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Tech Mahindra (TECHM) investor relations material
Tech Mahindra Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record quarterly deal bookings, including a $500M+ multi-year European telecom contract, the largest in company history, driven by investments in sales and AI-led offerings.
Revenue grew 2.7% year-over-year and 1.5% sequentially, with broad-based growth across communications, manufacturing, high-tech, retail, and healthcare.
Operating margin expanded by 290 basis points YoY to 13.1%, marking the ninth consecutive quarter of margin expansion and strong cash generation.
Strong client additions, including three new $50M clients, and significant growth in $20M+ client revenue.
AI and digital transformation remain core to strategy, with scaled enterprise adoption, new innovation partnerships, and major collaborations with Google and AWS.
Financial highlights
Q3 revenue: $1,610M, up 1.5% QoQ and 2.7% YoY (reported); 1.7% QoQ and 1.3% YoY (constant currency).
EBIT/operating profit: $211M, up 32.8% YoY; operating margin at 13.1%, up nearly 100 bps sequentially and 290 bps YoY.
Profit after tax margin (excluding exceptional items): 9.2%, up 180 bps YoY; PAT stood at $125M, up 8.3% YoY.
Free cash flow: $194M for the quarter; FCF to operational PAT at 131% YTD.
Exceptional item: $30M one-time provision due to new Wage Code notification.
Outlook and guidance
On track to achieve FY27 goals, targeting a 15% EBIT margin and above-peer growth, with large European telecom deal ramping up in FY27.
Deal pipeline remains strong, with focus on large strategic clients and AI-led transformation.
Manufacturing and retail expected to sustain growth; BFSI to recover as seasonal factors normalize.
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