AI Deals Drive Tech Mahindra Q3 Results, Profit Climbs 14%

Tech Mahindra reported a strong December quarter, with consolidated net profit rising 14.1% year-on-year to ₹1,122 crore. Sharp margin expansion and improved operating performance added to the sharp rise in profits. 

Revenue from operations increased 8.3% to ₹14,393 crore in Q3 FY26, compared with ₹13,286 crore in the same quarter last year. It indicated steady growth despite a cautious demand environment.

Operating metrics showed a sharper improvement. Earnings before interest and taxes (EBIT) jumped 40.1% year-on-year to ₹1,892 crore, while EBIT margin expanded to 13.1₹, reflecting better execution and cost discipline during the quarter.

Deal momentum also remained strong. The company reported new deal wins worth $1.1 billion in Q3, up 47% from a year earlier. It points to improving demand traction and a healthier deal pipeline going into the next quarter.

“Our deal wins on an LTM basis are the highest we have achieved in the past five years, reflecting an improved deal-win run-rate over the past several quarters,” Mohit Joshi, CEO and managing director, Tech Mahindra, said. 

Meanwhile, Rohit Anand, CFO, Tech Mahindra, said the company continued to make steady progress on profitability and cash generation. He said the quarter reflects a strong financial performance, with nine consecutive quarters of margin growth and robust cash flow. “The company remains on track to achieve its FY27 goals.”

The quarter also witnessed AI emerge as a central growth driver. Tech Mahindra partnered with Google to accelerate enterprise adoption of Gemini Enterprise using Gemini 2.5 multimodal models. It also achieved the AWS Generative AI Competency, underlining its capabilities in deploying generative AI at scale. 

The company said clients are increasingly moving from pilots to multi-year AI programs embedded into core operating models.

Employee headcount stood at 1,49,616 at the end of the quarter, down 872 year-on-year. Over the last twelve months, IT attrition was 12.3%. 

Overall, the results point to a broader recovery, with stronger deal flow, steady revenue growth and sustained margin expansion. It makes Tech Mahindra stand out among its peers including HCLTech, TCS, Infosys, and Wipro, for whom the profit declined sharply due to the labour code changes.