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Mindteck Q1 profit falls 4.5 per cent as costs rise
Consolidated revenue grows 2.7 per cent year-on-year to Rs 104.08 crore, while PAT declines to Rs 8.36 crore
Bengaluru: Mindteck (India) reported a 4.5 per cent year-on-year decline in consolidated net profit to Rs 8.36 crore for the first quarter of FY27, as higher employee and subcontracting costs weighed on margins despite steady revenue growth.
Consolidated revenue from operations rose 2.74 per cent year-on-year to Rs 104.08 crore in the quarter ended June 30, 2026, compared with Rs 101.30 crore in the same quarter last year. Revenue was marginally higher than the Rs 103.91 crore recorded in the preceding quarter.
Total consolidated income, including other income of Rs 2.83 crore, stood at Rs 106.91 crore.
Profit before tax before exceptional items was Rs 9.62 crore, while total comprehensive income stood at Rs 10.02 crore. Basic earnings per share declined to Rs 2.62 from Rs 2.74 a year earlier and Rs 3.18 in the previous quarter.
The Bengaluru-headquartered technology and product engineering services provider saw consolidated expenses rise to Rs 97.29 crore in Q1 FY27 from Rs 94.56 crore in the preceding quarter.
Employee benefits remained the largest cost component at Rs 62.86 crore, compared with Rs 61.90 crore in Q4 FY26. Technical subcontracting expenses also increased to Rs 26.13 crore from Rs 24.63 crore.
Other operating expenses stood at Rs 6.96 crore, while depreciation and amortisation came in at Rs 1.12 crore. Finance costs remained limited at Rs 22 lakh.
Mindteck’s revenue remained diversified across key international markets. The Rest of the World contributed Rs 46.87 crore, followed by the US at Rs 40.20 crore and India at Rs 17.01 crore.
On a standalone basis, revenue from operations declined to Rs 33.93 crore in Q1 FY27 from Rs 36.92 crore in the preceding quarter and Rs 35.15 crore a year earlier. Standalone net profit fell to Rs 3.84 crore from Rs 5.19 crore in Q4 FY26 and Rs 4.66 crore in Q1 FY26.
The company said profitability was affected by investments in AI capabilities and higher manpower costs, even as demand remained steady across sectors including medical devices, semiconductors, analytical instruments and storage.
Mindteck is focusing on improving bench utilisation, optimising its global delivery mix and strengthening execution to support margin recovery.
