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 its financial results for the second quarter of fiscal year 2026, showcasing robust growth and improved profitability across key sectors.

Financial Highlights

Tech Mahindra reported a consolidated net profit of ₹11.95 billion for Q2 FY26, up from ₹11.41 billion in the previous quarter. This represents a quarter-on-quarter growth of 4.7%. The revenue for the quarter stood at ₹139.95 billion, marking an increase from ₹133.5 billion in Q1 FY26, reflecting a 4.8% growth quarter-on-quarter.

Key financial metrics for Q2 FY26 include:

Operational Performance

Tech Mahindra's performance was marked by broad-based growth across its business segments. The IT services segment grew by 1.0% quarter-on-quarter, while the Business Process Services (BPS) segment showed a stronger growth of 3.2% quarter-on-quarter.

Notably, the company reported significant growth across manufacturing, BFSI, and healthcare sectors. This growth contributed to Tech Mahindra achieving its highest quarterly revenue growth in 10 quarters when adjusted for constant currency.

The company's deal win momentum remained strong, with new deal wins totaling $816 million for the quarter, representing a significant year-on-year growth of 35%. On a last twelve months (LTM) basis, the deal Total Contract Value (TCV) was up by 57% year-on-year, indicating a robust pipeline and strong deal conversions.

Strategic Initiatives and AI Focus

Tech Mahindra has been making significant strides in artificial intelligence (AI) capabilities:

• Launched TechM Orion, a next-generation AI platform, enabling enterprises to deploy and manage AI solutions more efficiently.
• Introduced TechM Orion Marketplace, offering an ecosystem of intelligent, autonomous AI agents.
• Recognized by the Government of India as a key player in the Indian AI Mission.
• Trained over 79,000 employees in AI, with many receiving advanced certifications.

Management Commentary

Mohit Joshi, CEO and Managing Director of Tech Mahindra, 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."

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹15 per equity share (300% on face value of ₹5), reflecting the company's commitment to shareholder value.

Outlook

With its strong focus on AI-driven solutions, robust deal pipeline, and continuous margin improvements, Tech Mahindra appears well-positioned for sustained growth. The company's investments in next-generation technologies and its ability to secure large deals across various sectors indicate a positive outlook for the coming quarters.

As Tech Mahindra continues to expand its AI capabilities and drive digital transformation for its clients, it remains a key player to watch in the global IT services landscape, particularly given its impressive performance in manufacturing, BFSI, and healthcare sectors.