Tech Mahindra’s three-year transformation programme under CEO and Managing Director Mohit Joshi is showing measurable progress, with the IT services company improving profitability while also focusing on accelerating revenue growth. The company had set ambitious targets in 2024 to improve margins and grow faster than its Indian IT services peers.

From 6% margins to a 15% target

When the transformation plan was announced, Tech Mahindra’s EBIT margin was around 6% at the end of March 2024. The company set a target of reaching a 15% margin by FY27.

In Q1 FY27, EBIT margin reached 14.4%, bringing the company close to its stated target.

Business Today’s analysis notes that the company’s approach involved setting clear, measurable targets and aligning different parts of the organisation around those goals.

Revenue rises to ₹15,712 crore

For the quarter ended June 30, 2026, Tech Mahindra reported consolidated revenue of ₹15,712 crore, up 17.7% year-on-year. In dollar terms, revenue stood at $1.66 billion, with constant-currency growth of 6.6% year-on-year.

EBIT increased to ₹2,264 crore, up 53.3% year-on-year, while consolidated profit after tax rose 28.4% to ₹1,465 crore.

Deal wins cross $1 billion

Tech Mahindra also reported strong deal momentum. New deal wins in Q1 FY27 reached $1.078 billion, representing a 33.3% year-on-year increase.

The company recorded more than $1 billion in deal wins for the third consecutive quarter, according to its latest financial update.

AI becomes a major growth focus

AI is increasingly central to Tech Mahindra’s growth strategy. During the quarter, the company expanded its AI capabilities through partnerships with companies including Perplexity, Microsoft and Cisco, while also launching its Agentic Development & Modernization Services portfolio.

The company has also described its broader transformation as a move towards becoming an AI-led organisation.

From stabilisation to growth

Business Today’s analysis describes Tech Mahindra’s transformation as a shift from stabilising the business and improving margins towards accelerating growth.

The company’s three-year plan was designed around measurable financial goals, with the final phase placing greater emphasis on revenue growth and business expansion.

Workforce and other figures

Tech Mahindra had 146,760 employees at the end of Q1 FY27, down 863 sequentially. Its last-twelve-month IT attrition stood at 11.8%, while cash and cash equivalents were ₹9,695 crore.

What comes next

Tech Mahindra is continuing to target a 15% EBIT margin while seeking growth that exceeds the broader Indian IT services industry. Its latest quarterly numbers show simultaneous improvement in margins, profitability and deal momentum.