Pune: IT services company Tech Mahindra reported a strong financial performance for the first quarter of FY27, with consolidated net profit rising 28% year-on-year to ₹1,465 crore, supported by robust deal wins, expanding margins, and growing demand for AI-led digital transformation services.
The company also posted 17.7% year-on-year growth in consolidated revenue, which increased to ₹15,712 crore during the quarter ended June 30, 2026.
Revenue and Profit Continue Upward Momentum
Tech Mahindra’s financial performance reflected continued business momentum across key industry verticals.
Q1 FY27 Financial Highlights:
- Net Profit: ₹1,465 crore (up 28% YoY)
- Revenue: ₹15,712 crore (up 17.7% YoY)
- Sequential Revenue Growth: 4.2%
- EBIT Margin: 14.4%
- Margin Expansion: 330 basis points YoY and 60 basis points QoQ
The improved profitability was driven by operational efficiencies, strong client demand, and continued execution across major transformation projects.
New Deal Wins Cross $1 Billion Again
Tech Mahindra maintained its strong deal momentum by securing new business worth $1.08 billion during the quarter, representing a 33.3% year-on-year increase.
The company has now recorded three consecutive quarters with deal wins exceeding $1 billion.
Over the last twelve months, total deal wins reached $4.06 billion, marking a 37.5% increase compared to the previous year.
CEO Highlights Growth-Focused Transformation
Commenting on the results, Mohit Joshi, CEO and Managing Director of Tech Mahindra, said:
“YoY growth of 6.1% coupled with three consecutive quarters of deal wins exceeding $1 billion dollars underscores the resilience of our business and the growing relevance of our offerings. Equally encouraging is the continued deepening of client relationships, with our $50 million-plus client base up by seven and all verticals delivering growth YoY.”
Speaking during the post-results press conference, Joshi added:
“We had said that in the third year of the transformation that we would pivot strongly to growth and as the numbers today show, we have done just that.”
He noted that every business vertical recorded year-on-year growth during the quarter.
AI and BFSI Continue to Drive Growth
Tech Mahindra reported healthy client demand across several strategic areas, particularly within the Banking, Financial Services, and Insurance (BFSI) sector.
Key growth drivers included:
- Payments modernisation
- Wealth management platforms
- Regulatory compliance solutions
- AI-powered enterprise transformation
The company also witnessed strong momentum in:
- Aerospace
- Industrial manufacturing
- Process manufacturing
- Healthcare
According to the company, healthcare demand benefited from vendor consolidation and increased discretionary spending on AI-enabled transformation initiatives.
Investing in AI Capabilities
Tech Mahindra continued expanding its artificial intelligence portfolio during the quarter through investments in:
- TechM Helix AI platform
- Agentic AI solutions
- AI ecosystem partnerships
To strengthen its BFSI capabilities, the company also announced the acquisition of Canada-based Avant Techno Solutions, enhancing its expertise in payments modernisation and wealth management platforms.
The acquisition aligns with Tech Mahindra’s broader strategy of building AI-first digital transformation capabilities for global enterprises.
Workforce Update
At the end of the June quarter, Tech Mahindra’s workforce stood at 146,760 employees, reflecting a sequential decline of 863 employees.
The company’s last twelve-month IT attrition rate was reported at 11.8%, indicating relatively stable workforce trends amid ongoing investments in high-demand digital and AI skills.
Outlook
With sustained deal momentum, improving profitability, and increasing enterprise demand for AI-led transformation, Tech Mahindra enters the next phase of its transformation strategy with a stronger growth outlook.
The company continues to invest in emerging technologies, strategic acquisitions, and industry-specific digital solutions as enterprises accelerate cloud adoption, automation, and artificial intelligence initiatives across global markets.
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Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.