A high base is predicted to cause Tech Mahindra’s net profit to fall sequentially, while bad seasonality and further furloughs are expected to restrain revenue growth.
Tech Mahindra Q3 Results 2025 Live Updates:Â
The IT services provider Tech Mahindra is scheduled to release its Q3 earnings today. With market players concentrating on the demand environment, transaction pipeline, and updates on telecom verticals, the business is anticipated to report reduced revenues in the third quarter of FY25 on a sequential basis. According to estimates, Tech Mahindra’s Q3FY25 net profit increased by 103% year over year (YoY). Net profit is anticipated to decline 17% on a sequential basis.
Due to enterprise, currency, furlough, and CME seasonality, the company’s revenue is predicted to stay unchanged for the quarter ending December 2024. In Q3, analysts anticipate a stable deal TCV due to some improvement in the demand situation. It is also expected that margins will be flat QoQ. The primary metric to be tracked will be the growth and margin expectations in the CME and BFS sectors. Check out our Tech Mahindra Q3 Results 2025 Live blog for the most recent information.
On January 17, tech giant Tech Mahindra is scheduled to reveal its October-December financial results. Analysts predict a sequential decline in net profit based on a strong foundation from the previous quarter and restrained revenue growth because of lousy seasonality for several segments.
A Moneycontrol survey of nine brokerages predicts tech Mahindra’s sales would rise by 0.3 percent to Rs 13,355 crore from Rs 13,313 crore in the previous quarter.
Additionally, analysts predict Tech Mahindra’s consolidated net profit will drop 16% every quarter to Rs 1,051 crore. Notably, selling a property for Rs 450.2 crore helped the IT major earn a net profit of Rs 1,250 crore in the previous quarter.
However, according to projections, the EBIT margin is expected to increase by 40 basis points per quarter to reach 10%. Of the brokerages surveyed, BOBCAPS anticipates the most significant decline in net profit at almost 23 percent, while Kotak Institutional Equities forecasts the least, at about 10 percent.
What are the Main Forces Behind the Earnings?
Higher furloughs in the previous quarter will probably be offset by the telecom industry’s good seasonality, which will slightly increase revenue. However, deferred pay increases and cost-cutting initiatives are anticipated to boost profits.
- Seasonality effect: According to brokerage company PL Capital, Tech Mahindra’s Q3 revenue performance will be affected by manufacturing segment slowdown and furloughs, which Comviva’s favorable seasonality will somewhat offset.
- Margin improvement: Project Fortius, the company’s cost-optimization effort, and the postponement of pay increases are projected to help margins and provide sequential growth. Kotak Institutional Equities pointed out that the margin increase may have been more significant if currency headwinds hadn’t limited the development.
- Contract wins: Most brokerages predict Tech Mahindra will have more contract wins in Q3 than in Q2. KIE predicts $700 million in net new deal wins, a significant rise on-year and a sequential improvement. Above all, the brokerage emphasized that in Q3, new sales were won at a more substantial margin.
