TECHM - Tech Mahindra
📢 Recent Corporate Announcements
Tech Mahindra has approved the allotment of 112,907 equity shares of ₹5 each following the exercise of stock options by employees. The allotment consists of 54,534 shares under the ESOP 2014 plan and 58,373 shares under the ESOP 2018 scheme. This routine corporate action increases the total issued share capital to 97,99,54,159 shares. The exercise price for these shares was at par value, and they will rank equally with existing equity shares.
- Allotment of 112,907 equity shares of ₹5 each fully paid-up
- 54,534 shares issued under ESOP 2014 and 58,373 shares under ESOP 2018
- Total issued share capital increased to ₹4,89,97,70,795
- Exercise price for the allotment was ₹5 per share with no premium
Tech Mahindra's subsidiary has entered an agreement to acquire 85% of Canada-based Alluri Technologies Inc. (Avant) for an initial consideration of CAD 28 million (approx. ₹194 crore). Avant is a specialized IT firm focusing on payments modernization and wealth platforms, reporting a CY25 turnover of CAD 58.64 million (₹406.96 crore). The acquisition will be executed in two tranches, with the remaining 15% stake to be acquired by June 2029 based on a predetermined pricing formula. This strategic move is designed to deepen Tech Mahindra's expertise in the BFSI vertical and expand its North American presence.
- Acquiring 85% stake in Alluri Technologies Inc. for CAD 28 million in cash, with the balance 15% by June 2029.
- Target company turnover grew significantly from CAD 31.18 million in CY23 to CAD 58.64 million in CY25.
- Avant specializes in high-demand areas like ISO 20022 migration, real-time rail capabilities, and wealth management platforms.
- The acquisition adds over 240 specialized employees and contractors to Tech Mahindra's BFSI workforce.
- First closing of the transaction is expected to be completed by July 31, 2026.
Tech Mahindra reported a strong performance for FY26, with full-year revenue reaching $6.385 billion, a 1.9% increase on a reported basis. Operating profit grew significantly by 31.4% to $797 million, driven by a 290 basis point expansion in margins to 12.6%. The company achieved its highest-ever deal wins in recent years, totaling $3.79 billion, representing a 42% year-on-year growth. Management highlighted a successful pivot toward AI-led services and strategic partnerships with NVIDIA and Microsoft as key drivers for the FY27 transformation plan.
- FY26 operating profit rose 31.4% YoY to $797 million with margins expanding to 12.6%.
- Total deal wins for the fiscal year reached $3.79 billion, a 42% increase compared to the previous year.
- Retail, Travel, and Logistics emerged as the fastest-growing vertical with 7.3% YoY growth.
- The number of $50 million-plus clients increased by 4 to a total of 29 during the year.
- Q4 FY26 revenue stood at $1.625 billion, up 4.9% YoY and 2.4% in constant currency.
Tech Mahindra's Board has recommended a final dividend of ₹36 per equity share for FY 2025-26, bringing the total annual dividend to ₹51 per share (1020% of face value). The company reported audited financial results for the full year ending March 31, 2026, with an unmodified audit opinion from BSR & Co. LLP. The record date for the final dividend is set for July 3, 2026, with payment expected by August 14, 2026. The auditor's report included an emphasis of matter regarding a long-standing legal claim of ₹12,304 million related to the Satyam merger, which management believes is not payable.
- Recommended a final dividend of ₹36 per share (720%) in addition to the ₹15 interim dividend already paid.
- Total dividend for FY 2025-26 stands at ₹51 per share on a face value of ₹5 each.
- Record date for dividend entitlement is July 3, 2026, with the AGM scheduled for July 17, 2026.
- Statutory auditors issued an unmodified opinion on both standalone and consolidated financial statements.
- Maintained a suspense account for ₹12,304 million in claims related to the erstwhile Satyam Computer Services merger.
Tech Mahindra has concluded its quarterly earnings meeting for the fourth quarter and financial year ended March 31, 2026. The company has made the video recording and the investor presentation, which includes the strategic roadmap for FY26, available to the public. The meeting was held on April 22, 2026, between 5:15 p.m. and 7:00 p.m. IST with various institutional investors and analysts. No unpublished price sensitive information was shared during the session, ensuring regulatory compliance.
