Tech Mahindra Q3 FY26 profit surges 14% YoY; new deal wins cross $1 billion milestone
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Tech Mahindra on Friday announced strong financial performance for the third quarter ended December 31, 2025 (Q3 FY26). The company reported a 14.1% year-on-year (YoY) increase in consolidated net profit, reaching ₹1,122.0 crore, compared to ₹983.2 crore in the same period last year.
Revenue growth and operational excellence
The company’s revenue from operations rose by 8.3% YoY to ₹14,393 crore. In US Dollar terms, revenue stood at $1,610 million, representing a 2.7% growth YoY and a 1.5% increase sequentially.
The quarter was marked by improvement in operating performance. EBIT (earnings before interest and taxes) climbed 40.1% YoY to ₹1,892 crore, with the EBIT margin expanding to 13.1%. This represents a sequential expansion of approximately 100 basis points and a YoY increase of 290 basis points.
"This quarter reflects a well-rounded financial performance, marked by the ninth consecutive quarter of margin expansion and continued strength in cash generation," said Rohit Anand, CFO of Tech Mahindra. The company also reported a healthy free cash flow (FCF) of $194 million, representing 131% of its operational PAT.
Record deal wins
Tech Mahindra secured new deal wins with a total contract value (TCV) of $1,096 million, a 47% increase YoY. This included one of the largest deals in the company's history—a partnership with a leading European telecommunications provider aimed at driving AI-led operational efficiencies.
Mohit Joshi, CEO and Managing Director of Tech Mahindra, said that deal wins on a last-twelve-months (LTM) basis are the highest in five years. "The momentum is a testament to our sustained investments in sales and the growing relevance of our AI-led offerings in addressing client needs," Joshi said.
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Workforce and exceptional items
As of December 31, 2025, Tech Mahindra’s total headcount stood at 149,616. IT services attrition moderated to 12.3% on an LTM basis, while utilisation improved to 86.6%.
The company reported an exceptional item of ₹272.4 crore during the quarter earmarked to the impact of the "New Labour Codes" notified by the Government of India, specifically regarding employee benefit obligations.
The shares of Tech Mahindra ended 5.26% higher at ₹1,672 apiece on the national stock exchange today.