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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹13,351 Cr
verified against source
Revenue YoY
2.7%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Tech Mahindra reported Q1 FY26 revenue of INR 13,351 crore, up 2.7% YoY, with PAT of INR 1,141 crore, up 30% YoY. EBIT margin expanded 60 bps QoQ to 11.1%, marking the seventh consecutive quarter of margin expansion. Growth was driven by Communications, BFSI, and Retail verticals, while Manufacturing and Hi-Tech declined. Large deal TCV stood at $809 million, up 44% YoY on an LTM basis. Management expects revenue momentum to improve from Q2 as deal wins convert, but flagged ongoing uncertainty in Auto and Hi-Tech due to tariffs and client-specific cuts. The FY27 margin target of 15% remains intact, though growth assumptions may be revisited if macro worsens. Key risk: sustained weakness in Manufacturing and Hi-Tech could delay revenue recovery.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects FY26 revenue growth to exceed FY25 levels, driven by deal conversions and stabilization in key verticals.
- Despite macro uncertainty, the company reaffirms its FY27 EBIT margin target of 15%, contingent on growth assumptions.
- Large deal wins from previous quarters are expected to start contributing to revenue from Q2 onwards.
- CFO guided that the effective tax rate for FY26 will be around 27%, normalizing from a one-time refund in Q4.
Risks flagged
- Tariff uncertainty and client spending cuts continue to pressure the Manufacturing vertical, which declined 4% YoY.
- A key semiconductor client implemented sharp budget cuts and workforce reductions, causing a 3.3% YoY decline in Hi-Tech.
- Despite strong deal wins, revenue momentum has lagged; management's expectation of improvement from Q2 may be delayed if macro worsens.
- CFO acknowledged that the FY27 margin target of 15% assumes a certain growth trajectory; if growth disappoints, margins may be revisited.
Key quotes
- This marks our seventh consecutive quarter of margin expansion. This is a significant milestone and speaks of the rigor of our operating model and our continued focus on cost efficiency and the quality of our revenue mix.
- Our value lies in helping clients transition from proof of concept to production, from the sandbox to production systems.
- If the growth situation turns out worse than that based on the macro, then, of course, there will be a relook at that plan.
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