Mumbai, April 24, 2025 – Tech Mahindra (NSE: TECHM), a global leader in digital transformation and consulting services, announced its audited financial results for the fourth quarter and fiscal year ending March 31, 2025, showcasing robust growth across key metrics. The company’s Board of Directors recommended a final dividend of ₹30 per share, bringing the total dividend for FY25 to ₹45 per share (900% on face value), underscoring its commitment to shareholder returns.
Financial Performance Highlights
Tech Mahindra’s FY25 results reflect a remarkable turnaround, driven by operational efficiency, cost optimization, and strategic deal wins:
- Profit After Tax (PAT) surged 80.3% YoY to ₹4,252 crores in FY25, up from ₹2,357.8 crores in FY24.
- EBIT Margins expanded by 360 basis points YoY to 9.7%, attributed to improved execution and reduced costs.
- Revenue grew modestly by 1.9% YoY to ₹52,988 crores (USD 6.26 billion), with constant currency growth at 0.3%.
- Free Cash Flow stood at ₹5,107 crores (USD 613 million), with 85% returned to shareholders.
Quarterly Snapshot (Q4 FY25):
- PAT jumped 76.5% YoY to ₹1,167 crores.
- EBIT rose 48.5% YoY to ₹1,405 crores.
- New deal wins totaled USD 798 million in Q4, contributing to a 42% YoY increase in annual contract value (USD 2.7 billion).
Dividend and Book Closure Details
Shareholders will receive a final dividend of ₹30 per share, subject to approval at the 38th Annual General Meeting (AGM) on July 17, 2025. This follows an interim dividend of ₹15 per share paid in November 2024.
- Book Closure Dates: July 5–17, 2025.
- Dividend Payout: By August 15, 2025, to shareholders on record as of July 4, 2025.
Strategic Mergers and Leadership Appointments
The Board approved the merger of three wholly-owned subsidiaries—Zen3 Infosolutions, Tech Mahindra Enterprise Services, and Begig Private Limited—with the parent company, effective April 1, 2025. Additionally, Makarand M. Joshi & Co. was appointed as Secretarial Auditor for a five-year term.
Key Business Developments
- Major Deals:
- Lab asset takeover with a US Tier-1 Telco to dominate 5G device testing.
- Compute infrastructure modernization for a US aerospace giant using CaaS/PaaS.
- AI-driven pharmacovigilance solution with NVIDIA, reducing manual errors by 40%.
- Partnerships:
- Expanded collaborations with Google Cloud (AI solutions) and Qualcomm (IndusQ LLM integration).
- Joined the AI-RAN Alliance to advance AI in telecom networks.
- Innovation:
- Launched TechM Consulting to accelerate digital transformation.
- Opened a Manufacturing Xperience Centre in Chennai for AI prototyping.
Analyst Ratings and Industry Recognition
Tech Mahindra solidified its leadership across sectors:
- Leader in SAP, ServiceNow, and Salesforce ecosystems (ISG 2025).
- Top 5% in S&P Global Sustainability Yearbook 2025.
- Net-Zero Targets validated by SBTi, aligning with 1.5°C climate goals.
Financial Comparison Table: FY25 vs. FY24
| Metric | FY25 | FY24 | YoY Change | Industry Avg. (Hypothetical) |
|---|---|---|---|---|
| Revenue (₹ Cr) | 52,988 | 51,995.5 | +1.9% | +2.5% |
| PAT (₹ Cr) | 4,252 | 2,357.8 | +80.3% | +15% |
| EBIT Margin (%) | 9.7% | 6.1% | +360 bps | +200 bps |
| Dividend Per Share (₹) | 45 | 40 | +12.5% | +8% |
| EPS (Diluted) | ₹47.91 | ₹26.6 | +80.1% | N/A |
*Note: Industry averages are illustrative due to FY25 being a forward-looking period.*
CEO Outlook
Mohit Joshi, CEO, remarked, “Our FY25 performance underscores the success of our transformation journey. With $2.7 billion in deals and strategic investments in AI, we’re poised to lead the next wave of digital innovation.”
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