Tech Mahindra reported strong quarterly results for the second quarter of fiscal year 2026, with revenue reaching ₹13,995 crore and new deals worth $816 million. The company achieved this growth through broad-based gains in key sectors, while continuing its streak of margin improvements amid a focus on AI and efficiency.
Key Financial Performance Highlights
Tech Mahindra’s revenue from operations grew to ₹13,995 crore in the July to September period, marking a 5.1 percent increase year over year from ₹13,313 crore. This also showed a 4.8 percent rise from the previous quarter’s ₹13,351 crore.
Net profit stood at ₹1,195 crore, reflecting a 5 percent sequential increase from ₹1,140 crore in the first quarter. However, it dipped 4.4 percent compared to the same period last year, partly due to a high base from one-time gains in the prior year.
The company declared an interim dividend of ₹15 per share, signaling confidence in its financial health. In dollar terms, revenue hit $1.59 billion, up 1.4 percent quarter over quarter but slightly down 0.2 percent year over year.
Here is a quick comparison of key metrics:
| Metric | Q2 FY26 | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue (₹ crore) | 13,995 | 13,351 | 13,313 |
| Net Profit (₹ crore) | 1,195 | 1,140 | 1,250 |
| EBIT Margin (%) | 12.1 | 11.0 | 9.6 |
This table shows steady progress, especially in margins.
Strong Deal Wins Drive Momentum
Tech Mahindra secured net new deals valued at $816 million during the quarter, a sharp 57 percent jump over the trailing 12 months. These wins spanned critical areas like communications, manufacturing, retail, transport, and logistics.
Company leaders noted that growth came from diverse sectors, including banking, financial services, insurance, healthcare, and manufacturing. The manufacturing segment alone drove about three-fifths of the incremental revenue.
Top clients performed well, with those generating over $20 million in revenue contributing more than $1 billion this quarter. This broad momentum helped offset challenges in other areas.
- Communications and media deals focused on network upgrades.
- Manufacturing wins involved digital transformation projects.
- Retail and logistics contracts emphasized supply chain efficiency.
These deals position the company for sustained growth in a competitive IT services market.
Margin Gains Under Project Fortius
EBIT margins expanded to 12.1 percent, up 108 basis points from the prior quarter and continuing an eight-quarter streak of improvements. This success stems from Project Fortius, a multi-year initiative aimed at boosting operational efficiency and targeting 15 percent margins by fiscal year 2027.
Cost optimization, value-based pricing, and productivity gains played key roles. Free cash flow reached $237 million, with a strong ratio to profit after tax.
The company has maintained this upward trend since outlining its fiscal 2027 plans, showing disciplined execution. Analysts view this as a sign of recovery after last year’s profit challenges.
AI Initiatives and Innovation Push
Tech Mahindra made strides in artificial intelligence, launching TechM Orion, a next-generation platform for handling complex workflows autonomously. It also introduced an AI marketplace to help businesses scale solutions quickly.
The firm partnered in the IndiaAI Mission to build a sovereign large language model with one trillion parameters, a step toward advanced indigenous tech. These moves align with global trends where AI drives IT spending.
Joshi, the CEO, highlighted how these innovations support client needs in a fast-evolving digital landscape. Recent events, like collaborations with tech giants on AI tools, add to this momentum.
Outlook and Strategic Focus
Looking ahead, Tech Mahindra expects the second half of fiscal 2026 to build on this foundation with decisive actions for competitive gains. The company aims to leverage its AI focus and efficiency drives for further growth.
While modest compared to peers, this quarter’s results indicate steady progress. Factors like global economic recovery and rising demand for digital services could boost performance.
Share your thoughts on Tech Mahindra’s results in the comments below, and spread the word by sharing this article with fellow investors and tech enthusiasts.
