Tech Mahindra Q3 results: Profit up 14% YoY to Rs 1,122 crore, revenue up 8%

IT giant Tech Mahindra on Friday reported that December consolidated profit after tax rose 14.1% year-on-year (year-on-year) to Rs 1,122 crore, while revenue rose 8.3% year-on-year to Rs 14,393 crore.In USD terms, revenues were 1.7% sequentially at constant exchange rates, while EBIT margin increased 100 basis points on a sequential basis to 13.1%.

New deal secured TCV rose 47% year-on-year and 34.3% quarter-on-quarter to $1,096 million, the company said in a filing with the regulator.Tech Mahindra’s CEO and MD Mohit Joshi said the number of deals on an LTM basis is the highest the company has achieved in the last five years, reflecting an improved deal-win-run rate over the past few quarters.

“The momentum is a testament to our continued investments in sales, solutions-oriented go-to-market approach and the growing relevance of our AI-driven offerings in meeting customer needs. Together, these efforts lay a strong foundation for long-term value creation,” he said.

At the end of the December quarter, Tech Mahindra’s total workforce fell by 872 people to 149,616. LTM churn was 12.3%.

During the quarter, the IT company said it won 28 customer deals worth at least $50 million, while the figure for $20 million+ deals was 64. Company CFO Rohit Anand said this quarter reflects well-rounded financial performance marked by the ninth consecutive quarter of margin expansion and continued strength in cash generation.

“A sustained focus on working capital discipline has led to improved cash flows and meaningful improvement in DSO, driven by consistent execution. We remain on track in our progress towards our FY27 targets,” he said.

The company’s operating PAT margin was 9.2%, up 70 basis points quarter-over-quarter and 180 basis points year-over-year. The ROCE was 26.9%.

Ahead of the announcement of third quarter earnings results after trading hours on Friday, Tech Mahindra shares ended 5.2% higher at Rs 1,670.55 on BSE.