Tech Mahindra has announced the incorporation of a new step-down subsidiary in Uganda, expanding its operational footprint in the African market as part of its strategic growth initiative. The company received intimation on December 22, 2025, at 9:11 p.m. (IST) that the certificate of incorporation had been issued by the Office of the Registrar of Companies in Uganda.

Subsidiary Structure and Ownership

The newly incorporated entity, Yabx Technologies Uganda Limited (Yabx Uganda), has been established through a multi-tier subsidiary structure. Yabx Technologies (Netherlands) B.V. holds 100% shareholding in the Uganda entity, while the Netherlands company itself is a wholly-owned subsidiary of Comviva Technologies Limited, which is a subsidiary of Tech Mahindra.

Business Objectives and Market Focus

Yabx Uganda has been incorporated with the primary objective of providing software and analytics platform services to clients in Uganda. The business model aligns with Tech Mahindra's main line of operations in the Information Technology sector. The subsidiary will specifically target banks, micro-financial institutions, and other lending organizations as its prospective client base.

Regulatory Compliance and Disclosure

Tech Mahindra has fulfilled its disclosure obligations under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The incorporation does not fall within the purview of Related Party Transactions for the parent company, as confirmed in the regulatory filing.

Strategic Implications

The establishment of Yabx Uganda represents Tech Mahindra's continued expansion strategy in emerging markets. As a newly incorporated entity, Yabx Uganda has not yet commenced business operations, and therefore no turnover figures are applicable at this stage. The subsidiary's focus on software and analytics platforms positions it to serve the digital transformation needs of Uganda's financial services sector.

The incorporation strengthens Tech Mahindra's presence in the African continent through its subsidiary network, enabling the company to provide localized technology solutions while maintaining its global service delivery capabilities.

Tech Mahindra Limited has received a significant order from the Regional Provident Fund Commissioner regarding alleged non-remittance of provident fund contributions. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Regulations, emphasizing that no material financial impact is expected from the order.

Order Details and Financial Impact

The Regional Provident Fund Commissioner-I, Pune-I has issued an order under Section 7A of the Employees Provident Funds And Miscellaneous Provisions Act, 1952. The order demands a total of ₹1,287.44 crores for alleged non-remittance of PF contributions for the period from May 2014 to March 2016.

Nature of Allegations

The Employees Provident Fund Organization (EPFO) has alleged non-remittance by Tech Mahindra of Provident Fund contributions for certain identified domestic employees and employees deputed in foreign locations in non-SSA countries. The order specifically relates to employees in countries with which India does not have Social Security Agreements.

The company is required to remit the demanded amount to the Provident Fund accounts of the identified employees across both domestic and international locations.

Company's Response and Assessment

Tech Mahindra has indicated its intention to challenge the order through the appellate process. The company's key positions include:

• An appeal will be filed against the order
• The company is hopeful of a favorable outcome at the appellate level
• No material financial impact is expected from the said order
• Appropriate disclosures have already been made as part of contingent liabilities in audited financial statements

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Tech Mahindra has also made this information available on its website at www.techmahindra.com , ensuring transparency with stakeholders and regulatory compliance.

The company maintains that based on its assessment, the order does not reasonably pose any material financial impact, suggesting confidence in its legal position for the upcoming appellate proceedings.