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Tech Mahindra Q3: Deal Wins Soar, Profit Dips
16 Jan
Summary
- Net profit declined 6% year-on-year to ₹1,122 crore.
- Revenue rose 2.8% year-on-year to ₹14,393 crore.
- Total contract value of new deal wins grew 47% year-on-year.
IT services firm Tech Mahindra announced its third-quarter financial results, revealing a net profit of ₹1,122 crore. This figure represents a 6% decrease compared to the same period last year, falling short of analyst predictions. Despite the profit dip, the company's revenue for the quarter stood at ₹14,393 crore, surpassing market expectations and showing a 2.8% year-on-year growth.
The company highlighted a substantial increase in new business acquisition, with total contract value for newly secured deals reaching $1,096 million. This marks an impressive 47.0% year-on-year surge and a 34.3% quarter-on-quarter rise, representing the highest deal wins in five years. Tech Mahindra also reported a continued trend of margin expansion, with operating margins improving to 13.1% from 12.1% a year prior.
CEO and Managing Director Mohit Joshi attributed the strong deal wins to sustained investments in sales and the growing relevance of AI-led offerings. CFO Rohit Anand emphasized the consistent margin expansion and strong cash generation, with the company remaining on track to meet its FY27 goals. Shares of Tech Mahindra saw a positive market response, closing up 5.17% on the BSE.
