Tech Mahindra Board to Discuss Bonus Issue, Interim Dividend in October 15-16 Meetings

Tech Mahindra is expected to make two significant moves in October regarding its business operations. The IT services firm’s board is scheduled to discuss bonus issuance and interim dividend payment proposal for the financial year 2026-27 in October 15 and 16 meetings. 

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Tech Mahindra's audited standalone and consolidated financial statements for the second quarter and six months period ending September 30, 2026 are also up for discussion during the board meeting. It is worth noting that the firm says that its quarterly results will be reviewed and declared on October 15. 

This development makes the Tech Mahindra shares a subject of interest on October 1, Thursday, with more information like the ratio of bonus and interim dividend yet to be disclosed. 

Tech Mahindra May Announce First Bonus Issue Since 2015 

If approved, this would mark Tech Mahindra’s first bonus share issue since March 2015. 

During its previous bonus issue, the company allotted one bonus share for every one share held by shareholders. 

For the latest proposal, however, Tech Mahindra has not yet disclosed the bonus ratio or other details. These are expected to be considered by the board at the upcoming meeting. 

Interim Dividend Proposal Also on the Table 

Alongside the bonus issue, the board will consider declaring an interim dividend for FY27. 

The amount of the proposed dividend has not been announced yet. 

Tech Mahindra had announced a dividend of ₹36 per share in July, its highest-ever payout. Over the past three years, the company has distributed a total of ₹168 per share in dividends. 

This included interim dividends of ₹15 per share each in October 2025 and October 2024. The company had also announced final dividends of ₹30 per share in 2025, ₹28 in 2024 and ₹32 in 2023. 

Q2 FY27 Results Due on October 15 

Apart from the shareholder-related proposals, Tech Mahindra’s second-quarter performance will also be in focus. 

Kotak Institutional Equities expects the company to report 1.6% quarter-on-quarter growth, helped by contribution from the Orange deal and the ramp-up of strong deal wins from the previous quarter. This could be partly offset by lower Pininfarina revenue following the completion of a large programme in the first quarter. 

The brokerage expects margins to remain steady, with benefits from rupee depreciation and efficiencies being offset by an 80-basis-point impact from wage revisions. 

It also expects a foreign exchange loss of $25 million during the quarter and forecasts net new deal wins of around $0.9 billion. That would be lower than the preceding three quarters but represent 10% year-on-year growth, according to the brokerage. 

With quarterly earnings, a possible bonus issue and an interim dividend all on the agenda, Tech Mahindra’s October 15-16 board meeting will bring clarity on several announcements currently under consideration.