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.

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.