Tech Mahindra delivered a strong performance in the December quarter, posting a 14.1% year-on-year increase in consolidated net profit to ₹1,122 crore, driven by significant margin expansion and sharper operational execution. Revenue from operations rose 8.3% to ₹14,393 crore in Q3 FY26, signalling steady business momentum even as global technology spending remains cautious. Operating profitability improved sharply, with EBIT jumping 40.1% year on year to ₹1,892 crore and margins expanding to 13.1%, reflecting tighter cost controls and improved delivery efficiency.
A key highlight of the quarter was the company’s deal momentum. New deal wins reached $1.1 billion, marking a 47% increase compared to the same period last year. Management indicated that deal quality and duration are improving, with clients showing greater willingness to commit to longer-term engagements rather than short, tactical projects. Mohit Joshi, CEO and managing director of Tech Mahindra, said, “Our deal wins on an LTM basis are the highest we have achieved in the past five years, reflecting an improved deal-win run-rate over the past several quarters.”
The strong deal pipeline is beginning to translate into more predictable revenue visibility, even as clients remain selective in discretionary spending. The company noted that demand traction is improving across key verticals, supported by transformation-led programmes rather than pure cost-takeout deals.
On the financial side, Tech Mahindra continued to strengthen its profitability and cash position. Rohit A., CFO of Tech Mahindra, highlighted the consistency of the turnaround underway, noting that the company has now delivered nine consecutive quarters of margin expansion alongside healthy cash generation. He added that “The company remains on track to achieve its FY27 goals,” reinforcing management’s confidence in its medium-term strategy.
Artificial intelligence emerged as a central pillar of growth during the quarter. Tech Mahindra pointed to expanding partnerships around Gemini Enterprise and its AWS Generative AI Competency as evidence that clients are moving beyond experimentation. These engagements increasingly involve multi-year AI programmes that are embedded into core operating and delivery models, rather than isolated pilots.
Overall, the December quarter performance underscores Tech Mahindra’s progress in rebuilding profitability, strengthening its deal engine, and aligning its offerings with AI-led transformation, positioning the company more competitively as demand conditions gradually stabilise.
