With ₹133.51 billion revenue, 34% profit jump, margin gains, and $809 million in new deals across AI and telecom sectors, Tech Mahindra witnesses a solid Q1-FY26.
Tech Mahindra reported a 34% year-on-year (YoY) increase in earnings before interest and tax (EBIT), reaching ₹14.77 billion for the first quarter of FY2026, that ended 30 June 2025. Consolidated revenue rose 2.7% YoY to ₹133.51 billion, while profit after tax stood at ₹11.41 billion, also up 34%.
In dollar terms, the company’s revenue grew 0.4% YoY to $1.56 billion. EBIT margin improved by 260 basis points to 11.1%, and profit after tax reached $133 million. The company reported $809 million in total contract value (TCV) for new deals during the quarter, marking a 51% YoY increase. Free cash flow stood at $86 million.
“Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy,” said Mohit Joshi, CEO and Managing Director of Tech Mahindra. “Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies.”
Moreover, the quarter included several notable contract wins across industries and regions. These included agreements with a US-based consumer wireless operator, a UK manufacturer for shared services, a global fashion brand, and telecom and insurance firms in the Americas, Europe, and the Middle East.
Besides, Tech Mahindra’s headcount increased slightly to 148,517, while IT attrition for the last twelve months stood at 12.6%. Days of sales outstanding rose to 95 days, up by two days from the previous year. Cash and cash equivalents at quarter-end totalled ₹80.72 billion.
The company also announced new service offerings and partnerships in cloud security, artificial intelligence (AI), and enterprise software with firms including Cisco, Red Hat, ServiceNow, Nuix, and CrateDB.
In its Q1 report, the company also highlighted its recognition in sustainability, innovation, and industry-specific services, as well as a global upskilling award from TM Forum and continued inclusion in the FTSE4Good Index.
