Tech Mahindra Results: EBIT up 40.1 per cent to Rs 1,892 crore; New deals won of USD 1,096 million

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Tech Mahindra Results: EBIT up 40.1 per cent to Rs 1,892 crore; New deals won of USD 1,096 million

Tech Mahindra is part of the Mahindra Group, founded in 1945, one of the largest and most admired multinational federations of companies.

Tech Mahindra has reported a robust financial performance for the quarter ended December 31, 2025, highlighted by a significant surge in profitability and deal momentum. The company achieved an EBIT of Rs 1,892 Crore, marking a substantial 40.1 per cent year-on-year (YoY) increase, while revenue reached Rs 14,393 Crore, up 8.3 per cent YoY. This financial strength is further reflected in the company's operating margins, with EBIT margins expanding by approximately 290 basis points YoY to reach 13.1 per cent. Profit After Tax (PAT) stood at Rs 1,122 Crore, while operational PAT saw an even more impressive jump of 34.9 per cent compared to the previous year, underscoring the company’s improved execution and cost management strategies.

The quarter was defined by exceptional growth in new business, with total contract value (TCV) for new deal wins hitting USD 1,096 million. This represents a 47 per cent increase YoY and a 34.3 per cent rise from the previous quarter, signalling strong market demand for Tech Mahindra’s digital and consulting services. Notable wins spanned various geographies and sectors, including a major application modernisation contract with a leading European telecommunications provider and a strategic partnership with a global Aerospace manufacturer for support engineering. In the United States, the company secured large-scale digital transformation and system integration projects from prominent healthcare and Banking institutions, reinforcing its presence in high-value, mission-critical domains.

A central theme of the quarter’s success was the integration of Artificial Intelligence (AI) as a core growth engine. Tech Mahindra is actively shifting from AI pilots to scaled, multi-year programs embedded within client operating models. Key initiatives include a partnership with Google to accelerate the adoption of Gemini Enterprise and achieve the AWS Generative AI Competency. Furthermore, the company is playing a pivotal role in the Indian AI Mission by developing localised Large Language Models (LLMs) like TechM Orion in Hindi and focusing on AI-driven educational tools. These advancements are supported by new global collaborations, such as a Memorandum of Understanding with The University of Texas at Dallas to launch a Makers Lab in the US.

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Beyond AI, the company is expanding its footprint in sustainability and emerging technologies through strategic partnerships and platform launches. The introduction of "i.GreenFinance" aims to revolutionise sustainable lending for global financial institutions, while collaborations with Strangeworks and DFKI focus on quantum computing and next-generation smart factory solutions, respectively. Despite a slight reduction in total headcount to 149,616, the company maintained healthy operational metrics with IT attrition at 12.3 per cent and a strong cash position of Rs 7,666 Crore. These results position Tech Mahindra as a leader in driving digital resilience and innovation for its global enterprise clients heading into 2026.

About Tech Mahindra

Tech Mahindra offers technology consulting and digital solutions to global enterprises across industries, enabling transformative scale at unparalleled speed. With 149,000+ professionals across 90+ countries helping 1100+ clients, Tech Mahindra provides a full spectrum of services, including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, AI & analytics and cloud & infrastructure services. It is the first Indian company in the world to have been awarded the Sustainable Markets Initiative’s Terra Carta Seal, which recognises global companies that are actively leading the charge to create a climate and nature-positive future. Tech Mahindra is part of the Mahindra Group, founded in 1945, one of the largest and most admired multinational federations of companies.

Disclaimer: The article is for informational purposes only and not investment advice.