- Earnings call for Q4 and FY26 concluded on April 22, 2026, lasting 1 hour and 45 minutes.
- Investor presentation includes a specific update on the strategic roadmap for FY26.
- Video recordings of the analyst meet have been uploaded to the company's official website for transparency.
- The meeting followed the official board meeting and disclosure of audited financial results for the year ended March 31, 2026.
Tech Mahindra reported a robust financial performance for FY26, with consolidated revenue growing 7.2% YoY to ₹56,815 crores and EBIT surging 39.2% to ₹7,152 crores. The company achieved its highest-ever deal wins of $3,794 million, representing a 41.6% YoY increase, signaling strong demand for its AI-led services. Profitability improved significantly as EBIT margins expanded by 290 bps YoY to 12.6% for the full year. Shareholders are rewarded with a final dividend of ₹36 per share, bringing the total FY26 payout to a record ₹51 per share.
- FY26 EBIT rose 39.2% YoY to ₹7,152 crores with margins expanding 290 bps to 12.6%.
- New deal wins reached a 5-year high of $3,794 million, up 41.6% compared to the previous year.
- Recommended a final dividend of ₹36 per share, totaling ₹51 for FY26 (1020% of face value).
- Q4 FY26 revenue stood at ₹15,076 crores, up 12.6% YoY, with PAT rising 16% YoY to ₹1,354 crores.
- Cash and Cash Equivalents remained strong at ₹8,456 crores at the end of the financial year.
Tech Mahindra reported a robust performance for FY26, with EBIT rising 39.2% YoY to ₹7,152 crores and margins expanding by 290 bps to 12.6%. The company achieved its highest deal wins in five years with a TCV of $3,794 million, marking a 41.6% YoY increase. A final dividend of ₹36 per share has been recommended, bringing the total FY26 payout to a record ₹51 per share. Management indicates the stabilization phase of their transformation is complete, with a clear focus on AI-led growth for FY27.
- FY26 EBIT grew 39.2% YoY to ₹7,152 crores with margins improving to 12.6%
- New deal wins reached a 5-year high of $3,794 million TCV, up 41.6% YoY
- Total dividend for FY26 stands at ₹51 per share, representing a 1020% payout on face value
- Q4 FY26 EBIT margin expanded to 13.8%, up 330 bps YoY
- LTM IT attrition remains healthy at 12.1% with a total headcount of 147,623
Tech Mahindra reported a strong financial performance for FY26, with EBIT growing 39.2% YoY to ₹7,152 crores and margins expanding by 290 bps to 12.6%. The company achieved its highest-ever deal wins of $3.8 billion, a 41.6% increase YoY, driven by AI-led transformations and large telecom deals. Shareholders will receive a final dividend of ₹36 per share, bringing the total annual payout to ₹51 per share. Management highlighted the completion of the stabilization phase and a focus on AI-led growth for FY27.
- FY26 Revenue grew 7.2% YoY to ₹56,815 crores, while EBIT surged 39.2% to ₹7,152 crores.
- EBIT margins improved significantly by 290 bps YoY to 12.6% for the full year.
- Total dividend for FY26 stands at ₹51 per share (1020% on face value of ₹5).
- New deal wins reached a 5-year high of $3,794 million, up 41.6% YoY.
- Q4 FY26 PAT rose 16% YoY to ₹1,354 crores with a margin of 9.0%.
Tech Mahindra reported a strong financial performance for FY26, with consolidated PAT growing 13.2% YoY to ₹4,811 crores. The company achieved its highest-ever deal wins in five years with a TCV of $3,794 million, up 41.6% YoY. Profitability showed significant improvement as EBIT margins expanded by 290 bps YoY to 12.6% for the full year, reaching 13.8% in Q4. Reflecting strong cash flows, the board recommended a final dividend of ₹36, bringing the total FY26 dividend to a record ₹51 per share.
- Full-year EBIT surged 39.2% YoY to ₹7,152 crores with EBIT margins expanding 290 bps to 12.6%.
