Tech Mahindra Ltd. announced its financial results for the third quarter of FY26, reporting a consolidated net profit of ₹1,122 crore, a 14.1% increase compared to the same period last year. The company's revenue from operations also saw substantial growth, rising 8.34% year-on-year to ₹14,393.2 crore from ₹13,285.6 crore in Q3 FY25.
Despite the positive results, the net profit fell short of the CNBC-TV18 poll estimate of ₹1,385 crore and was down 6% quarter-on-quarter. However, the company surpassed expectations in revenue, EBIT (Earnings Before Interest and Taxes), and operating margins.
The company's Earnings Before Interest and Taxes (EBIT) surged 40.1% year-on-year to ₹1,892 crore. The operating margin improved to 13.1%, exceeding the estimated 12.7% and demonstrating growth from 12.1% in the previous year. The diluted earnings per share (EPS) for the quarter stood at ₹12.64.
In terms of deal wins, Tech Mahindra secured new deals with a total contract value (TCV) of $1,096 million, marking a 47% increase year-on-year and a 34.3% increase quarter-on-quarter. Dollar revenue for the quarter reached $1,610 million, surpassing the polled $1,593 million, with constant currency revenue growth at 1.7%, significantly exceeding the estimated 0.60%.
The company's workforce totaled 149,616 employees at the end of the December quarter, a decrease of 872 employees year-on-year. The last twelve months (LTM) IT attrition rate stood at 12.3%. Tech Mahindra reported cash and cash equivalents of ₹7,666 crore at the end of Q3 FY26.
The Q3 results also reflect the impact of the New Labour Codes, which amounted to ₹272 crore.
Following the announcement, Tech Mahindra shares experienced a positive market reaction, jumping 5.17% to close at ₹1,670.55. The company's strong deal wins and constant currency growth indicate positive momentum for the future, effectively offsetting the profit miss and driving investor confidence.
