Tech Mahindra

“Coming to deal wins, our total deal wins for the quarter were US$1.023 billion. Wins were broad-based across verticals and geographies.”

“On a last-12-month basis, deal wins stand at US$4,270 million, up 34.8% Y-o-Y.”

“We were also selected by a leading Australian telecom operator as their strategic managed services partner for a 5-year engagement spanning application management, development, testing, and AI engineering services.”

“From a vertical perspective, in Communications, revenues grew 9.5% year-on-year, supported by the ramp-up of the Orange large deal and new strategic engagements.”

“The BFSI business grew 4.6% year-on-year. We remain focused on deepening our presence in payments and wealth management, modernizing client platforms, and strengthening our insurance capabilities.”

“Manufacturing grew 7% year-on-year. Aerospace saw good traction, supported by engineering demand and industrial opportunities centered on AI-led efficiency, supply chain visibility, and system consolidation.”

“Hi-Tech grew 6.7% year-on-year, supported by new deal wins.”

“Retail, Travel and Logistics grew 9.2% year-on-year, supported by new client wins and the ramp-up of consolidation and transformation engagements in the Americas.”

“No, we expect normal seasonality. We continue to see some weaknesses in our European auto manufacturing business, but those are all manageable within the existing portfolio that we have.”

“Now that AI build-out doesn't happen anymore, and the cost of memory and semiconductors goes down, it is possible that clients will be spending less on hardware, and so therefore, they will have more to spend on services or more broadly on technology.”

“As we move into the second half of FY27, we remain confident about sustaining business momentum going into the December quarter.”

“It is true that clients have started looking at open router and other models to be able to incrementally move AI inference workloads to cheaper open -source, open-weight models.”

“So we do not expect unreasonable seasonality or unreasonable furloughs in Q3 or Q4.”

“EBIT for the quarter stood at US$250 million with an EBIT margin of 14.8%, up 40 basis points on a Q-o-Q basis and 260 basis points on a Y-o-Y basis. The margin improvement was driven by strong volume growth and Project Fortius savings, partially offset by the wage hikes.”

“In rupee terms, operating profit stood at INR2,387 crores, up 40.5% Y-o-Y, aided by INR depreciation.”

“So I think we do see opportunities on gross margin that will continue not just for the second half, but the next three years as well, as we make our journey ahead.”

“We don't believe for a moment that the gross margin opportunities in the business have been fully tapped out, and we continue to work diligently to make sure that we can continue to expand margins while we obviously prioritize on growth.”

“while our utilization for this quarter has been high, the reality is that we do expect, as a result of the specific AI toolchain, we're building for each and every single service line, to be able to release head count across our fixed-price projects”

“DSO stands at 88 days, up four days Q-o-Q, but down six days on a Y-o-Y basis.”

“Completion is expected by December 2026, with commercialization activities expected thereafter.”

“We launched Indus-Terra, a 30-billion-parameter model built with NVIDIA and AWS, a part of IndiaAI Mission.”

“As we mark this milestone, I'm also pleased to announce that our Board of Directors has recommended a bonus share issue in a ratio of 1:1 for our shareholders.”

“The board has declared an interim dividend of INR15 per share, reaffirming our commitment to the laid-out capital allocation policy of returning 85% and above of free cash flow back to shareholders.”

“We have made a few small changes to the team. We have brought in additional leadership, and we remain very confident about our medium to long-term opportunities in BFSI.”

“Effective tax rate for the quarter came in at 29.9% due to a one-time tax adjustment related to prior periods tax matters. Excluding this one-time item, our tax rate was 26.6%.”

“In some areas, automation will reduce the effort required to deliver existing services and may put pressure on effort-based revenue models. But we are also seeing significant momentum in work related to consulting, modernization, data and analytics as our clients accelerate their AI journey.”

“A sequential revenue headwind associated with the program is expected in Q3 as well, though to a much smaller extent.”

“Obviously, there is a significant amount of client concentration that we have in this business, and so therefore, there is a degree of volatility that comes there.”

“I do feel that a lot of the cost compression, or the price compression that we've seen in the industry, has been because of competitive intensity rather than purely because of budget diversion towards AI.”

“I feel that clients, whether or not they deliver productivity internally, will continue to expect productivity from their partners and from their vendors. And as you know, the competitive pressures within the industry are still very high.”

“Organic revenue grew 2.3% Q-o-Q and 7% Y-o-Y in constant currency.”

“We expect to introduce AI revenue reporting as part of our H2 FY27 disclosures and continue it on an ongoing basis, refining the methodology as our portfolio and the markets mature.”

“More than 24,000 IT associates have been upskilled on AI productivity tools, over 4,500 have been skilled on agent platforms, and approximately 48,000 hold an AI certification.”

“Revenue in INR terms stood at INR16,180 crores, up 3% Q-o-Q and up 15.6% on a Y-o-Y basis.”

“Reported revenue stood at US$1,693 million, up 2% Q-o-Q and 6.8% Y-o-Y on a reported basis. On a constant currency basis, revenue grew 2.4% Q-o-Q and 7.2% Y-o-Y.”