Mumbai: Tech Mahindra reported a 14.1 percent year-on-year rise in consolidated net profit to Rs 1,122 crore in the third quarter ended December 2025, even as profit declined sequentially due to a one-time exceptional charge. Revenue from operations grew 8.3 percent YoY to Rs 14,393 crore, supported by steady demand across its IT and business process services segments.
For Q3 FY26, Tech Mahindra posted consolidated revenue of Rs 14,393 crore compared with Rs 13,286 crore in the year-ago quarter and Rs 13,995 crore in Q2 FY26. Net profit attributable to owners stood at Rs 1,122 crore, up from Rs 983 crore a year earlier but lower than Rs 1,195 crore in the preceding quarter. The sequential dip was largely on account of an exceptional employee benefit charge of Rs 272 crore linked to the implementation of India’s new labour codes.
Profit before tax declined 9.3 percent quarter-on-quarter to Rs 1,505 crore, despite stable operating performance. Total expenses rose marginally to Rs 12,595 crore in Q3 from Rs 12,373 crore in Q2, while employee benefit costs remained elevated. The IT services segment contributed Rs 12,076 crore to revenue, while the BPS segment added Rs 2,318 crore during the quarter.
Sequentially, operating margins were impacted by the exceptional item, though underlying business momentum remained intact. Excluding the one-time charge, profitability trends continued to improve, supported by cost discipline and higher deal wins. Diluted earnings per share stood at Rs 12.64, compared with Rs 13.46 in Q2 and Rs 11.08 in Q3 FY25.
Commenting on the performance, Managing Director and CEO Mohit Joshi said the company recorded its highest deal wins in five years, reflecting improved sales execution and growing traction of AI-led offerings. CFO Rohit Anand highlighted that the quarter marked the ninth consecutive quarter of margin expansion, excluding exceptional items, alongside strong cash generation and improved working capital efficiency.
For the nine-month period ended December 2025, Tech Mahindra’s consolidated revenue rose 5.4 percent YoY to Rs 41,739 crore, while net profit attributable to owners increased 12.1 percent to Rs 3,457 crore. The company said it remains on track toward its medium-term operational and financial goals.
Disclaimer: This news summary is based on audited financial results disclosed by the company. Figures are as reported and do not constitute investment advice or forward-looking guidance.
