Indian IT services company Tech Mahindra reported stronger-than-expected first-quarter revenue, driven by robust growth in its manufacturing business and the benefit of a weaker Indian rupee.
For the quarter ended June 30, the company posted revenue of ₹157.12 billion (US$1.63 billion), up 17.7% from a year earlier and above analysts’ average estimate of ₹154.76 billion.
The weaker rupee also boosted earnings, as Indian IT companies generate much of their revenue in foreign currencies while incurring most of their operating costs in rupees.
Despite the revenue beat, net profit rose 28.5% year-over-year to ₹14.65 billion, falling short of analysts’ expectations of ₹15.63 billion.
Tech Mahindra’s manufacturing segment, its second-largest business, recorded 17.2% annual revenue growth, while its communications division, which contributes roughly one-third of total revenue, grew 1.3%.
The Pune-based company also reported a sharp increase in new business, with net order bookings rising to US$1.08 billion, compared with US$809 million in the same period last year.
During the quarter, Tech Mahindra announced new partnerships with Telefónica Germany, Microsoft, and robotics platform Viam, expanding its presence across digital transformation and artificial intelligence initiatives.
The results follow stronger-than-expected quarterly earnings from larger Indian IT peers Tata Consultancy Services (TCS) and HCLTech, reflecting continued technology spending by global financial services clients.
Tech Mahindra shares closed 1.13% higher ahead of the earnings announcement.
