TechM Q4 revenue rises 4.9% YoY to $1.6 billion

Tech Mahindra reported March-quarter revenue of $1.6 billion, up 0.9% sequentially and 4.9% year-on-year. In constant currency terms, revenue rose 0.6% sequentially and 2.4% year-on-year.

For FY26, revenue stood at $6.3 billion, growing 1.9% in dollar terms and 0.6% in constant currency, as macro uncertainty, supply chain disruptions and a pullback in discretionary spending weighed on demand. “Growth this quarter was led by manufacturing, with strong performance in retail & CPG and our Comviva product business. Deal momentum remains strong across sectors, especially telecom and manufacturing, with no meaningful change in deal tenures,” said CEO Mohit Joshi during the earnings call on Wednesday.

On AI, Joshi said the technology is increasingly enabling new deal wins and monetisation opportunities rather than acting purely as a deflationary force.

The company reported an EBIT margin of 13.8% for the March quarter, up 70 basis points sequentially and 330 basis points year-on-year. For the full year, EBIT margin improved to 12.6%, a 290-basis point expansion.

Tech Mahindra reiterated its confidence in achieving a 15% operating margin target, a sharp improvement from the 6.4% exit margin when its transformation plan began. “We are very focused on delivering the 15% margin. Once that goal is achieved, we will outline the next phase,” Joshi said.

Margin gains are being driven by portfolio reshaping, a shift to higher-value services, and operational efficiencies. CFO Rohit Anand said these gains have largely been organic, with the company open to smaller tuck-in acquisitions rather than large deals. “As we grow faster, that gives us operating leverage. We are also seeing a shift toward priority service lines like enterprise applications, consulting, and data,” he said.

Deal momentum remained strong across sectors, particularly telecom and manufacturing, while the company continued to expand in BFSI, healthcare and retail. “Our deal pipeline remains very strong across multiple sectors,” Joshi said, adding that deal tenures have not materially shortened despite industry concerns.

Growth in the quarter was led by manufacturing, with retail and CPG—especially in the Americas—posting strong double-digit gains. The company also highlighted rising traction in BFSI, particularly in payments, wealth management and insurance platforms.

On hiring, Anand said fresher intake was front-loaded in FY25 but slowed in FY26 due to shifting demand. “As we get into next year, we will resume hiring, but it will be calibrated—not at the levels of the first year, but higher than what we did last year,” he said.

Joshi added that AI-led productivity is reshaping workforce needs. “If we can deliver fixed-price projects more efficiently, it unlocks talent capacity that can be deployed elsewhere. We are moving toward ‘service tokens’—where clients pay for outcomes delivered by a mix of human and digital labour, not just effort.” Over time, pricing will increasingly incorporate AI-led components, Joshi said. Amid these changes, Tech Mahindra’s IT headcount declined by 5,232 during the January–March quarter.