Tech Mahindra’s shares reach a new 52-week high as Q2 profits surge by 47%

On October 21, 2024, shares of IT major Tech Mahindra experienced a remarkable boost, hitting a fresh 52-week high of ₹1,761.30 per share—an increase of 4.34%. This surge follows the company's impressive financial results for the September quarter of 2025 (Q2FY25), announced on October 19. 

Tech Mahindra's profit soared by 46.8% quarter-on-quarter, reaching ₹1,250.1 crore, up from ₹851.5 crore in the previous quarter. Such robust growth is an encouraging sign for investors considering share market investment, as it showcases the company's resilience and operational efficiency.

Revenue and operational highlights

In Q2FY25, Tech Mahindra reported a 2.4% sequential increase in revenue from operations, totalling ₹13,313.2 crore compared to ₹13,005.5 crore in Q1FY25. Notably, earnings before interest and taxes (EBIT) jumped 16.2% to ₹1,280.4 crore, contributing to an expanded EBIT margin of 9.6%, up from 8.5% in the previous quarter. This sustained financial performance reflects Tech Mahindra's commitment to enhancing shareholder value, making it an attractive prospect for those looking to explore share market investment opportunities.

In addition to its strong financials, Tech Mahindra announced a provisional dividend of ₹15 per share. Rohit Anand, the company's chief financial officer, highlighted consistent performance in deal wins, revenue growth, and free cash flow generation as key drivers of success. He noted, "In line with our capital allocation policy, the board has declared an interim dividend," further reassuring investors about the company's commitment to returning value.

Strategic initiatives for future growth

Mohit Joshi, the CEO and managing director, remarked on the ongoing strategic improvements, stating, "We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft." This proactive approach focuses on strengthening client relationships and expanding partnerships, which is vital for maintaining operational excellence and sustaining growth in a competitive market.

Tech Mahindra's current market capitalisation stands at ₹1,68,931.62 crore, illustrating its significant position within the industry. As of 10:19 AM, Tech Mahindra shares were trading 2.29% higher at ₹1,726.70, while the BSE Sensex remained relatively flat at 81,242.22. For investors seeking solid share market investment opportunities, Tech Mahindra's consistent performance and strategic initiatives present a compelling case.

Key takeaways

• Tech Mahindra shares reached a 52-week high, driven by a 46.8% profit increase in Q2FY25.
• The company's revenue grew by 2.4%, and EBIT rose 16.2%, showcasing strong operational performance.
• An interim dividend of ₹15 per share was declared, reaffirming the company's commitment to shareholder returns.
• Strategic initiatives aimed at improving client relationships and operational excellence position Tech Mahindra as a promising option for share market investment.