Techm vs Time Technoplast Q3 FY26

Tech Mahindra delivered a strong Q3 FY26 with revenue of INR 14,393 crore, up 8.3% YoY, and operating margin expanding 290 bps YoY to 13.1%. Growth was broad-based across comms, manufacturing, retail, and healthcare, with Europe leading geographically at 11.2% YoY. Deal bookings hit a five-year high at $1.096 billion, including a $500M+ European telco win. Management reiterated its FY27 target of growing above peer average and reaching 15% EBIT margin. Key risks include BFSI volatility from furloughs and productivity pass-through, and potential margin headwinds from wage hikes under the new labor code.

Guidance read

FY27 revenue growth above peer average: Management expects to grow higher than the peer average by the end of FY27, supported by strong deal pipeline and large client momentum. FY27 EBIT margin target of 15%: Company remains on track to achieve 15% EBIT margin by FY27, driven by continued operational improvements and gross margin expansion. Large deal ramp in H1 FY27: The $500M+ European telco deal will start ramping in the first half of FY27, contributing to revenue growth.

Risk read

Key risks include BFSI volatility from furloughs and productivity pass-through — BFSI revenue declined 0.8% YoY due to higher-than-normal furloughs and annual productivity gains in a large contract, which may persist.; Wage hike impact on margins — Wage hike timing and quantum are undecided due to new labor code implications; could pressure margins when implemented.; Seasonal normalization in European auto — Manufacturing growth was partly boosted by one-time deliveries in European auto, which will normalize next quarter, creating a headwind..

Promise ledger

Of 3 tracked promises, management 0 met, 1 close, 2 missed.

TI

Time Technoplast

Q3 FY26 · Information Technology

Time Technoplast delivered a solid Q3 FY26 with revenue of ₹1,567 crore (+13% YoY) and PAT of ₹126 crore (+25% YoY), driven by 15% volume growth and a rising share of value-added products (30% of sales vs 27% last year). The composite segment grew 23%, supported by a healthy order book of ₹165 crore for Type-4 cylinders. Management reiterated a 15% revenue growth trajectory and guided for ROCE improvement to 20% in FY26 (9M: 18.6%). Key margin drivers include automation (₹75 crore capex), solar power savings (~₹10 crore annualized from FY27), and debt reduction to near-zero in 6 months, cutting finance costs from ~₹90 crore to ₹25-30 crore. Risks include potential raw material volatility and slower-than-expected ramp-up of new composite capacity.

Guidance read

ROCE target of 20% for FY26: Management targets 20% ROCE for the full year, up from 18.6% in 9M, driven by margin expansion and debt reduction. Debt-free in next 6 months: Total debt reduced to ₹266 crore; management expects to become debt-free within 6 months, cutting finance costs to ₹25-30 crore annually. 15% revenue growth trajectory for next 3 years: Company projects consolidated revenue growth above 15% for the next 2-3 years, driven by packaging (11-13%) and composite (25-30%) segments. Solar power savings of ₹10 crore from FY27: Gujarat solar power benefit started in February; annual savings of ~₹10 crore expected from next fiscal, with investment payback in one year.

Risk read

Key risks include Raw material price volatility — Polymer prices have declined, but any reversal could pressure margins. Management noted lower raw material costs impacted revenue growth vs volume.; Delays in new composite capacity ramp-up — The new composite plant in Daman is commissioning in March 2026; any delay in commercialization could affect FY27 revenue targets.; Inorganic acquisition integration risk — The proposed acquisition of Vibrant Packaging (₹250 crore revenue) is under due diligence; integration challenges or deal failure could impact growth plans..

Promise ledger

Scorecard data is being built as historical quarters are processed.