Tech Mahindra’s Q3 FY26 Performance Analyzed

Key Points

• Net profit down 6.07% QoQ, up 14.12% YoY (vs Q3 FY25).
• Revenue up 2.85% QoQ, 8.34% YoY (vs Q2 FY26).
• Profit before tax (PBT) rose 37% QoQ, 40.1% YoY.
• EBIT up 11.3% QoQ, 40.1% YoY – strong operational growth.
• IT headcount reduced by 4,671 YoY, attrition at 12.3%.
• Strong cash position: Rs 7,666 crore.

Tech Mahindra reported a 6.07% decrease in its consolidated net profit, reaching Rs 1,122 crore for Q3 FY26. This happened alongside a 2.85% increase in overall sales to Rs 14,393.2 crore, when compared to the previous quarter (Q2 FY26). However, when looked at against the same period last year (Q3 FY25), the company’s net profit actually increased by 14.12%, and revenue rose by 8.34%.

The company’s profit before any unusual expenses (known as Profit Before Exceptional Items and Tax, or PBET) jumped significantly, increasing by 37% to Rs 1,777.5 crore in Q2 FY26. This was higher than the Rs 1,297.4 crore reported in Q2 FY26. A one-time expense related to changes in labor laws contributed Rs 272.4 crore to these figures.

The Earnings Before Interest and Tax (EBIT) was a strong Rs 1,892 crore in the quarter ending December 31, 2025. This represented an 11.3% increase compared to the previous quarter (QoQ) and a 40.1% rise compared to the same period last year (YoY). This highlights the company’s operational strength.

In terms of money, Tech Mahindra’s revenue was $1.610 billion (a 1.5% increase QoQ) and $211 million (a 10.0% QoQ and 32.8% YoY) in EBIT. The company’s operating margin was 13.1% – an improvement of 100 basis points (QoQ) and 290 basis points (YoY). This shows the company’s ability to manage costs and improve efficiency.

During this time, Tech Mahindra employed 76,194 people, a decrease of 4,671 compared to the previous year. The IT LTM (Last Twelve Months) attrition rate was 12.3%, slightly lower than the 12.8% seen in Q2 FY26. They held a substantial amount of cash: Rs 7,666 crore.

CEO Mohit Joshi emphasized the company’s strong deal wins, the highest in five years, driven by investments in sales, a customer-focused approach, and their growing AI offerings. CFO Rohit Anand highlighted continuous margin expansion, strong cash generation, and improved working capital management, placing the company on track to achieve its FY27 goals.

Additionally, Tech Mahindra invested an extra Rs 37.5 million in New Democratic Electoral Trust (NDET), increasing its ownership from 19.83% to 49.35%. This strengthened NDET’s status as a key associate of Tech Mahindra.

Tech Mahindra provides technology expertise and digital solutions to large companies worldwide. They cover a wide range of services, including consulting, IT support, software, business processes, engineering, networking, customer experiences, Artificial Intelligence, and cloud solutions.

The company’s share price jumped 3.50% to Rs 1,729.10 on the BSE, reaching a 52-week high of Rs 1,736.55.

“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

Tech Mahindra’s financial results demonstrate a clear path to sustainable growth and continued value for shareholders.

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