Tech Mahindra reported a steady financial performance for the quarter ended December 31, 2025, supported by strong deal momentum, margin expansion, and improving cash flows. The IT services major posted revenue of $1,610 million, marking an increase of 1.5 percent quarter-on-quarter and 2.7 percent year-on-year.
Profitability and Margins Improve Further
Earnings before interest and tax (EBIT) stood at $211 million, reflecting a 10.0 percent sequential increase and a sharp 32.8 percent growth year-on-year. EBIT margin improved to 13.1 percent, expanding by around 100 basis points quarter-on-quarter and nearly 290 basis points compared to the same period last year.
Profit after tax (PAT) came in at $125 million, up 8.3 percent year-on-year, highlighting improved operational efficiency and disciplined cost management.
Strong Deal Wins and Client Metrics
Tech Mahindra recorded new deal wins worth $1,096 million during the quarter, significantly higher than $816 million in the previous quarter and $745 million a year ago. On a last twelve months basis, the company achieved its highest deal wins in the past five years.
The number of large clients also showed improvement. Clients contributing $10 million or more increased to 111, while those in the $50 million-plus category rose to 28, underlining deeper engagement with strategic customers.
Mohit Joshi, CEO and Managing Director of Tech Mahindra, said the strong deal momentum reflects sustained investments in sales, a solution-oriented go-to-market strategy, and the growing relevance of AI-led offerings in addressing client needs. He added that these efforts are building a solid foundation for long-term value creation.
Geography and Vertical Performance
From a geographic perspective, the Americas remained the largest market, contributing 50.6 percent of revenue, followed by Europe at 25.6 percent and the rest of the world at 23.9 percent.
Vertically, the communications segment continued to lead with a 33.1 percent share of revenue. Manufacturing contributed 18.3 percent, while BFSI accounted for 15.5 percent. Technology, media and entertainment represented 13.2 percent, retail, logistics and transport 8.7 percent, healthcare and life sciences 7.4 percent, and other segments 3.7 percent.
Workforce and Attrition Trends
Total headcount stood at 149,616, a reduction of 872 employees year-on-year. IT headcount declined to 76,194, while business process services headcount remained largely stable at 65,450. Sales and support staff totaled 7,972.
Last twelve months IT attrition improved to 12.3 percent, indicating better talent retention amid industry-wide stabilization.
Cash Flow and FY27 Outlook
Rohit Anand, Chief Financial Officer of Tech Mahindra, said the quarter marked the ninth consecutive period of margin expansion, alongside continued strength in cash generation. He highlighted improvements in working capital discipline and a meaningful reduction in days sales outstanding, driven by consistent execution. Anand added that the company remains on track to achieve its FY27 goals.
RAJANI BABURAJAN
