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

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.

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.