Tech Mahindra Reports Robust Q2 FY26 Performance with 1.6% Sequential Growth and Margin Expansion

Tech Mahindra , a leading Indian IT services company, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating resilience and growth across key metrics.

Financial Highlights

Metric	Q2 FY26 Value	Growth/Change
Revenue	$1,586.00 million	1.6% QoQ (CC)
EBIT Margin	12.1%	8 consecutive quarters of improvement
Net New Deal Wins	$816.00 million	57% increase (LTM basis)
Free Cash Flow	$237.00 million	120.8% FCF to PAT ratio (YTD)

The company's performance in Q2 FY26 marks its strongest quarterly growth in 10 quarters, with a 1.6% sequential increase in constant currency terms. This growth was accompanied by a continued expansion in EBIT margin, which reached 12.1%, extending the streak of margin improvement to eight consecutive quarters.

Sector-wise Performance

Tech Mahindra witnessed broad-based growth across several key verticals:

Manufacturing: 5.2% YoY growth
BFSI (Banking, Financial Services, and Insurance): 6.2% YoY growth
Retail, Transport & Logistics: 7.2% YoY growth

The communications vertical, while declining 2.2% year-on-year, maintained stability.

Client Acquisition and Revenue Contribution

The company's strategy to focus on high-value clients has shown positive results:

The $20 million plus client bucket delivered above-company average growth
Contributions from this segment surpassed $1 billion
21 new must-have accounts added in the first two quarters
17 of these new accounts already generating over $1 million in revenue each

Innovation and Recognition

Tech Mahindra continues to invest in cutting-edge technologies:

Launched TechM Orion, an agentic AI platform
Recognized as a leader in Gartner's Gen AI Consulting services quadrant

Shareholder Returns

The Board of Directors has recommended a dividend of Rs. 15.00 per share, demonstrating the company's commitment to delivering value to its shareholders.

Conclusion

Tech Mahindra's Q2 FY26 results reflect a strong performance characterized by revenue growth, margin expansion, and strategic client acquisitions. The company's focus on innovation and its ability to secure significant deal wins position it well for continued growth in the evolving IT services landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.11%	-0.66%	-6.44%	+10.77%	-14.80%	+75.65%

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 operational efficiency.

Financial Highlights

Metric	Value	Change
Revenue	₹13,995.00 crores	Up 5.1% YoY, 4.8% QoQ
EBIT	₹1,699.00 crores	Up 32.7% YoY
Consolidated PAT	₹1,195.00 crores	Up 4.7% QoQ
New deal wins	$816.00 million	Up 35% YoY

Operational Performance

The company reported an EBIT margin of 12.1%, up 108 basis points QoQ and 254 basis points YoY, reflecting improved operational efficiency. The IT services segment grew by 1.0% QoQ, while the Business Process Services (BPS) segment saw a 3.2% QoQ increase.

Strategic Initiatives and AI Focus

Tech Mahindra has made significant strides in artificial intelligence (AI) adoption and implementation:

Launched TechM Orion, a next-generation agentic AI platform
Introduced TechM Orion Marketplace, offering an ecosystem of intelligent AI agents
Recognized as an Emerging Leader in Gartner's 2025 Emerging Market Quadrant for Generative AI Consulting and Implementation Services
Trained over 79,000 employees in AI, with many receiving advanced certifications

Key Partnerships

The company has formed strategic partnerships to enhance its AI and cloud capabilities:

Collaborated with NVIDIA to accelerate enterprise AI transformation
Entered a multi-year partnership 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 of Tech Mahindra, stated, "We delivered broad-based growth this quarter, reflecting the strength of our strategy and execution. Being recognized by industry analysts reinforces our leadership in advancing next-generation AI."

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 ₹15.00 per share (face value ₹5.00), underscoring the company's commitment to shareholder value.

Tech Mahindra's Q2 FY26 results demonstrate the company's resilience and strategic focus on AI-driven growth, positioning it well for future success in the rapidly evolving technology landscape.