the second quarter onwards.