Whalesbook
Financial Surge and Deal Momentum
Tech Mahindra posted impressive financial results for the quarter ending December 31, 2025. The company's Earnings Before Interest and Taxes (EBIT) soared by 40.1% year-on-year, reaching Rs 1,892 Crore. Revenue climbed 8.3% YoY to Rs 14,393 Crore, indicating sustained business expansion. Operating margins saw a significant boost, with EBIT margins widening by approximately 290 basis points to 13.1%.
Profit After Tax (PAT) stood at Rs 1,122 Crore. Operational PAT demonstrated even stronger growth, jumping 34.9% compared to the prior year, a testament to improved execution and cost efficiencies. These figures underscore Tech Mahindra's enhanced profitability and operational effectiveness during the period.
New Deal Wins Accelerate Growth
The quarter was marked by substantial new business acquisition, with Total Contract Value (TCV) for new deal wins reaching USD 1,096 million. This represents a substantial 47% increase year-on-year and a 34.3% rise from the preceding quarter. These wins highlight robust market demand for Tech Mahindra’s digital transformation and consulting services across diverse sectors and geographies.
Key contract wins included a major application modernisation project for a leading European telecommunications firm and a strategic partnership with a global aerospace manufacturer. In the United States, Tech Mahindra secured significant digital transformation and system integration projects from prominent healthcare and banking institutions, reinforcing its position in critical, high-value markets.
AI as a Core Growth Engine
Artificial Intelligence (AI) is central to Tech Mahindra's growth strategy, transitioning from pilot projects to scaled, multi-year client programs. The company is deepening its collaboration with Google to accelerate the adoption of Gemini Enterprise and has achieved AWS Generative AI Competency. Tech Mahindra is also a key player in India's AI Mission, developing localized Large Language Models (LLMs) like TechM Orion in Hindi and focusing on AI-driven educational tools.
Global collaborations are also expanding, including a Memorandum of Understanding with The University of Texas at Dallas to establish a new Makers Lab in the US. These initiatives position Tech Mahindra at the forefront of AI-driven innovation for its global clientele.
Sustainability and Future Technologies
Beyond AI, Tech Mahindra is actively pursuing growth in sustainability and emerging technologies. The launch of "i.GreenFinance" aims to transform sustainable lending for financial institutions worldwide. The company is also engaged in quantum computing and next-generation smart factory solutions through partnerships with entities like Strangeworks and DFKI.
Despite a slight reduction in total headcount to 149,616, operational health remains strong. IT attrition was reported at 12.3%, and the company maintained a healthy cash position of Rs 7,666 Crore. These results solidify Tech Mahindra's standing as a leader in digital resilience and innovation heading into 2026.