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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
₹13,995 Cr
verified against source
Revenue YoY
5.1%
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 Q2 FY26 revenue of INR 13,995 crore, up 5.1% YoY, with PAT of INR 1,194 crore (+28.2% YoY). EBIT margin expanded 108bps to 12.1%, marking the eighth consecutive quarter of improvement. Growth was broad-based across manufacturing, BFSI, and retail, while communications remained soft. Net new deal TCV reached $816 million, up 57% LTM, and the $20M+ client bucket surpassed $1 billion in revenue. Management highlighted steady progress toward the FY27 margin target of 15%, driven by fixed-price productivity and SG&A optimization. AI investments, including the TechMRI platform and participation in India's AI Mission, are positioning the company for future growth. However, macro uncertainty and a muted discretionary spending environment remain headwinds. The second half is expected to be stronger than the first, aided by deal conversions and operational rigor.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects improved performance in H2 driven by operational efficiencies and improved demand visibility, despite seasonal furloughs in Q3.
- Management reiterated commitment to reaching 15% EBIT margin by FY27, with continued margin expansion each quarter.
- Management aims to increase quarterly net new deal TCV closer to $1 billion, up from current $816 million, driven by a rich pipeline.
- Board recommended dividend of INR 15 per share; committed to returning at least 85% of free cash flow to shareholders.
Risks flagged
- Management noted that the macro environment remains slow, with no dramatic growth expected next year, which could impact revenue growth.
- Under 1% of global workforce on H1B visas; potential regulatory changes could increase costs or limit talent availability, though management considers it manageable.
- A semiconductor client significantly scaled down operations last quarter, impacting revenue; similar events could recur in the $20M+ client bucket.
- European telecom business faced localized challenges, causing a decline in the communications vertical; recovery expected but uncertain.
Key quotes
- We are not expecting next year to be the same as this year. We are expecting a higher growth for the industry and for ourselves next year.
- Our visa dependence in the U.S. is under 30%... we feel that this is a manageable problem.
- We are committed to that plan of increasing margins every quarter and getting towards that target.
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