Tech Mahindra reported a strong second quarter for FY27, with revenues growing 6.8% year-on-year to US$1.693 billion. The company highlighted broad-based growth across verticals, a 12th consecutive quarter of margin expansion, and strategic advancements in AI through its ‘Helix’ initiative. Key AI developments include new partnerships and the launch of AI-native solutions, positioning the company for future growth.
Tech Mahindra Reports Strong Q2 FY27 Performance
Tech Mahindra Limited announced its financial results for the quarter ended September 30, 2026, showcasing robust performance with revenues reaching US$1.693 billion. This represents a 6.8% increase year-on-year on a reported basis, and 7.2% growth on a constant currency basis. The company achieved its 12th consecutive quarter of margin expansion, with operating margins standing at 14.8%.
Broad-Based Growth Across Verticals
The growth was broad-based, with key verticals demonstrating positive momentum. The Communications segment grew 9.5% year-on-year, driven by large deal ramp-ups and new engagements. Retail, Travel, and Logistics saw a 9.2% increase, supported by new client wins. BFSI grew 4.6% year-on-year, and Manufacturing posted 7% growth, while Hi-Tech grew 6.7% year-on-year.
AI-Led Transformation and Helix Initiative
A significant focus for the quarter was the advancement of Tech Mahindra’s AI strategy, primarily through its ‘Helix’ initiative. The company is strengthening platforms, partnerships, and industry capabilities to deliver AI-led transformation. Several AI-driven engagements were secured across various sectors, including professional services, healthcare, and communications. Tech Mahindra also highlighted its commitment to responsible AI, embedding it across the solution lifecycle.
Strategic Partnerships and Innovation
The company emphasized its strategic partnerships with leaders like AWS, Google Cloud, Microsoft, SAP, and ServiceNow, aiming to co-create differentiated solutions. Investments in innovation continue, including work with the Quantum Technology Foundation for quantum computing and the launch of AI models like Indus-Terra. Deal wins for the quarter totaled US$1.023 billion, indicating a healthy pipeline and continued client trust.
Financial Highlights
Profit after tax for the quarter was US$166 million, a 23.2% increase year-on-year. The company generated US$135 million of free cash flow during the quarter. Tech Mahindra reiterated its commitment to its full-year FY27 EBIT margin target of 15% and announced a 1:1 bonus share issue, marking its 40th anniversary milestone.
Source: BSE
