Tech Mahindra's board weighs first bonus share issue in 11 years

Tech Mahindra, part of India's Mahindra Group and one of the country's biggest IT services exporters, reported its July-September quarterly results on October 15, 2026. Street estimates pointed to profit after tax rising 30-40% year-on-year, helped by stronger deal momentum in communications and manufacturing verticals and improving margins after a multi-year restructuring programme. The main event for investors, however, was the board's scheduled discussion of a dividend payout together with a bonus share issue; if approved, it would be Tech Mahindra's first bonus issue in 11 years and would be read as a sign of management confidence in medium-term cash generation. The announcement came against a cautious backdrop for Indian IT, with clients delaying some discretionary technology spending and generative AI reshaping pricing on legacy outsourcing contracts. Peers Infosys, TCS and Wipro had already set the tone earlier in October with mixed numbers and conservative guidance. Shares in Tech Mahindra had rallied into the result on expectations of the bonus and higher dividend, making the stock one of the most actively watched names on India's benchmarks on October 15.