- Record annual deal wins (TCV) of $3,794 million, marking a 41.6% increase over the previous year.
- Total dividend for FY26 stands at ₹51 per share (1020% on face value), the highest ever for the company.
- Q4 FY26 revenue grew 12.6% YoY to ₹15,076 crores with a healthy EBIT margin of 13.8%.
- IT attrition moderated to 12.1% while the company ended the year with a cash balance of ₹8,456 crores.
Tech Mahindra reported a strong set of results for FY26, with annual revenue growing 7.2% YoY to ₹56,815 crores. The company achieved a significant EBIT growth of 39.2% YoY, reaching ₹7,152 crores as margins expanded by 290 bps to 12.6%. A final dividend of ₹36 per share was recommended, bringing the total dividend for the year to a record ₹51 per share. Furthermore, the company secured its highest deal wins in five years with a TCV of $3,794 million, up 41.6% YoY.
- Recommended final dividend of ₹36 per share, taking the total FY26 dividend to ₹51 (1020% of face value).
- FY26 EBIT surged 39.2% YoY to ₹7,152 crores with EBIT margins improving to 12.6%.
- Full-year new deal wins (TCV) reached $3,794 million, representing a 41.6% growth YoY.
- Annual Profit After Tax (PAT) increased by 13.2% YoY to ₹4,811 crores.
- Record date for the final dividend entitlement is fixed as Friday, July 3, 2026.
Tech Mahindra reported a strong FY26 with consolidated revenue growing 7.2% YoY to ₹56,815 crores and EBIT surging 39.2% to ₹7,152 crores. The company achieved its highest-ever deal wins of $3.8 billion, marking a 41.6% YoY increase in TCV. Profit After Tax rose 13.2% to ₹4,811 crores, supported by a significant margin expansion of 290 bps to 12.6%. Shareholders are rewarded with a total dividend of ₹51 per share, reflecting a payout ratio supported by robust free cash flows of $616 million.
- EBIT grew 39.2% YoY to ₹7,152 crores with margins expanding 290 bps to 12.6% for the full year.
- Total dividend for FY26 stands at ₹51 per share (including ₹36 final dividend), the highest in company history.
- New deal wins (TCV) reached a 5-year high of $3,794 million, up 41.6% compared to the previous year.
- Q4 FY26 EBIT margin improved to 13.8%, marking the 10th consecutive quarter of margin expansion.
- Free cash flow for the year remained healthy at $616 million with cash equivalents of ₹8,456 crores.
Tech Mahindra has scheduled its Q4 and full-year FY2026 earnings announcement for April 22, 2026. The company will also host an Analyst Day in Pune, featuring an in-person walkthrough of its new Experience Centre and demonstrations of its AI capabilities from 2:00 PM to 5:00 PM IST. Following the showcase, management will discuss financial performance and strategic priorities starting at 5:15 PM IST. This event is significant as it will provide insights into the company's AI-led growth strategy and operational outlook for the next fiscal year.
- Audited Q4 and FY2026 financial results to be released on April 22, 2026.
- Analyst walkthrough and AI capability demonstrations scheduled from 2:00 PM to 5:00 PM IST.
- Management discussion on strategic priorities and financial performance starts at 5:15 PM IST.
- The event will be held in-person at Tech Mahindra's Hinjewadi, Pune campus.
Tech Mahindra has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations for the quarter ended March 31, 2026. The document confirms that share certificates received for dematerialization were processed, cancelled, and the depository's name was updated in the records within the prescribed timelines. This filing is a standard procedural requirement to ensure the accuracy of the company's share registry. It indicates that the company is adhering to regulatory timelines for shareholder services.
- Compliance certificate for the period January 1, 2026, to March 31, 2026, submitted to BSE and NSE.
- MUFG Intime India Private Limited (formerly Link Intime) acted as the Registrar and Share Transfer Agent (RTA).
- Confirmation that dematerialization requests were processed and certificates mutilated within prescribed timelines.
- The filing ensures the integrity and legal compliance of the company's electronic shareholding records.
