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.

Tech Mahindra , a leading provider of digital transformation, consulting, and business re-engineering services and solutions, has announced a strategic partnership with Abacus Insights, a healthcare technology company. The collaboration aims to enhance compliance capabilities for U.S. healthcare payers, with a specific focus on improving Centers for Medicare & Medicaid Services (CMS) interoperability compliance.

Partnership Objectives

The primary goal of this partnership is to strengthen the compliance framework within the U.S. healthcare sector. By combining Tech Mahindra's expertise in digital transformation and Abacus Insights' specialized knowledge in healthcare technology, the alliance is set to address the complex challenges faced by healthcare payers in meeting regulatory requirements.

Focus on CMS Interoperability

A key aspect of the collaboration is the emphasis on CMS interoperability compliance. Interoperability in healthcare refers to the ability of different information technology systems and software applications to communicate, exchange data, and use the information that has been exchanged. This is crucial for improving patient care, reducing healthcare costs, and enhancing overall efficiency in the healthcare system.

Impact on U.S. Healthcare Payers

The partnership between Tech Mahindra and Abacus Insights is expected to provide U.S. healthcare payers with advanced tools and solutions to navigate the increasingly complex regulatory landscape. By improving compliance capabilities, payers can potentially:

• Reduce risks associated with non-compliance
• Enhance data sharing and accessibility
• Improve operational efficiency
• Better serve their members through improved data interoperability

Industry Implications

This strategic alliance underscores the growing importance of technology-driven solutions in addressing regulatory challenges in the healthcare sector. As compliance requirements continue to evolve, partnerships that combine industry expertise with technological innovation are likely to play a crucial role in shaping the future of healthcare administration and service delivery.

The collaboration between Tech Mahindra and Abacus Insights represents a significant step towards creating more robust, compliant, and efficient systems for U.S. healthcare payers, potentially setting new standards for the industry.