Tech Mahindra announces 1:1 bonus issue, Rs 15 interim dividend; check record date

Tech Mahindra on Thursday announced a 1:1 bonus share issue and declared an interim dividend of Rs 15 per share, giving shareholders a double reward as the IT services company marks its 40th anniversary. The announcements came alongside its September-quarter earnings, which showed strong growth in profit and operating margins.

The company's board recommended issuing one additional fully paid-up equity share for every share held by eligible shareholders. This means an investor holding 1 Tech Mahindra share would receive another 1 share.

The bonus issue, which will be subject to shareholder approval through a postal ballot and other applicable regulatory requirements, will have a record date announced separately, according to the company's exchange filing.


Also Read: Tech Mahindra Q2 Results: Net profit jumps 33% YoY to Rs 1,586 crore; co declares Rs 15/share dividend, 1:1 bonus issue


Tech Mahindra said the bonus issue would involve the allotment of approximately 98.02 crore new shares with a face value of Rs 5 each, amounting to about Rs 490 crore. The bonus shares will be issued by capitalising the company's securities premium account, general reserves, retained earnings or other permitted reserves.

According to its regulatory filing, the company expects the bonus shares to be credited to eligible shareholders by December 15, 2026, subject to the necessary approvals.

A bonus issue increases the number of shares held by investors without requiring them to make any additional payment. However, it does not automatically increase the value of their investment, as the share price is adjusted to reflect the higher number of outstanding shares.

Tech Mahindra dividend record date

Separately, the board declared an interim dividend of Rs 15 per equity share with a face value of Rs 5 each, representing a payout of 300% of face value for FY27. The company has fixed Friday, October 23, 2026, as the record date for determining shareholders eligible to receive the interim dividend.

The dividend will be paid by November 13, 2026, through electronic mode to eligible shareholders whose names appear in the company's records as of the record date.

October 23 is the record date for the interim dividend alone. Tech Mahindra has yet to announce the record date for its proposed bonus issue.

The dividend declaration comes as the company continues to focus on shareholder returns while investing in artificial intelligence and expanding its technology services business.

Rohit Anand, Chief Financial Officer at Tech Mahindra, said the company had delivered another strong quarter, with margins expanding for the twelfth consecutive quarter.

"We continue to invest in AI to improve productivity, drive innovation and build capabilities for future growth," Anand said, adding that the Rs 15 interim dividend reaffirmed the company's commitment to shareholders.

Tech Mahindra Q2 earnings

The shareholder announcements accompanied second-quarter results, with Tech Mahindra reporting a 33% year-on-year increase in consolidated profit attributable to shareholders to Rs 1,586 crore, compared with Rs 1,195 crore in the corresponding quarter last year.

Revenue from operations rose 16% to Rs 16,180 crore from Rs 13,995 crore a year earlier. In constant currency terms, revenue grew 7% YoY and 2.4% sequentially.

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