Tech Mahindra's Shares Dip After Profit Decline in Latest Quarter
Tech Mahindra's shares fell nearly 3% after it reported a sequential decline in net profit for the June quarter. Despite a year-on-year net profit increase of 34%, revenue growth stalled. The market valuation decreased by over Rs 4,318 crore, with expectations of deal wins impacting future numbers.
- Country:
- India
Shares of Tech Mahindra, a prominent IT services firm, experienced a near 3% decline following the release of their June quarter financial results. The company's net profit decreased sequentially, contributing to a downward trend in the stock market.
On the BSE, Tech Mahindra's stock price fell to Rs 1,563.50, marking a 2.76% decline, while the NSE observed a 2.71% drop to Rs 1,564.20. This resulted in a significant market valuation loss of Rs 4,318.14 crore, positioning the stock as the biggest laggard among Sensex-listed firms.
Despite reporting a robust 34% year-on-year rise in consolidated net profit to Rs 1,140.6 crore, the firm's revenue growth remained modest at 2.65% for the first quarter of the 2025-26 fiscal year. Discretionary spending cuts and run-offs impacted revenue negatively, although Tech Mahindra anticipates improved figures in subsequent quarters due to expected deal wins.
(With inputs from agencies.)
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