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 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.