Synopsis: In the June quarter, the organization achieved 17.7% revenue growth to ₹15,712 crore and a 53.3% EBIT increase to ₹2,264 crore. Large deal wins exceeded $1 billion for three consecutive quarters, reflecting a shift towards AI-led engagements and improved operating efficiency, with an EBIT margin expansion of 330 basis points to 14.4%.
For the quarter under review, the company posted healthy top-line growth alongside a much sharper rise in profits, pointing to improving operating efficiency. Deal wins stayed above the billion-dollar mark for a third straight quarter, while the client base of large accounts continued to expand, reflecting a shift towards higher-value, longer-term engagements.
With a market capitalization of Rs. 150,552 crore, the shares of Tech Mahindra Limited were trading at Rs. 1,550 per share, with a 52-week range of Rs. 1,854 to Rs. 1,304, and they are trading at a P/E of approximately 28x.
Q1 FY27 Performance: Profit Growing Faster Than Revenue
Tech Mahindra’s consolidated revenue for the quarter ended June 30, 2026, came in at ₹15,712 crore, up 17.7% year-on-year and 4.2% sequentially. What stands out, though, is the pace at which profitability improved. EBIT rose 53.3% YoY to ₹2,264 crore, taking the EBIT margin to 14.4%, an expansion of roughly 330 basis points from a year ago. Profit after tax attributable to the owners of the company grew 28.4% YoY to ₹1,465.1 crore, with diluted EPS at ₹16.50
In dollar terms, revenue stood at USD 1,660 million, up 6.1% YoY, while EBIT margin improved by about 330 basis points YoY to 14.4%. Free cash flow for the quarter came in at USD 167 million.
The company’s new deal wins totalled USD 1,078 million, marking the third consecutive quarter of TCV above USD 1 billion. Management pointed out that this reflects a deliberate move away from smaller, transactional outsourcing contracts towards larger, multi-year transformation deals that tend to bring better revenue visibility and stronger margins over time.
Client metrics told a similar story. The number of clients contributing more than USD 50 million in annual revenue rose by seven year-on-year to 33, and every business vertical recorded growth during the quarter. Rather than chasing volume, the company appears to be deepening its wallet share with existing large clients.
On the AI front, the quarter saw the launch of Agentic Development & Modernization Services, along with continued investment in the company’s “Helix” framework covering AI platforms, industry use cases, talent, and commercial models built around agentic and outcome-based delivery. Partnerships with Microsoft, Google Cloud, Perplexity, Cisco, and UKG were also expanded during the period, and the company acquired an 85% stake in Alluri Technologies Inc. (known as Avant Techno Solutions), a Canada-based payments modernisation firm
Working capital metrics improved as well. Days Sales Outstanding came down to 84 days from 89 days in the previous quarter, and cash and cash equivalents stood at ₹9,695 crore at quarter-end. Total headcount was 146,760, down 863 sequentially, while LTM IT attrition eased to 11.8%.
Other Business Overview
Segment-wise, the IT business contributed ₹13,245 crore in revenue with segment results of ₹2,903 crore, while the BPS segment brought in ₹2,467 crore in revenue and ₹438 crore in results. Geographically, the Americas remained the largest market at 48.6% of revenue, followed by Europe at 27.5%. Manufacturing was the fastest-growing vertical, up 17.2% YoY, followed by BFSI at 8.1% YoY growth.
The auditors flagged their usual emphasis of matter relating to the erstwhile Satyam suspense account claims, but this had no bearing on the audit opinion, which remained unmodified.
Tech Mahindra vs LTM: Where Tech Mahindra Is Pulling Ahead
On the numbers that matter most this quarter, Tech Mahindra is outrunning LTM. Its EBIT margin expanded 330 basis points YoY, more than double LTM’s 120-basis-point gain, and its PAT grew 28.4% YoY against LTM’s 17.1%. Revenue growth in INR terms was neck and neck, with Tech Mahindra at 17.7% YoY and LTM at 18%. However, in Constant Currency terms, Tech Mahindra actually pulled ahead, posting 6.6% YoY growth compared to LTM’s 6.4%
The one number still in LTM’s favor is the absolute margin level: LTM’s EBIT margin of 15.5% and PAT margin of 12.7% remain ahead of Tech Mahindra’s 14.4% and 9.3%. But the direction of travel is what stands out. Tech Mahindra is closing that gap at a noticeably faster pace, and on the rate of improvement, it’s the one setting the pace this quarter.
Conclusion
Tech Mahindra’s Q1 FY27 numbers suggest its turnaround is starting to show up in the results, not just in management commentary. Margins expanded sharply, deal wins held above USD 1 billion for a third straight quarter, and the client mix kept skewing towards larger accounts. The company still trails peers like LTM on absolute profitability, and headcount continues to shrink. The real test now is whether this pace of improvement holds as deal wins convert into revenue over coming quarters.
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