Tech Mahindra has scheduled its audited financial results for the fourth quarter and full year ended March 31, 2026, for announcement on April 22, 2026. Following the results, the company will host an in-person Analyst Day 2026 and Earnings Meeting at its Pune facility starting at 5:15 PM IST. The management is expected to discuss the company's financial performance and provide updates on strategic priorities. This event is significant as it will provide insights into the company's growth outlook and operational efficiency for the next fiscal year.
- Q4 and FY2026 audited results to be released on Wednesday, April 22, 2026
- In-person Analyst Day 2026 and Earnings Meeting scheduled for 5:15 PM IST in Pune
- Management to provide updates on strategic priorities and financial performance
- The session will include a Q&A for institutional investors and analysts
- Transcript and recording of the meeting will be made available on the company website
Tech Mahindra has approved the merger of its wholly-owned step-down subsidiaries in Costa Rica, TM CRSA and Allyis TSSRL. TM CRSA, which reported a turnover of USD 0.31 million in FY25, will merge into Allyis TSSRL, which had a turnover of USD 9.61 million. The consolidation is intended to optimize operational costs and reduce compliance risks within the group. As this is an internal restructuring between two wholly-owned units, there is no cash consideration or change in the parent company's shareholding pattern.
- Merger of Tech Mahindra Costa Rica Sociedad Anonima (TM CRSA) into Allyis Technology Solutions (Allyis TSSRL).
- TM CRSA reported a turnover of USD 0.31 million for the financial year 2024-25.
- Allyis TSSRL reported a turnover of USD 9.61 million for the financial year 2024-25.
- The consolidation aims to reduce the number of group entities and optimize operational costs.
- No cash consideration or new share issuance is involved as the transferor is a subsidiary of the transferee.
Financial Performance
Revenue Growth by Segment
In FY25, total revenue grew 2% to INR 52,751 Cr. Segment performance: Banking, Financial Services and Insurance (BFSI) grew 4.3%; Retail, Transport and Logistics (RTL) grew 4.4%; Healthcare grew 3.7%. These were offset by a 5% decline in the Communication (CME) vertical and a 1.6% decline in Manufacturing.
Geographic Revenue Split
Tech Mahindra operates in over 90 countries with 90-95% of revenue derived from export of services. While specific regional percentages are not disclosed, the company maintains a higher level of geographical diversification compared to its IT peers.
Profitability Margins
Profit After Tax (PAT) margin was 9.1% in FY23. Net worth moderated to INR 27,147 Cr in FY24 from INR 28,395 Cr in FY23 due to lower PAT of INR 2,397 Cr and a dividend payout of INR 3,917 Cr. EBIT margin is targeted to reach 15% by FY27.
EBITDA Margin
PBILDT margin improved to 12.80% in FY25 from 9.47% in FY24. In Q1FY26, margins further expanded to 14.50% (up from 12.00% in Q1FY25) due to Project Fortius cost-saving initiatives and a better offshore delivery mix.
Capital Expenditure
Historical capital expenditure and acquisitions are funded internally through healthy cash flow from operations, which stood at INR 5,786 Cr in FY25 and INR 6,376 Cr in FY24. Specific planned CAPEX figures in INR Cr are not disclosed.
Credit Rating & Borrowing
The company maintains a 'Stable' outlook with a net-debt negative status. Total debt stood at INR 2,025 Cr as of March 31, 2025, against cash and liquid investments of INR 7,381 Cr. Fund-based limit utilization was less than 1% in FY25, indicating very low borrowing costs.
Operational Drivers
Raw Materials
Human Capital (Employee Compensation) represents the primary cost, accounting for 56.47% of revenue in FY24 (INR 29,336 Cr). Other costs include software licenses and sub-contracting expenses.
Import Sources
Talent is sourced globally, with a significant workforce of 1,47,620 employees (as of June 2024) located in India and onsite locations across 90+ countries.
Key Suppliers
Not applicable as a service-based IT company; primary 'suppliers' are the global workforce and third-party software vendors like Microsoft, SAP, and AWS for service delivery.
Capacity Expansion
Current capacity is defined by a workforce of 1,47,620 employees. Expansion is focused on 'Must-Have Accounts' and the 'Turbocharge' program to increase revenue per account rather than physical plant capacity.
