Tech Mahindra, a leading global provider of technology consulting and digital solutions, has reported a robust financial performance for the quarter ended December 31, 2025, marked by strong margin expansion, improved cash flows, and its highest deal wins in the past five years.
For the third quarter of FY26, the company recorded consolidated revenue of USD 1,610 million, reflecting growth of 1.5% quarter-on-quarter (QoQ) and 2.7% year-on-year (YoY) in reported terms. Earnings before interest and tax (EBIT) stood at USD 211 million, up 10.0% QoQ and 32.8% YoY, with EBIT margin improving to 13.1%, nearly 290 basis points higher YoY. Profit after tax (PAT) for the quarter reached USD 125 million, while free cash flow remained strong at USD 194 million.
In rupee terms, Tech Mahindra reported ₹14,393 crore in revenue, up 8.3% YoY, and ₹1,892 crore in EBIT, representing a significant 40.1% YoY increase. PAT stood at ₹1,122 crore, up 14.1% YoY, with diluted earnings per share at ₹12.64.
A key highlight of the quarter was new deal wins with a total contract value (TCV) of USD 1,096 million, representing 47% YoY growth and 34% QoQ growth, underlining the company’s improving deal-win momentum and strong client confidence.
Commenting on the results, Mohit Joshi, CEO and Managing Director, Tech Mahindra, said the company’s highest LTM deal wins in five years reflect sustained investments in sales, a solution-led go-to-market approach, and the growing relevance of its AI-driven offerings. “These efforts are laying a strong foundation for long-term value creation,” he said.
Rohit Anand, Chief Financial Officer, highlighted the company’s ninth consecutive quarter of margin expansion and continued strength in cash generation. He noted that improved working capital discipline has led to better cash flows and a meaningful reduction in days of sales outstanding (DSO), which stood at 90 days at the end of the quarter.
During the quarter, Tech Mahindra secured several strategic engagements across telecommunications, aerospace, healthcare, banking, and SaaS sectors, focusing on large-scale digital transformation, system integration, cloud migration, and AI-led modernization programs.
The company also strengthened its position in emerging technologies through partnerships with global leaders such as Google and AWS, advancements in generative AI and quantum computing, and collaborations with leading academic and research institutions in India, Europe, and the United States.
Recognised for its performance and sustainability leadership, Tech Mahindra received multiple global awards and analyst accolades during the period, including recognition in the S&P Global Dow Jones Sustainability Index and several “Leader” and “Star Performer” ratings from ISG, Everest Group, and HFS.
With disciplined execution, a strong deal pipeline, and AI-led transformation at the core of its strategy, Tech Mahindra said it remains confident of progressing steadily toward its FY27 goals, while continuing to deliver long-term value for clients, shareholders, and communities.
