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Informist, Thursday, Apr. 23, 2026

 

By Arya S. Biju

 

MUMBAI – Entering the last leg of its three-year plan, named 'Vision FY27', focusing on business momentum, margin improvement, and revenue growth, Tech Mahindra Ltd. is transitioning from stabilisation to the 'reaping returns' phase, its Chief Executive Officer and Managing Director Mohit Joshi said in a post-earnings analyst meet Wednesday. The information technology major reiterated its financial targets for 2026–27 (Apr-Mar), including achieving an organic constant currency revenue growth above its peer group's average and achieving an EBIT margin of 15%.

 

"The first year of the plan was always about the turnaround. The second year was the stabilisation, which has now come to an end. And the third year is when we said you will realise the benefits of the work that we've done in terms of margin expansion and in terms of faster growth," Joshi said. The company remains confident in its transformation journey in FY27 with continued focus on scaling capabilities, driving profitable growth, and leveraging artificial intelligence to enhance value delivery for its clients.

 

"While the global backdrop can still be demanding and geopolitical volatility exists, we're encouraged by the way we have strengthened our client offerings, built added trust and deepened our client engagement approaches over the last two years," Joshi said. "Our efforts are now paying off in stronger (deal) bookings, quantity and quality while also delivering margin expansion."

 

The management highlighted 'Project Helix' as a core AI pillar, integrating human capabilities and agentic and AI capabilities. Under this, the company aims to build capacity in eight areas including industry use cases, partnership ecosystem, research and development and platform, sales and marketing, and a new commercial model that truly incorporates AI. "We're looking about a new commercial model in the age of AI, rather than just looking at AI as a deflationary factor and just looking at AI as a productivity enhancer," Joshi said.

 

Going forward, the company said it will continue to invest in new technology, service line capabilities, and leadership. "We'll continue to invest in generative AI for long-term success, be very, very nimble in terms of our narrative on scale and speed, and then continue the large deal wins," the company's Chief Financial Officer Rohit Anand said. "Investment is something we don't want to shortchange because this is not a one year, two year journey. It is a continuous, long-term transformation that we are going to drive in the business," Joshi said.

 

While the company remains confident in achieving its FY27 financial targets, it noted some new potential challenges such as the rise of global capability centres in India, macroeconomic uncertainties, cybersecurity risks, regulatory changes including the change in H-1B visa norms, and the chatbots to agentic AI wave. With the continued expansion of GCCs, Tech Mahindra has adopted different models as to how it partners with them. "In some areas, you are competing with the GCCs. Some areas, you are almost acting as a vendor to the GCCs as well...we are trying to optimise our way of partnering with them to make it a win-win for them as well," a company official said.

 

While many IT companies have started reporting their AI revenue separately, Tech Mahindra is yet to start disclosing its AI-related sales. "I think as we progress over the next year, we will start making sure that we start thinking about it differently," the company's Chief Operating Officer Atul Soneja said. "Every single project is using some version or the other of AI. And we just need to find a meaningful way to report a metric to you which is credible. And I think over the next quarter in the year, we will work on it and start reporting it," Soneja added.

 

On Wednesday, Tech Mahindra reported a consolidated net profit of INR 13.54 billion for the March quarter, up around 21% sequentially but lower than analysts' estimate of INR 14.98 billion. The company's revenue for the quarter grew almost 5% sequentially to INR 150.76 billion. This was higher than the INR 148.12 billion expected by analysts. Shares of the company Thursday closed nearly 3% lower at INR 1,421.50 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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