Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported robust growth in profitability and deal wins, despite a challenging macroeconomic environment.

Key Financial Highlights

• Revenue: ₹13,351.00 crores, up 2.7% year-over-year (YoY)
• EBIT (Earnings Before Interest and Taxes): ₹1,477.00 crores, up 34.0% YoY
• EBIT Margin: 11.1%, up 260 basis points YoY
• Profit After Tax: ₹1,141.00 crores, up 34.0% YoY
• Diluted Earnings Per Share: ₹12.86

Strong Deal Momentum

Tech Mahindra reported impressive growth in new deal wins, with Total Contract Value (TCV) reaching $809.00 million in Q1 FY26, representing a substantial 51% increase YoY. The company's Last Twelve Months (LTM) deal wins have increased by 44%, indicating strong business momentum across verticals and geographies.

Operational Performance

• Total headcount stood at 148,517, up 897 YoY
• IT services attrition rate (LTM) was 12.6%, compared to 11.8% in the previous quarter
• Free Cash Flow for the quarter was $86.00 million

Management Commentary

Mohit Joshi, CEO and Managing Director of Tech Mahindra, stated, "Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies."

Rohit Anand, Chief Financial Officer, added, "We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements."

Strategic Initiatives and Partnerships

Tech Mahindra has been actively pursuing strategic partnerships and initiatives to enhance its capabilities, particularly in the areas of AI and cloud technologies:

• Launched a new managed services offering for Cisco Multicloud Defense
• Named a Red Hat Premier Partner globally
• Announced partnerships with ServiceNow, CrateDB, Nuix, and KOGO AI to deliver next-generation solutions in various domains

Focus on AI and Innovation

The company has made significant strides in AI adoption and innovation:

• Developed a portfolio of 200+ enterprise-grade AI agents across industry segments
• Filed a patent for VerifAI, an AI assurance tool
• Trained over 77,000 employees in AI and Gen AI

Outlook

While Tech Mahindra did not provide specific guidance for the upcoming quarters, the strong deal pipeline and focus on operational efficiency suggest a positive outlook for the company. The continued emphasis on AI, cloud technologies, and strategic partnerships positions Tech Mahindra well to capitalize on the growing demand for digital transformation services.

In conclusion, Tech Mahindra's Q1 FY26 results demonstrate the company's resilience and ability to drive growth and profitability in a challenging market environment. With a strong deal momentum and strategic focus on emerging technologies, the company appears well-positioned for sustained growth in the coming quarters.

Tech Mahindra , a leading global provider of digital transformation, consulting, and business re-engineering services, has announced its financial results for the first quarter, ending June 30. The company reported strong growth in profitability and significant new deal wins, demonstrating resilience in a challenging global economic environment.

Financial Highlights

New Deal Wins and Business Performance

Tech Mahindra secured new deals with a Total Contract Value (TCV) of $809.00 million during the quarter, representing a significant 51% YoY growth. The company's deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies.

Operational Metrics

Segment Performance

Management Commentary

Mohit Joshi, CEO and Managing Director of Tech Mahindra, stated, "Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies."

Rohit Anand, Chief Financial Officer, added, "We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organization. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements."

Key Business Highlights

1. Tech Mahindra was selected as a key 'growth partner' by a leading US-based consumer wireless operator for its Customer Operations transformation.

2. The company secured a contract with a Railroad company in the Americas region for support and development of applications across multiple corporate functions.

3. A multi-year strategic engagement was won with a leading global fashion apparel brand for digital and data transformation services.

4. Tech Mahindra was chosen to consolidate, modernize, and digitize IT systems for a leading global insurance and asset management company's Japanese subsidiary.

5. The company announced partnerships with several technology leaders, including ServiceNow, Red Hat, and Cisco, to enhance its service offerings and capabilities.

Focus on Artificial Intelligence

Tech Mahindra has made significant strides in AI integration:

• Developed a portfolio of 200+ enterprise-grade AI agents across industry segments
• Filed a patent for VerifAI, ensuring data validation in agentic pipelines
• Trained over 77,000 employees in AI and Gen AI

Conclusion

Tech Mahindra's Q1 results demonstrate the company's ability to drive growth and profitability amid global economic uncertainties. With a strong focus on AI-driven solutions and strategic partnerships, the company is well-positioned to capitalize on emerging opportunities in the digital transformation landscape.