Tech Mahindra Reports Strong Q3 Earnings, Profit Climbs 14%
Tech Mahindra posted a significant 14.1% jump in consolidated profit for the third quarter of FY26, reaching ₹1,122 crore. This marks a substantial increase from the ₹983 crore profit reported in the same quarter last fiscal year.
Revenue Growth and Margin Expansion
The IT services giant saw its consolidated revenue from operations climb 8.3% year-over-year to ₹14,392 crore in Q3 FY26. The company's operational efficiency was highlighted by a 40% surge in EBIT, which reached ₹1,892 crore. Crucially, its EBIT margin expanded by 290 basis points to 13.1% for the quarter.
This marks the ninth consecutive quarter of margin expansion for Tech Mahindra, reflecting a sustained focus on operational excellence. The company attributes these gains to strong cash generation and disciplined working capital management, which has led to improved cash flows and a reduction in Days Sales Outstanding (DSO).
"This quarter reflects a well-rounded financial performance, marked by ninth consecutive quarter of margin expansion and continued strength in cash generation," stated Rohit Anand, Chief Financial Officer at Tech Mahindra. "A sustained focus on working capital discipline has led to improved cash flows and a meaningful improvement in DSO, driven by consistent execution."