EBIT (Earnings Before Interest and Taxes) was reported at ₹1,891.6 crore, surpassing the poll estimate of ₹1,804 crore, with an operating margin of 13.1%, above the expected 12.7%. Dollar revenue for the quarter came in at $1,610 million, compared to the CNBC-TV18 estimate of $1,593 million.
On a year-over-year basis, net profit dipped by 6% to ₹1,122 crore, down from ₹1,194.5 crore. Revenue grew by 2.8% to ₹14,393 crore from ₹13,995 crore. EBIT saw an increase of 11.3% to ₹1,891.6 crore compared to ₹1,699 crore, while margins improved from 12.1% to 13.1% over the previous year.
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Dollar revenue increased by 1.5% to $1,610 million from $1,586 million, with constant currency revenue growth recorded at 1.7%, outpacing the CNBC-TV18 poll estimate of 0.60%.
In Q3, Tech Mahindra reported free cash flow of $194 million. New deal wins totaled a contract value of $1,096 million, marking a year-on-year growth of 47.0% and a quarter-on-quarter growth of 34.3%.
Diluted earnings per share for the quarter stood at ₹12.64. The total headcount at the end of the quarter was 149,616, reflecting a reduction of 872 employees year-on-year.
LTM IT attrition was noted at 12.3%. Operational metrics indicated days of sales outstanding at 90 days. Cash and cash equivalents at quarter-end amounted to ₹7,666 crore.
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Mohit Joshi, CEO and Managing Director of Tech Mahindra, stated, “Our deal wins on an LTM basis are the highest we’ve recorded in the last five years, demonstrating an enhanced deal-win run-rate over several quarters.
This momentum reflects our continued investments in sales, a solution-focused go-to-market strategy, and the increasing significance of our AI-driven offerings in meeting client demands. Collectively, these initiatives set a robust foundation for long-term value creation.”
Rohit Anand, Chief Financial Officer at Tech Mahindra, remarked, “This quarter showcases a balanced financial performance, highlighted by the ninth consecutive quarter of margin expansion and steady cash generation.
A rigorous focus on working capital discipline has led to improved cash flows and a significant enhancement in DSO, driven by consistent execution. We are on track to achieve our FY27 objectives.”
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Tech Mahindra Ltd shares closed at ₹1,670.55, an increase of ₹82.05 or 5.17%, on the BSE.
