Tech Mahindra reports strong Q2 FY26 performance with margin expansion

Tech Mahindra reported revenue of $1,586m for Q2 FY26, marking a 1.6% sequential constant currency growth, its strongest in the past 10 quarters. The growth was broad-based across manufacturing, BFSI, retail, travel & logistics, and healthcare. On a year-on-year basis, revenue remained largely stable with a 0.2% decline on a reported basis, and a 0.3% decline in constant currency.

The company's EBIT margin expanded by 108 basis points to 12.1%, achieving its eighth consecutive quarter of margin improvement. This was primarily driven by enhanced fixed-price project productivity, volume growth, SG&A optimization, and a currency tailwind of approximately 40 basis points. Net new total deal revenue for the quarter reached $816m, a 57% increase year-on-year (LTM-to-LTM basis), spanning communications, manufacturing, BFSI, retail, transport, and logistics.

Tech Mahindra added 57 "must-have" accounts in FY25, with an additional 21 in the first two quarters of the current fiscal year; 17 of these have already generated over $1m in revenue. The company also announced the launch of TechM Orion, an agentic AI platform and its marketplace, solidifying its position in AI leadership. It has been recognized by the Government of India for its role in the India AI mission. The board recommended a dividend of Rs. 15 per share.