Tech Mahindra concluded FY26 with strong momentum, reporting full-year revenues of USD 6.385 billion. The company achieved an operating profit of USD 797 million, reflecting a 31.4% year-on-year growth. Strategic focus areas include large deal wins, AI-led operational efficiency, and a transformation journey centered on AI-first capabilities. Management emphasized their commitment to achieving an EBIT margin of 15% in the upcoming fiscal year.
Full-Year Financial Performance
Tech Mahindra reported a solid close to the 2026 financial year, with revenues reaching USD 6.385 billion, representing a 1.9% increase on a reported basis. The company demonstrated significant margin expansion, with operating profits rising to USD 797 million, a 31.4% year-on-year improvement. Margins expanded by 290 basis points to reach 12.6%, driven by the successful implementation of the Project Fortius operational efficiency program.
Strategic Growth Pillars
The company achieved record-breaking deal momentum, securing USD 3.79 billion in total deal wins, a 42% growth year-on-year. Key growth was led by the Retail, Travel, Transportation, and Logistics vertical, which grew 7.3%, and the Manufacturing vertical, which grew 5.9%. Management highlighted a commitment to AI-led transformation, noting that 95% of prime accounts are now engaged with generative AI offerings.
AI-First Strategy and Innovation
Tech Mahindra is actively transitioning to an AI-first organization. This strategy includes the launch of the TechM Helix and Orion platforms, designed to facilitate agentic AI and enterprise data modernization. The company has focused on democratizing AI across all service lines and has established a robust pipeline of 350 industry-specific AI agents, reinforcing their position as a strategic partner for complex digital transformation.
Outlook for FY27
As the company enters the final year of its three-year transformation journey, leadership reiterated their FY27 targets. The focus remains on profitable growth and reaching an EBIT margin of 15%. Key pillars for the upcoming year include scaling AI-infused solutions, maintaining high standards of customer satisfaction (as evidenced by industry-leading NPS scores), and executing a disciplined capital allocation policy, highlighted by a total dividend of ₹51 per share for the year.
Source: BSE
