Tech Mahindra is expected to report steady revenue performance along with improved profitability in the December quarter, supported by margin expansion and cost optimization measures. According to average estimates from six brokerages, the company's revenue is projected to rise by around 7.00% year-on-year in Q3, while profit after tax is likely to jump approximately 40.00% year-on-year.

The estimated profit growth does not account for any potential impact from labour code-related provisions. However, given the strong scale of growth projected by brokerages, Tech Mahindra is likely to report profit expansion, setting it apart from many of its larger IT peers.

Revenue Outlook: Modest Growth Led by Enterprise Traction

Most brokerages anticipate that Tech Mahindra's revenue growth will remain modest on a sequential basis, pointing to a slow and steady recovery rather than a sharp bounce-back. The following table summarizes brokerage projections for sequential growth:

Nomura and Centrum Broking project sequential growth of around 0.40-0.50% in constant currency terms, supported by improving momentum in BFSI, communications, and enterprise segments. Nuvama is relatively more upbeat, forecasting constant currency growth of approximately 0.70% quarter-on-quarter, aided by seasonally stronger retail performance and incremental contributions from telecom and manufacturing.

Margins: Expansion Remains the Key Theme

Margin expansion remains the key focus for investors this quarter. Most brokerages expect Tech Mahindra to deliver notable sequential improvement in EBIT margins, driven by cost optimization measures, operational efficiencies, and a favourable currency environment.

Nuvama estimates margins to improve by about 40.00 basis points and expects Tech Mahindra to stay on track with its FY27 margin guidance of 15.00%. HSBC believes margin performance will remain aligned with the company's stated FY27 targets, underscoring confidence in management's execution on profitability.

Deal Wins and Pipeline

Deal momentum will be another critical area to monitor. Nomura expects net new deal wins in the range of ₹4,980-6,640 crores for the quarter, while Kotak Equities estimates a higher ₹7,263-7,470 crores, implying strong sequential and year-on-year growth. Kotak notes that newer deals are likely to be higher margin, which could further support profitability in the coming quarters.

Management commentary on the deal pipeline, conversion timelines and traction in Europe is expected to be closely tracked, especially amid a still-cautious global demand environment.

Key Areas for Investor Focus

Brokerage firms expect communications and enterprise verticals to drive near-term growth, with BFSI also showing early signs of improvement. However, commentary on the telecom vertical remains crucial, given its historical importance to Tech Mahindra's revenue mix.

Investors will also look for updates on recovery in the hi-tech and manufacturing sectors that have seen pressure over recent quarters. The company's ability to maintain its margin expansion trajectory while navigating potential labour code provisions will be closely monitored by market participants.

Mahindra & Mahindra Limited has completed the transfer of 50,199 equity shares from its Employees' Stock Option Trust to 50 stock option grantees on January 14, 2026. The transfers were executed under the company's Employee Stock Option Scheme, with employees exercising their vested stock options.

Stock Option Exercise Details

The company informed major stock exchanges including the National Stock Exchange of India, BSE Limited, Luxembourg Stock Exchange, and London Stock Exchange about these transfers. This notification was made in compliance with the undertaking given at the time of listing shares that were allotted to the Mahindra & Mahindra Employees' Stock Option Trust.

Major Beneficiaries

The stock option exercises showed significant variation in allocation among employees, with senior executives receiving substantial allocations:

Complete Exercise Summary

The total of 50,199 stock options were distributed among 50 employees, ranging from small allocations of 25 options to the largest single allocation of 19,558 options. Notable participants included:

• Senior Management: Rajesh Jejurikar and Ruzbeh Irani received the two largest allocations
• Mid-level Executives: Several employees received allocations between 1,000-2,000 options
• Broad Participation: The scheme included employees across various levels with allocations as small as 25 options

Compliance and Documentation

The transfer was formally documented and signed by Sailesh Kumar Daga, Company Secretary, on January 14, 2026. The company maintained full compliance with exchange requirements by providing detailed lists of all beneficiaries and their respective option exercises to all relevant stock exchanges where Mahindra & Mahindra shares are listed.

One notable inclusion was the legal heir Mrs. Smita Tanaji Patil, who exercised 40 options on behalf of Lt. Tanaji Patil, demonstrating the scheme's provisions for inheritance cases. The comprehensive list covered employees from various departments and seniority levels, reflecting the broad-based nature of the company's employee stock option program.