Tech Mahindra reports $1.1 billion in Q3 order book; highest quarterly wins in 5 years

Mohit Joshi, CEO, Tech Mahindra

• Tech Mahindra reported $1.1 billion Q3 order book, highest in five years
• Q3 net profit up 14.1% YoY to Rs 1,122 crore; revenue rose 8.3% YoY
• Europe grew 11.2 percent YoY, driven by a large communications deal

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IT services giant Tech Mahindra reported orders worth $1.1 billion in Q3, its highest quarterly wins in five years, driven by a large deal win in the communications vertical from a European telco.

Mohit Joshi, CEO and MD, Tech Mahindra said that the overall deal momentum was broad-based across communications, manufacturing, high-tech, retail, and healthcare.

“We have recorded our highest quaterly deal bookings in the last five years, our highest deal wins on an LTM basis in the last five years, and our largest deal win in Europe in the communications industry. This really underscores the strength of our brand relationships, the relevance of our capabilities, and our ability to deliver long-term value at scale,” Joshi said at the company’s Q3 earnings conference in Mumbai on January 16.

Communications segment, which accounts for over 33 per cent of the company’s revenue, grew 4.7 per cent YoY, manufacturing grew 11.7 per cent YoY; retail, logistics and transport grew 11.7 per cent YoY. Meanwhile, there was a decline in BFSI vertical of around 0.8 per cent YoY and Technology, media and entertainment of about 4.6 per cent YoY decline.

Among geographies, Europe has entered the growth phase growing 11.2 per cent YoY, largely driven by the large deal in communications space. Americas, that contributes over 50 per cent of Tech Mahindra’s revenue grew 2.1 per cent YoY.

Tech Mahindra continues to be on-track to achieve its FY27 business turnaround targets, and expects to outpace its Tier-I peers in growth momentum going forward, the management said.

“To reiterate, we expect to grow higher than the peer average by the end of FY27, while progressing towards the 15 per cent EBIT margin. This strong quarter reinforces our confidence that we are on the right path and building sustained momentum towards our long-term aspirations,” Joshi said.

Tech Mahindra Q3 Results

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 2,724 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.