Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has announced its financial results for the second quarter, ending September 30. The company demonstrated resilient performance amid challenging economic conditions, particularly in the U.S. market.

Financial Highlights

Operational Performance

Tech Mahindra secured new deals with a Total Contract Value (TCV) of $816.00 million during the quarter, representing a 35% YoY growth. The company's LTM (Last Twelve Months) deal wins increased by 57% YoY, indicating strong business momentum.

The IT services segment grew by 1.0% QoQ, while the Business Process Services (BPS) segment saw a 3.2% QoQ increase. The company maintained a healthy client profile with 26 $50+ million clients and 63 $20+ million clients.

Strategic Initiatives

Mohit Joshi, CEO and Managing Director of Tech Mahindra, highlighted the company's focus on AI-driven solutions: "We launched TechM Orion, our next-generation AI platform, and TechM Orion Marketplace to help enterprises accelerate autonomous transformation."

The company has trained over 79,000 employees in AI, with many receiving advanced certifications. Tech Mahindra also partnered with NVIDIA and AMD to accelerate AI adoption and hybrid cloud transformation across global enterprises.

Market Performance and Workforce Strategy

While Tech Mahindra experienced growth in most verticals, the company noted a decline in U.S. revenue, which executives attributed to challenging economic conditions in the region. Despite this, the company saw strong growth in Europe and maintained stable performance in other markets.

A Tech Mahindra executive revealed that the company has low reliance on H1B visas, as most of its U.S. employees are citizens or green card holders. This strategy potentially insulates the company from visa-related challenges and demonstrates a commitment to local workforce development.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹15.00 per equity share (300% of face value), reflecting the company's commitment to shareholder value.

Outlook

Rohit Anand, Chief Financial Officer, expressed optimism about the company's trajectory: "This quarter marks the eighth consecutive period of margin expansion, driven by operational efficiency and disciplined execution."

Tech Mahindra is pursuing faster growth through AI transformation and platform expansion. The company has achieved eight consecutive quarters of margin increases and reported a 57% year-over-year rise in total contract value, signaling a positive business shift.

The company executive also shared expectations for continued revenue growth in the second half, noting macro stabilization in certain areas. This positive outlook, combined with Tech Mahindra's ongoing investments in AI capabilities and success in securing large deals, suggests the company is well-positioned to navigate the evolving technology landscape and economic challenges in key markets.

Note: All currency conversions are approximate and based on the exchange rates provided in the financial statements.

Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has announced robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth and improved profitability.

Financial Highlights

The company reported impressive year-on-year growth in key financial metrics:

Tech Mahindra's EBIT (Earnings Before Interest and Taxes) margin expanded to 12.1%, up 254 basis points year-on-year, marking the eighth consecutive quarter of margin expansion.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹15.00 per equity share (300% of face value), reflecting the company's strong financial position and commitment to shareholder returns.

Operational Performance

• New deal wins reached $816 million, showing a year-on-year growth of 35%.
• The company maintained a strong cash position with free cash flow of $237 million.
• Days Sales Outstanding remained stable at 94 days.

Strategic Initiatives

Tech Mahindra continues to focus on innovation and digital transformation:

1. Launched TechM Orion, a next-generation AI platform, to accelerate enterprise autonomous transformation.
2. Introduced TechM Orion Marketplace, offering an ecosystem of intelligent AI agents.
3. Recognized as a key player in the Indian AI Mission, aligning with national objectives for AI leadership.
4. Trained over 79,000 employees in AI, with many receiving advanced certifications.

Key Partnerships

The company has formed strategic partnerships to enhance its service offerings:

• Collaborated with NVIDIA to accelerate enterprise AI transformation.
• Partnered with AMD to drive AI adoption and hybrid cloud transformation.
• Joined J.P. Morgan Payments' System Integrator Program to modernize payment infrastructure.

Management Commentary

Mohit Joshi, CEO and Managing Director, stated, "We delivered broad-based growth this quarter, reflecting the strength of our strategy and execution. We launched TechM Orion, our next-generation AI platform, and TechM Orion Marketplace to help enterprises accelerate autonomous transformation."

Rohit Anand, Chief Financial Officer, added, "This quarter marks the eighth consecutive period of margin expansion, driven by operational efficiency and disciplined execution. Our deal TCV is up 57% year-on-year on LTM basis, supported by strong deal conversions."

Tech Mahindra's strong Q2 FY26 performance, coupled with its focus on AI and digital transformation, positions the company well for continued growth in the evolving technology landscape. The declared interim dividend further underscores the company's financial strength and commitment to delivering value to its shareholders.