Tech Mahindra kicked off FY26 on a strong note, reporting a 33.95% rise in net profit to ₹1,140.6 crore in Q1, slightly below last quarter’s ₹1,167 crore but significantly ahead of expectations. While revenue growth remained tepid at ₹13,351 crore (up 2.7% YoY), sequential revenue dipped in line with a projected 0.8% decline in constant currency terms.
Despite these revenue pressures, disciplined execution under Project Fortius and large deal wins ensured margin expansion for the seventh consecutive quarter, reinforcing the company’s operating efficiency.
$809 Million in Deal Wins Boost Sentiment
Tech Mahindra reported deal wins worth $809 million, recovering from $798 million in the previous quarter and comfortably beating analyst estimates. The 44% YoY jump in TTM (trailing twelve months) deal wins highlights improving business traction amid a challenging macroeconomic environment.
AI Strategy Moves from Vision to Execution
CEO Mohit Joshi emphasised the firm’s aggressive AI push, announcing the deployment of over 200 enterprise-grade AI agents. These agents are part of a hybrid human-AI model designed to boost business outcomes. The initiative goes beyond tools—focusing on AI as an operational core, not just a layer.
Internally, 77,000 employees are now AI-trained, and Tech Mahindra recently hired Amol Phadke as Chief Transformation Officer to lead these efforts. The company also partnered with Agentic AI startup KogoAI to develop scalable, compliant enterprise AI frameworks.
Operational Discipline and Future Outlook
While attrition ticked up to 12.6%, overall headcount rose to 148,517. Joshi reaffirmed confidence in the AI roadmap, citing the need to move from pilot projects to real-world implementation. He stressed that most companies struggle to scale AI due to fragmented systems and unclear business goals—an opportunity Tech Mahindra aims to capitalise on.
By aligning AI, talent, and disciplined execution, Tech Mahindra positions itself as a serious contender in AI-led enterprise transformation.
