IT services major Tech Mahindra reported a 14% year-on-year increase in consolidated net profit to ₹1,122 crore for the third quarter of FY26, driven by steady revenue growth, strong deal wins, and continued margin expansion.
The company had posted a net profit of ₹983.2 crore in Q3 FY25, according to its regulatory filing. On a quarter-on-quarter basis, profit declined 6.03% from ₹1,194 crore in Q2 FY26.
Revenue Sees Steady Growth
Tech Mahindra’s revenue from operations rose 8.34% YoY to ₹14,393 crore in Q3 FY26, compared with ₹13,285 crore in the same quarter last year. Sequentially, revenue increased 2.85% from ₹13,994 crore in Q2 FY26, reflecting stable demand across key verticals.
Deal Wins Hit Five Year High
Commenting on the performance, Mohit Joshi, CEO and Managing Director, said the company recorded its highest deal wins on a last twelve month (LTM) basis in the past five years, pointing to a sustained improvement in the deal win run rate.
He attributed the momentum to continued investments in sales, a solution-led go-to-market strategy, and the increasing relevance of AI-led offerings in addressing client requirements.
Margins Expand for Ninth Consecutive Quarter
Rohit Anand, Chief Financial Officer, said the quarter marked a well-rounded financial performance, highlighted by the ninth consecutive quarter of margin expansion and strong cash generation.
He added that tighter working capital discipline led to improved cash flows and a meaningful reduction in days sales outstanding (DSO), driven by consistent execution. The company remains on track to meet its FY27 financial goals, he said.
Stock Reaction
Shares of Tech Mahindra closed at ₹1,672 apiece on the NSE, up ₹83.50 or 5.26% on Friday, as investors reacted positively to the earnings performance and management commentary.
Outlook
With improving deal momentum, sustained margin expansion, and a sharper focus on AI-led services, Tech Mahindra appears positioned for stable growth amid a cautious global IT spending environment. Investors will closely track execution consistency and demand trends in the coming quarters.
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