Tech Mahindra reported US$1.586 billion in revenue for Q2 FY26, marking a 1.6% sequential constant currency growth. The company’s EBIT margin reached 12.1%, driven by operational efficiency and cost optimization. Key wins include partnerships in the telecom sector and growth in manufacturing and BFSI. The company focuses on AI development, including a sovereign large language model.
Financial Performance
Tech Mahindra’s revenue for Q2 FY26 reached US$1.586 million, reflecting a 1.6% sequential constant currency growth. On a reported basis, revenue increased by 1.4% Q-o-Q but declined by 0.2% Y-o-Y. The company achieved an EBIT margin of 12.1%, demonstrating margin expansion driven by operational efficiency, disciplined execution, and cost optimization.
Vertical Performance
The Manufacturing vertical posted a 5.2% year-on-year growth, with Aero and Industrial segments showing good traction. Banking and Financial Services (BFSI) saw growth of 6.2% year-on-year. Retail, Transport, and Logistics delivered a 7.2% year-on-year growth. However, the Communications vertical experienced a decline of 2.2% year-on-year.
Client Wins and AI Initiatives
Tech Mahindra closed new total deal revenue of US$816 million this quarter, a 57% increase on a last 12 months basis. They also partnered with a leading US-based telecom operator to enhance network testing and certification automation. Tech Mahindra is partnering to develop a sovereign large language model with 1 trillion parameters, aligning with India’s AI mission. The company launched TechM Orion, its next-generation agentic AI platform.
Strategic Outlook
The company is focused on sustaining operating rigor, strengthening cash flow generation, and driving profitable growth. It aims to achieve its FY27 goals through operational efficiency, disciplined execution, and value-driven strategies. The company has won ‘5 Gold Medals at the Brandon Hall HCM Excellence Awards 2025’, recognizing achievements in talent management and diversity.
Source: BSE
