IT firm Tech Mahindra reported a 14% rise in net profit on January 16, totaling ₹1,122 crore for the quarter that concluded on December 31, 2025, an increase from ₹983.2 crore during the same quarter last year. However, in comparison to the prior quarter, profits saw a decrease of 6.03% from ₹Rs 1,194 crore.
The firm’s revenue from operations climbed 8% to ₹14,393 crore in Q3FY26 as against ₹13,286 crore in the year-ago period. The revenue from operations rose by 2.8% from the prior quarter and by 8.3% in comparison to the same time last year.
The operating performance experienced a significant boost, with EBIT increasing by 40.1% compared to the previous year, reaching ₹1,892 crore, and the EBIT margin rose to 13.1%. Additionally, the company announced new contract wins totaling USD 1.1 billion during the quarter, marking a 47% rise from a year ago, which indicates a strengthening demand trend.
Key highlights
According to the exchange filing, dollar revenue increased by 1.5% to $1,610 million from $1,586 million, while revenue growth in constant currency was recorded at 1.7%.
Tech Mahindra generated free cash flow of $194 million in the third quarter. The total contract value of new deals secured during the quarter reached $1,096 million, marking a year-on-year growth of 47.0% and a quarter-on-quarter increase of 34.3%.
For the quarter, diluted earnings per share were reported at ₹12.64. The total workforce reached 149,616 at the end of the quarter, showing a decrease of 872 employees compared to the previous year.
LTM IT attrition was reported at 12.3%. Operational metrics indicated that the days sales outstanding were at 90 days. At the end of the quarter, cash and cash equivalents totaled ₹Rs 7,666 crore.
Rohit Anand, Chief Financial Officer, Tech Mahindra, said, that”This quarter reflects a well-rounded financial performance, marked by the ninth consecutive quarter of margin expansion and continued strength in cash generation.
A sustained focus on working capital discipline has led to improved cash flows and a meaningful improvement in DSO, driven by consistent execution. We remain on track in our progress toward our FY27 goals.”
Additionally, Mohit Joshi, the CEO and Managing Director of Tech Mahindra, noted that the company’s deal wins on a last twelve months (LTM) basis are the highest they have experienced in the past five years, indicating an enhanced deal-win rate over the last few quarters.
“The momentum is a testament to our sustained investments in sales, solution-oriented go-to-market approach and the growing relevance of our AI-led offerings in addressing client needs. Together, these efforts are laying a strong foundation for long-term value creation,” said Joshi.
Techincal Views
Tech Mahindra shares ended at ₹1,670.55, up by ₹82.05, or 5.17%, on the BSE.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the IT pack staged a strong comeback this week, with Tech Mahindra emerging as one of the top performers. The stock has witnessed a bullish price and volume breakout across multiple time frames, and considering the positive structure, outperformance is likely to continue in the near term.
“Traders may consider buying on dips, with the 1,600 zone—earlier a breakout level—now acting as a strong demand area, followed by a higher-bottom support around 1,550. On the upside, prices are expected to retest the all-time high of 1,756, with a potential extension towards 1,850 in the near term,” said Bhosale.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
