Tech Mahindra Q3 results: IT firm's net profit rises 14% on-year to Rs 1,122 crore

Tech Mahindra

Tech Mahindra on January 16 reported a 14.1 percent year-on-year rise in consolidated net profit at Rs 1,122 crore for the quarter ended December 31, 2025, aided by strong margin expansion.

Revenue from operations rose 8.3 percent to Rs 14,393 crore in Q3 FY26, compared with Rs 13,286 crore a year ago.

Operating performance improved sharply, with EBIT climbing 40.1 percent year-on-year to Rs 1,892 crore, while the EBIT margin expanded to 13.1 percent.

On a sequential basis, net profit declined by 6.07 per cent, hit by Rs 272.4 crore one-time exceptional cost due to the implementation of new labour code. The adjustments for labour codes include an increase in gratuity liability arising out of past service cost and an increase in leave liability.

The Pune-headquartered IT giant has missed Street estimates on the count of net profit and revenue, but beat EBIT margin estimates.

As per the CNBC-TV18 Poll estimates, the company was expected to report a net profit of Rs 1,385 crore for Q3FY26, revenue of Rs 14,209 crore. EBIT margin was estimated at 12.7 per cent for Q3FY26.

The company also reported new deal wins worth $1.1 billion during the quarter, up 47 percent from a year earlier, reflecting improving demand traction.

Mohit Joshi, CEO and Managing Director, Tech Mahindra, said, “Our deal wins on an LTM basis are the highest we have achieved in the past five years, reflecting an improved deal-win run-rate over the past several quarters. The momentum is a testament to our sustained investments in sales, solution-oriented go-to-market approach and the growing relevance of our AI-led offerings in addressing client needs.”

Rohit Anand, Chief Financial Officer, Tech Mahindra, added, “This quarter reflects a well-rounded financial performance, marked by the ninth consecutive quarter of margin expansion and continued strength in cash generation... We remain on track in our progress toward our FY27 goals.”