Tech Mahindra CEO Mohit Joshi reaffirmed the company’s commitment to achieving a 15% earnings before interest and taxes (EBIT) margin by FY27, stating that the “current progress is encouraging” despite ongoing macroeconomic uncertainties.

“Tech Mahindra is actively pursuing margin expansion through Project Fortis, which includes productivity enhancements; AI-enabled interventions across delivery and operations; operational discipline and integration of acquired portfolio companies; and improving project-level ratios and efficiency metrics,” he said while speaking during the Q1FY26 earnings call.

“These initiatives aim to systematically lift operating margins to 15% by FY27,” he said.

Last year, the IT major launched Project Fortius, which aims to cut employee costs and hire more freshers, to achieve a 15% operating margin by FY27. 

Joshi highlighted that the EBIT margin improved to 11.1% this quarter, up 260 basis points year-on-year (YoY), driven by operational discipline and productivity measures under Project Fortius. He added that continued progress across key cost and delivery levers will help sustain margin recovery in the coming quarters.

He said that ongoing margin recovery is tied closely to improvements in the U.S. business, operational efficiency, and continued discipline in cost management.

Speaking on the margin improvement, Rohit Anand, Chief Financial Officer, Tech Mahindra, said, “We have delivered seven consecutive quarters of margin expansion - a clear reflection of the discipline and focus across our organisation. Even in an uncertain environment, our Project Fortius program continues to generate meaningful results and drive operational improvements.”

On deal momentum, Joshi said that despite a mixed macro environment, the company sees a robust deal pipeline and continues to invest in tools and analytics to support consistent delivery. He acknowledged that while some delays occur in deal closures, the focus remains on execution at the company level rather than relying solely on deal wins.

“Our performance is steadily strengthening, reflecting disciplined execution and a focused strategy. Deal wins have increased by 44% on a last twelve months (LTM) basis, supported by broad-based momentum across verticals and geographies,” he said.

During this quarter, Tech Mahindra reported new deal wins worth $809 million, up 51% YoY.

For the first quarter ended June 30, 2025, Tech Mahindra posted a consolidated profit of ₹1,141 crore for the first quarter ended June 30, 2025, growing by 34% on a YoY basis. In dollar terms, the profit after tax (PAT) stood at $133 million, up 30.2% YoY.

Revenue, however, grew marginally by 2.7% YoY to ₹13,351 crore, Tech Mahindra said in an exchange filing. Dollar revenue inched up by 0.4% to $1,564 million compared to the same period last year.

On the operating front, EBIT stood at ₹1,477 crore, up 34.0% YoY. In dollar terms, EBIT was $172 million, up 30.2% YoY, while the margin improved by 260 basis points to 11.1%.

As of June 30, 2025, total headcount stood at 1,48,517, an increase of 897 on a YoY basis. IT attrition over the last twelve months was 12.6%.