Raw Material Costs
Employee costs increased by 464 bps YoY to 56.47% of revenue in FY24 due to wage hikes and contract overruns. However, attrition eased to 10% in Q1FY25 from 13% in Q1FY24, helping stabilize these costs.
Manufacturing Efficiency
Utilization levels were noted as a headwind in Q1FY26. Efficiency is being driven by 'Project Fortius' which targets general and administrative expense optimization and integration synergies.
Logistics & Distribution
Not applicable as services are delivered digitally or onsite at client locations across 90+ countries.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
Growth will be achieved through a 3-year roadmap: FY25 'Turnaround Phase' (grounding the new org, Turbocharge program), FY26 'Stabilization Phase' (full integration of portfolio companies), and FY27 'Reaping Returns' (improved structural mix and pyramid optimization).
Products & Services
Digital transformation, consulting, business re-engineering services, IT services (84% of revenue), and Business Process Outsourcing (BPO) (16% of revenue).
Brand Portfolio
Tech Mahindra, GenAI Studio (launched April 2023).
New Products/Services
Launched GenAI Studio in April 2023 and developed a Large Language Model (LLM) from scratch in 2024 to capture the growing demand for generative AI solutions.
Market Expansion
Focusing on 'Prioritized Markets' and 'Must-Have Accounts' (MHAs) to deepen penetration in BFSI, Healthcare, and RTL segments which grew between 3.7% and 4.4% in FY25.
Market Share & Ranking
Tech Mahindra is among the dominant IT players in India, particularly leading in the global communication vertical.
Strategic Alliances
The company utilizes strategic acquisitions to improve technological abilities, though large debt-funded acquisitions are monitored as a potential risk to the capital structure.
External Factors
Industry Trends
The industry is shifting toward Generative AI and cost-efficiency deals. Tech Mahindra is positioning itself by launching a GenAI studio and focusing on 'Project Fortius' to align with client demands for cost optimization.
Competitive Landscape
Faces intense competition from prominent IT players, resulting in pricing pressure and the need for continuous technological acquisitions.
Competitive Moat
Moat is built on deep domain expertise in the Communication vertical and a large workforce of 1.47 lakh employees. Sustainability is supported by 94-98% repeat business from a base of 1,100+ clients.
Macro Economic Sensitivity
Highly sensitive to recessionary pressures in the US and Europe, which led to project deferrals and lower deal wins (USD 359M in Q1FY24 vs USD 700-800M in previous quarters).
Consumer Behavior
Clients are increasingly seeking cost efficiency and AI-driven transformation, prompting TechM to shift from discretionary spending projects to cost-optimization contracts.
Geopolitical Risks
Exposed to protectionist measures and changes in immigration laws in various geographies, which can lead to higher H-1B visa denials and increased operational costs.
Regulatory & Governance
Industry Regulations
Subject to international labor laws and immigration regulations (H-1B visas). Compliance is managed through a digitized contract management system.
Environmental Compliance
Maintains low GHG emissions and focuses on safety and mental health as part of its ESG framework.
Taxation Policy Impact
Not specifically disclosed, but the company maintains transparent shareholder practices and sustained dividend payouts (INR 3,842 Cr in FY25).
Legal Contingencies
The company has provided INR 1,230 Cr for contingencies related to ongoing investigations and legal proceedings involving the erstwhile Satyam Computer Services Limited.
Risk Analysis
Key Uncertainties
The primary uncertainty is the outcome of Satyam-related legal proceedings and the potential for large debt-funded acquisitions to weaken the gearing ratio beyond 0.50x.
Geographic Concentration Risk
While diversified across 90+ countries, the company remains heavily dependent on the US and European markets for its 90-95% export revenue.
Third Party Dependencies
Low supplier dependency; however, it relies on 1,100+ active clients, with the top 10 contributing 24.7% of revenue.
Technology Obsolescence Risk
High risk due to disruptive technology changes like GenAI; the company is mitigating this by being the first GSI to develop an LLM from scratch in 2024.
Credit & Counterparty Risk
Receivables quality is generally high given the 94% repeat business from established global clients, though a provision was created in Q1FY24 for a client bankruptcy.