Big Wins, Tight Margins: Inside Tech Mahindra’s Tumultuous Q1 Performance

Image Source : Freshers Voice

Tech Mahindra reported Q1FY26 results with mixed signals. While net new deal wins soared to USD 809 million, both revenue and profit came in slightly below analyst expectations.

Key Takeaways:

Consolidated revenue from operations stood at Rs 133.51 billion, just shy of the IBES estimate of Rs 133.83 billion
Net profit was Rs 11.41 billion, trailing the Rs 11.72 billion consensus forecast
Deal momentum remained strong, with large wins across telecom and BFSI verticals

Operational Trends:

Margins improved sequentially, supported by rupee depreciation and cost optimization
BPO segment continued to expand, now contributing over 16 percent to the revenue mix
Hitech and manufacturing verticals faced headwinds, partially offset by seasonal strength in Comviva

Strategic Focus:

Project Fortius remains central to margin expansion goals
Management commentary emphasized GenAIled productivity and rationalization of lowmargin businesses

Sources: The Hindu BusinessLine, Economic Times, Zee Business, Business Standard, News18.