Tech Mahindra reported a strong performance for the first quarter of FY2026–27, with consolidated net profit rising 28.5% year-on-year to ₹1,465 crore, while revenue increased 17.7% to ₹15,712 crore, driven by robust growth in its manufacturing business and favorable currency movements. The company also crossed the $1 billion milestone in quarterly new deal wins, reporting net new order bookings of $1.08 billion, up sharply from $809 million a year earlier.
The results underscore Tech Mahindra’s continued turnaround under CEO Mohit Joshi, supported by large enterprise deals, operational improvements, and expanding demand for AI, cloud, and digital transformation services. However, while revenue exceeded market expectations, profit came in slightly below analyst estimates due to cost pressures.
Tech Mahindra Delivers Strong Q1 Performance
The company posted healthy growth across key financial metrics.
| Key Highlights | Details |
|---|---|
| Net profit | ₹1,465 crore |
| YoY profit growth | 28.5% |
| Revenue | ₹15,712 crore |
| YoY revenue growth | 17.7% |
| New deal wins | $1.08 billion |
Revenue growth was aided by strong client spending and a weaker rupee, which boosted overseas earnings.
New Deal Wins Cross $1 Billion
Tech Mahindra secured strong order bookings during the quarter.
Key highlights include:
- Net new deal wins reached $1.08 billion.
- Order bookings increased from $809 million in the year-ago quarter.
- Continued momentum in enterprise digital transformation.
- Strong demand for AI, cloud, and automation projects.
- New strategic partnerships announced during the quarter.
Crossing the $1 billion mark reflects improving client confidence and a strengthening deal pipeline.
Manufacturing Business Drives Growth
| Business Segment | Performance |
|---|---|
| Manufacturing | 17.2% YoY revenue growth |
| Communications | 1.3% YoY revenue growth |
Manufacturing emerged as the company’s fastest-growing major vertical, benefiting from increased digital engineering and Industry 4.0 spending. The communications business also returned to growth, albeit at a slower pace.
Strategic Partnerships
During the quarter, Tech Mahindra expanded its ecosystem through collaborations with:
- Telefónica Germany.
- Microsoft.
- Robotics platform Viam.
These partnerships are expected to strengthen the company’s capabilities in AI, cloud services, automation, and next-generation enterprise solutions.
Key Growth Drivers
Several factors contributed to the company’s performance.
These include:
- Strong manufacturing sector demand.
- Growing AI and cloud adoption.
- Increased enterprise technology spending.
- Large deal conversions.
- Favorable foreign exchange movements.
The depreciation of the Indian rupee also supported reported revenue because a significant portion of Tech Mahindra’s business comes from overseas markets.
Challenges Ahead
Despite the positive quarter, the company continues to monitor:
- Margin pressures.
- Global macroeconomic uncertainty.
- Slower spending in some telecom markets.
- Client decision-making cycles.
- Competitive pricing in IT services.
Management indicated that execution of recently won deals will remain a key focus over the coming quarters.
Outlook
Tech Mahindra’s first-quarter performance indicates that its transformation strategy continues to gain traction. Strong double-digit revenue growth, a sharp increase in new deal wins, and improved momentum in the manufacturing segment point to healthy demand for digital engineering, AI, and cloud services. Crossing $1 billion in quarterly deal bookings also provides greater revenue visibility for future quarters.
Looking ahead, investors will closely watch how quickly these large contracts translate into revenue and whether the company can sustain margin improvements amid continued investments in AI and digital capabilities. Continued enterprise technology spending and successful execution of its growing order book will be critical to maintaining growth momentum.
What It Means for India’s IT Sector
Tech Mahindra’s results reinforce the resilience of India’s IT services industry despite global economic uncertainties. Strong demand for AI, cloud migration, and digital transformation continues to support deal activity, particularly in manufacturing and enterprise technology.
For the broader sector, the quarter suggests that companies with diversified industry exposure and strong AI capabilities remain well-positioned to benefit from the next wave of enterprise technology investments, even as telecom spending remains relatively subdued.
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