Tech Mahindra posted robust Q3 FY2026 results with EBIT jumping 40.1% year-on-year to ₹1,892 crores, driven by AI-led offerings and improved deal momentum across global markets.
Revenue Growth Accelerates Amid AI Transformation
Tech Mahindra (NSE: TECHM) reported revenue of ₹14,393 crores (USD 1,610 million) for the quarter ended December 31, 2025, marking 2.8% sequential growth and 8.3% annual growth as enterprise AI adoption accelerates.
Q3 FY2026 Financial Performance Snapshot
| Metric | Value | Growth |
|---|---|---|
| Revenue (₹) | ₹14,393 Cr | +8.3% YoY, +2.8% QoQ |
| EBIT (₹) | ₹1,892 Cr | +40.1% YoY, +11.3% QoQ |
| EBIT Margin | 13.1% | +290 bps YoY, +100 bps QoQ |
| PAT (₹) | ₹1,122 Cr | +14.1% YoY |
| New Deal Wins | USD 1,096 Mn | +47% YoY, +34.3% QoQ |
Ninth Consecutive Quarter of Margin Expansion
CEO Mohit Joshi highlighted that LTM deal wins reached a five-year high, reflecting enhanced sales execution and growing demand for AI-powered solutions. The company’s solution-oriented go-to-market approach is resonating with clients seeking digital transformation partners.
CFO Rohit Anand emphasized sustained margin expansion and improved cash generation, with free cash flow reaching USD 194 million. Days of Sales Outstanding improved to 90 days, demonstrating disciplined working capital management as the company tracks toward FY27 targets.
Strategic Deal Wins Across Verticals
Tech Mahindra secured major engagements including application modernization for a European telecom giant, HCM implementation for a global SaaS provider, and enterprise digital transformation for US healthcare and banking institutions. These wins validate the company’s deep-domain expertise in mission-critical platforms.
AI Becomes Core Growth Engine
The quarter marked AI’s transition from experimentation to scaled execution. Tech Mahindra partnered with Google Cloud to accelerate Gemini Enterprise adoption and achieved AWS Generative AI Competency recognition. The company launched i.GreenFinance for sustainable lending and expanded its US presence with a Makers Lab at University of Texas at Dallas.
Strategic collaborations with Strangeworks for quantum computing and DFKI for smart factory solutions position Tech Mahindra at the innovation frontier. The Indian AI Mission initiative includes developing education-focused LLMs and localizing TechM Orion in Hindi.
With 149,616 employees globally and LTM attrition at 12.3%, Tech Mahindra maintains operational stability while pursuing aggressive growth through AI-led transformation.
