Tech Mahindra is set to consider its first bonus share issue in over a decade during the October 15-16 board meeting. According to the latest reports, this would mark the company's first such corporate action since March 2015, when it announced a 1:1 bonus issue that gave eligible shareholders one additional share for every share held. The IT services company had also decided to split its shares in a 2:1 ratio in the same year, with each share carrying a face value of ₹10 split into two shares of ₹5 each. The proposed bonus issue will be closely watched by investors as the company enters the Q2 earnings season, as bonus shares do not change the underlying value immediately but can increase the number of shares outstanding and potentially improve trading liquidity. 7.1 lakh retail shareholders with authorized share capital up to ₹2 lakh will be the primary beneficiaries of this historic corporate action.
Tech Mahindra Ltd. will hold a meeting of its Board of Directors on October 15-16 to consider and approve the audited standalone and consolidated financial results for the second quarter of FY27. According to the latest company filing, the audited financial results and statements for the second quarter and half year ended September 30, 2026 will be considered and declared on Thursday, October 15, 2026. The company, which operates in over 90 countries as part of the Mahindra Group, will also consider a proposal to recommend an interim dividend for financial year 2026-27 during this meeting. The filing did not disclose the size of the proposed dividend or the ratio of the bonus issue, with both remaining proposals at this stage that will need board approval. As per the June quarter shareholding pattern, 7.1 lakh small retail shareholders with authorized share capital up to ₹2 lakh held a 6.18% stake in the company, while Mutual Funds had a 19.14% stake, LIC held 11.1%, and Foreign Portfolio Investors had 18.66%.
The trading window for dealing in securities of Tech Mahindra is closed for all designated persons from October 17 to October 18. According to the latest company filing, the trading window closure is under the SEBI (Prohibition of Insider Trading) Regulations, 2015, and its Code of Conduct for Prohibition of Insider Trading. The window, which covers dealing in the company's securities, is closed until Saturday, October 17, 2026 (day inclusive) and will re-open on Sunday, October 18, 2026. This restriction period follows the announcement of the company's quarterly results and corporate actions to prevent insider trading and ensure fair market access during sensitive corporate announcements.
Tech Mahindra reported weaker-than-expected net profit for Q2 FY27, with the consolidated bottomline coming in at ₹1,465 crore against the consensus estimate of ₹1,607 crore shared by analysts tracked by Bloomberg. As reported by NDTV Profit, the company's revenue from operations rose 4.2% sequentially to ₹15,712 crore from ₹15,076 crore in the preceding quarter. The earnings before interest and taxes (EBIT) jumped 9.2% to ₹2,264 crore, while the EBIT margin improved by about 70 basis points to 14.4% compared to 13.7% in the January-March period. On a sequential basis, the net profit rose by 8.2% from ₹1,354 crore in the quarter ended March. Analysts are currently estimating constant-currency revenue growth of around 1.5%-1.7% quarter-on-quarter, with net new deal wins expected to be in the range of $0.9 billion-$1 billion. Brokerage firm Kotak Institutional Equities forecasts 1.6% QoQ growth driven by the contribution from the Orange deal and the ramp-up of strong deal wins of the earlier quarter, though this will be partly offset by a decline in Pininfarina revenues after a large program was delivered in 1Q.
Tech Mahindra shares closed at ₹1,524.00 on the NSE, up ₹13.50, or 0.89% on Wednesday ahead of the board meeting announcement. The current share price performance reflects market sentiment ahead of the upcoming quarterly results announcement and potential corporate actions. The shares have declined 6.4% in the past month, indicating recent volatility in the market. The company's upcoming results will provide investors with an update on demand trends across its key verticals, deal wins, margins and the broader outlook for the IT services sector. Tech Mahindra has maintained a strong dividend track record, paying ₹36 per share in July - the highest on record - and ₹168 per share over the last three years, including interim dividends of ₹15 each in October 2025 and 2024, and final dividends of ₹30 in 2025, ₹28 in 2024 and ₹32 in 2023.
