Tech Mahindra reported a 16% year-on-year rise in consolidated net profit for the March quarter, supported by strong margin expansion and stable deal wins.
The Pune-headquartered IT services firm posted a net profit of Rs 1,354 crore for the fourth quarter of FY26, compared to around Rs 1,167 crore in the same period last year. Income from operations rose 12.6% year-on-year to Rs 15,076 crore in the quarter, while on a sequential basis it grew 4.7%.
Further, EBIT margin expanded to 13.8% in the quarter, up about 330 basis points year-over-year and about 70 basis points sequentially. Management reiterated confidence in maintaining margin expansion, stating that there are “multiple levers in our control” including operational efficiency and an improved revenue mix, while maintaining its target of achieving 15% margin by the end of FY27.
Deal activity remained strong during the quarter. Tech Mahindra reported new deal earnings of $1.07 billion, up 34.5% year-on-year, taking full deal earnings to $3.79 billion, an increase of over 40% over last year. The company said its “deal momentum and deal pipeline remains very strong” across sectors, including telecom, manufacturing, healthcare, BFSI and retail.
Mohit Joshi, CEO and Managing Director, Tech Mahindra, said: “We are accelerating our transition to an AI-led organization, incorporating AI across all services and expanding our capabilities to enhance value delivery to our customers. This is reflected in our highest deal wins in recent years, including consecutive quarters exceeding $1 billion in our FY27 commitments.”
