IT svcs won't diminish, may become more important in AI era - Tech Mahindra
This story was originally published at 13:00 IST on 24 June 2026
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MUMBAI – The role of information technology services will not diminish, it will change and in many ways, become more important as artificial intelligence moves to the centre of enterprises and nations, Mahindra group Chairman Anand Mahindra said in Tech Mahindra's annual report for 2025-26 (Apr-Mar).
The next era of AI will be defined not only by the largest foundation models, but also by the ability of enterprises to convert their own knowledge, data and ways of working into AI-enabled institutional capability that they shape, govern and own, Mahindra said, adding that companies like Tech Mahindra provide that enabling layer, turning technology into business partner that delivers real value. "AI will reshape our industry, change the nature of work, alter the economics of software and services, and challenge old models. But it will also create one of the largest opportunities our industry has ever seen: the opportunity to help enterprises, and nations, convert intelligence into trusted impact," Mahindra said.
"Done right, AI should drive more investment in technology, not less," Mohit Joshi, managing director and chief executive officer of Tech Mahindra, said in the report. For AI to be truly useful at scale, organisations will need significant effort over the next three to five years to modernise and get their data in order, he said, adding that Tech Mahindra will help clients take AI from intent to production at enterprise scale.
The company remains confident of achieving its operating margin target of 15% and aspiration of growing faster than its top-tier peers in FY27. "Two years of disciplined execution, a reshaped portfolio, and a shift to higher-value services gives me immense confidence that we are entering the most exciting phase of TechM's journey," Joshi said.
However, the company flagged concerns about customer spending remaining cautious amid the uncertain macroeconomic environment. "We anticipate that customers shall be cautious in committing long-term IT spend, as they would want to watch out for macro stabilisation before embarking on large investments," the company said. Further, immigration regulations continue to tighten, with many governments attempting to increase their local employment. However, the company sees low employee attrition risk amid low net hiring in the industry.
At 1248 IST, shares of Tech Mahindra traded over 2% higher at INR 1,444.30 on the National Stock Exchange. For the March quarter, the company reported a consolidated net profit of INR 13.54 billion on revenue of INR 150.76 billion. End
US$1 = INR 94.6550
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Arya S. Biju
Edited by Avishek Dutta
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