Tech Mahindra posted 20.66% sequential rise in net profit for the fourth quarter of the fiscal at Rs 1,353.8 crore (Q3: Rs 1,122 crore), buoyed by healthy revenue growth and the absence of one-off expenses on account of new labour code provisions. by higher tax tech major announced on Wednesday. The net profit trailed Bloomberg estimates of Rs 1,511 crore.
Revenue for the quarter under consideration was up 4.74% sequentially at Rs 15, 076.1 crore (Q3: Rs 14,393 crore), beating Bloomberg estimates of Rs Rs 14,784 crore.
The firm also beat street estimates on earnings before interest, taxation, depreciation and amortisation (EBITDA) of 2,491 crore at Rs 2,565.3, and EBITDA was up 8.44% quarter on quarter. EBIT for the quarter was up 10.2% sequentially, and came in at Rs 2,084 crore.
“We are accelerating our transition to an AI-led organization, embedding AI across services and expanding our capabilities to enhance value delivery for our clients. This is reflected in our highest deal wins in recent years including consecutive quarters exceeding $ 1 billion. We remain focused on scaling with discipline and are on track to delivering our FY27 commitments Mohit Joshi, managing director and chief executive, Tech Mahindra, said.
Growth in revenues and deal wins, the company was confident of meeting its 15% margin target for FY27, as per the three-year plan rolled out in 2024, Joshi said. The company had multiple levers as it grows faster with a mix of services, improved revenues and a focus on larger clients, Joshi said. “AI-led transformation will unlock spending,” Joshi said. They would grow faster than the average growth of the large four peer companies, he added.
The company exited FY26 with a margin of 12.6%.
New deal wins TCV for the quarter stood at $1.07 billion, down marginally from $1.1 billion in the preceding quarter, and $798 million in Q4FY25.
“FY26 marked the end of the Stabilization Phase of our transformation journey, with margins expanding for the 10th consecutive quarter despite a challenging macro environment. In line with our disciplined capital allocation framework and commitment to our shareholders, we increased the dividend by over 13%, taking total dividends declared for the year to Rs 51 per share, our highest ever,” Rohit Anand, chief financial officer, Tech Mahindra said.
The company saw a dip in the number clients at 913 in Q4FY26 as compared to 928 in Q3FY26, and 925 in the fourth quarter of FY25. TechM added 1 $50 million client, 2$20 million clients and 1 $10 million client over last quarter. It however saw the number of $1 million clients decline by 9 sequentially and $5 million clients by 2.
Employee metrics
During the quarter, the firm’s headcount reduced 1.33% sequentially to reach 147, 623 as compared to 149,616 at end of December 2025, driven by reduction in all three buckets – BPS, IT and sales workforce, for a second consecutive quarter. On an annual basis, the company headcount reduced 0.74% compared to 148,731 in the fourth quarter of FY25, led mainly by decrease in IT staffing.
Tech Mahindra’s utilisation rate dipped sequentially to 86.1% versus 86.6% in the previous quarter while attrition reduced quarter on quarter at 12.1% (Q3FY26: 12.3%).
“There was a change in strategy regarding fresher hiring in FY26. We took a pause; the demand profile with AI is also changing. So, this year saw minimum fresher hiring,” Anand said on the company’s fresher hiring strategy. He did not put a number on the quantum of freshers hired in the fourth quarter or the full fiscal.
“As we get into the next year, we will resume some of that (campus hiring) going forward. But we have not clearly outlined the number. It won’t be as much as FY25 but will be better than what we did last year,” Anand added.
Industry-wise performance
Communications continued to be the largest vertical by revenue with a contribution of 33.4%, followed by manufacturing at 18.1%. BFSI accounted for 16.6% while technology and media accounted for 13.5% of the revenue.
BFSI grew 8% sequentially while retail and logistics declined 5.3%. Technology, Media and Entertainment grew 2.5% while manufacturing, and healthcare and life sciences declined 0.1% and 0.8% respectively.
Revenue by geography
The Americas accounted for 49.7% of TechM’s revenues while Europe accounted for 26%. The rest of the world contributed 24.3%.
The Americas showed a of 0.8% sequentially and a growth of 7.7% annually. Europe grew 2.7% sequentially 7.4% annually, while the rest of the world grew 2.7% quarter on quarter, but declined 2.7% year-on-year.
Revenue for the full fiscal was Rs 56,815 crore, up 7.2%, while EBIT was up 39.2% at Rs 7,152 crore. PAT for the year was Rs 4,811 crore, up 13.2%.