Tech Mahindra sets FY27 goals: 15% EBIT margin, 30% ROCE

Tech Mahindra has unveiled its long-term aspirations and key performance indicators for fiscal year 2027, projecting a turnaround by FY27. The company aims for profitable and sustainable growth exceeding the peer average, targeting approximately 1.3x growth in revenue from FY20 to FY27. Specific financial goals include achieving topline growth greater than the peer average, an EBIT margin of 15%, a ROCE exceeding 30%, and a capital return of over 85% of Free Cash Flow (FCF).

The roadmap includes a "Stabilization Phase" in FY26, focusing on continued above-normal investments, full integration of portfolio companies, and further progress on cost savings through "Project Fortius." This phase is designed to accelerate revenue growth and expand margins, leading to improved long-term structural mix and continuous improvement in pyramid in FY27.

The strategy encompasses prioritized markets, a balanced industry mix with focused verticals, a "Turbocharge Program" for key account growth, and a "Large Deal Program" to narrow the growth gap with peers. Key operational strategies include deepening capabilities, delivery excellence, and productivity gains, aiming for consistent margin expansion towards the FY27 target.