Transcript of the Quarterly Earnings Meeting for the fourth quarter and financial year ended 31st March 2026- Regulation 30 and 46 of the Securities and Exchange Board of India (Listing ....
RESULTS
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 28 Apr 2026, 07:05 PM IST · BSE ID: a893e6e4-63c3-415a-9714-f2698666c05c
View Original BSE Filing (PDF)
💡
In Simple Terms
Tech Mahindra reported strong FY26 earnings with 31% operating profit growth and record deal wins of USD 3.79 billion.
🤖 AI Summary
- Tech Mahindra FY26 revenues USD 6.385 billion; operating profit USD 797 million, up 31.4% YoY
- Deal wins USD 3.79 billion for FY26, up 42% YoY, including Orange Business five-year partnership
- Q4 FY26 revenues USD 1.625 billion; manufacturing vertical led growth at 11.8% YoY
- Client base expanded: 29 clients above USD 50 million (+4 YoY), NPS score highest in industry
🔢 Key Numbers — exact figures from BSE filing, not rounded
FY26 Revenues
USD 6.385 billion
1.9% reported basis, 0.6% constant currency
Operating Profit FY26
USD 797 million
31.4% YoY
Operating Margin FY26
12.6%
290 basis points expansion
Deal Wins FY26
USD 3.79 billion
42% YoY
Q4 FY26 Revenues
USD 1.625 billion
4.9% YoY, 2.4% constant currency
USD 50M+ Clients
29
4 increase YoY
USD 20M+ Clients
66
7 increase YoY
Manufacturing Growth Q4
11.8% YoY
BFSI Growth FY26
3.7% YoY
Communications Growth FY26
2.6% YoY
🏢 How This Affects the Company
Deal wins of USD 3.79 billion (+42% YoY) indicate strengthened market positioning. Orange Business five-year partnership and telecom mega deal expand revenue pipeline. Client metrics improved: $50M+ clients to 29 and $20M+ clients to 66, reflecting deepened engagements and scope expansion including AI, data, and consulting services.
Operating profit USD 797 million grew 31.4% YoY with margins expanding 290 basis points to 12.6%. Full-year revenues USD 6.385 billion (+1.9% reported, +0.6% constant currency) reflect disciplined execution and margin expansion focus.
Company scaled AI capabilities across services with Claude Core training program launch and partnerships with Microsoft, NVIDIA, and FICO. Vertical-wise, Manufacturing grew 11.8% in Q4, with aerospace and industrial process manufacturing driving growth; BFSI grew 3.7% YoY through focus on asset/wealth management and payments; Communications stabilized with largest US client spending increase.
Hi-Tech vertical declined 2.7% YoY due to semiconductor client restructuring and muted discretionary spend, though stabilization noted in H2. Healthcare declined 0.6% YoY from regulatory policy challenges in provider and life sciences segments, partially offset by increased payer client engagements.
👥 What This Means For Shareholders
✅
Action Required
No action required. Review FY27 guidance and transformation plan progress in upcoming quarterly disclosures.
👤
Who Is Affected
All equity shareholders benefit from margin expansion (290 bps to 12.6%), operating profit growth (31.4% YoY), and expanded client relationships indicating revenue stability and upside. Dividend of Rs. 51 per share was declared for FY26.
🔍
Management Signal
Management prioritizes disciplined execution, margin expansion, and AI-led service differentiation. Strategic mega deals and vertical-focused investments signal confidence in three-year transformation plan execution and competitive positioning against larger peers.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Q1 FY27 results — track if revenue momentum sustains above USD 1.6 billion and margins hold above 12%
Orange Business partnership deal ramp-up — monitor scope expansion and revenue contribution in quarterly updates
AI-led deal closure ratio — track percentage of new wins with AI-embedded services versus traditional offerings
MEDIUM RISK
Hi-Tech vertical declined 2.7% YoY and Healthcare declined 0.6% YoY, offsetting strength in Manufacturing. FY27 transformation year execution will determine if momentum sustains amid sector headwinds.
💡 Investor Takeaway
FY26 delivered USD 6.385 billion revenue with operating profit USD 797 million up 31.4% YoY and margins expanding 290 basis points to 12.6%. Deal wins of USD 3.79 billion, up 42% YoY, confirm strategic positioning shift. Industry-highest NPS score and expanded USD 50M+ client base to 29 validate deepened client relationships.
⚖️ Strengths & Concerns
✅ Positives
- Operating profit grew 31.4% YoY to USD 797 million with margins expanding 290 basis points to 12.6%.
- Deal wins USD 3.79 billion up 42% YoY; client base expanded with 4 additional USD 50M+ clients reaching 29.
⚠️ Concerns
- Hi-Tech vertical declined 2.7% YoY; semiconductor restructuring and muted discretionary spend created headwinds.
- Healthcare declined 0.6% YoY due to regulatory policy challenges impacting provider and life sciences segments.
📅 Company Track Record
Tech Mahindra FY26 marked a transformational year: operating profit grew 31.4% YoY to USD 797 million with 290 basis points margin expansion to 12.6%, versus FY25. Deal wins of USD 3.79 billion represented 42% YoY growth. NPS score improved from median to industry-highest in single year. Prior quarter (Q3 FY26) reported large telecom mega deal. Company declared dividend of Rs. 51 per share for FY26.
Based on publicly available historical data. For context only.