Tech Mahindra Margin Trend — Quarter by Quarter

Tech Mahindra's EBITDA margin moved from 10.0% in Q1 FY24 to 14.0% in Q1 FY26 across 3 quarters. Management commentary below explains the cost and pricing drivers mentioned on calls.

EBITDA Margin by Quarter

Quarter	EBITDA Margin (%)	YoY Change
Q1 FY26	14.0%	—
Q1 FY25	12.0%	—
Q1 FY24	10.0%	—

What management said about ebitda margin

Q3 FY26 · 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.

Q2 FY26 · EBIT margin target of 15% by FY27 remains intact

Management reiterated commitment to reaching 15% EBIT margin by FY27, with continued margin expansion each quarter.

Q1 FY26 · FY27 margin target of 15% remains intact

Despite macro uncertainty, the company reaffirms its FY27 EBIT margin target of 15%, contingent on growth assumptions.

Q4 FY25 · FY27 EBIT margin target of 15%

Management reiterated commitment to 15% EBIT margin by FY27, with linear improvement expected through Project Fortius and portfolio mix.

Q4 FY25 · Continued investment in service lines and talent

Planned investments in service line capabilities, ecosystem, and talent, including consulting and AI, with ~1% margin impact from wage hikes and investments.

Q3 FY25 · FY27 EBIT margin target of 15%

Management reiterated commitment to achieving 15% EBIT margin by FY27 through Project Fortius, pricing optimization, and productivity gains.

Q3 FY25 · Wage hike impact of 1-1.5% in Q4

Wage hikes effective Q4 FY25 will impact margins by 1-1.5%, but operating levers are expected to partially offset.

Q2 FY25 · FY27 margin target remains unchanged

Management reiterated commitment to significant and predictable margin expansion by FY27, driven by Project Fortius and operational efficiencies.

Q2 FY25 · Subcon cost reduction to single-digit percentage of revenue

Management expects to reduce subcontractor costs as a percentage of revenue to single digits over time, supporting margin expansion.

Q2 FY25 · Second-half investments slightly heavier than first half

Investments under Project Fortius (1.5% of margins) will be slightly more in H2 vs H1, but not materially different.

Q1 FY25 · Margin improvement levers sufficient even in flat demand

Management stated they have enough internal levers to improve margins even without revenue growth, prioritizing margin over revenue.

Q4 FY24 · FY27 EBIT margin target of 15%+

Management targets exceeding 15% EBIT margins by FY27 through Project Fortius and operational improvements.