Tech Mahindra Ltd.Strong Growth Momentum with Margin Discipline

Tech Mahindra delivered its strongest quarterly performance in the transformation journey with revenue reaching $1,660 million, growing 6.6% year-on-year in constant currency and 2.6% sequentially.

The company achieved its 11th consecutive quarter of margin expansion, with operating margin reaching 14.4%, up 330 basis points year-on-year and 60 basis points quarter-on-quarter. All verticals delivered year-on-year growth for the first time, led by Manufacturing at 17.2% and BFSI at 8.1%. Management secured $1,078 million in total contract value deal wins, marking the third consecutive billion-dollar quarter and 33.3% year-on-year growth.

Free cash flow surged 94% to $167 million, while return on capital employed improved to 28.3%. The company reaffirmed its FY27 guidance of 15% operating margin with Q4 exit rate expected above 15% and revenue growth exceeding peer average. Management highlighted successful AI transition from pilots to production with 350 deployable agents and deepening client relationships evidenced by seven new $50 million-plus clients. Strategic focus remains on profitable growth and operational discipline.