Bengaluru: Tech Mahindra reported a strong start to FY27, posting broad-based revenue growth, margin expansion and robust deal wins, as the company continued to benefit from its AI-led transformation strategy and disciplined execution.Revenue for the June quarter stood at $1.6 billion, up 2.2% sequentially and 6.1% year-on-year in reported terms. In constant currency, revenue increased 2.6% quarter-on-quarter and 6.6% year-on-year.“This performance reflects continued momentum across the business, broad-based growth across our key verticals, broad-based progress in our AI-led strategy, and very strong client engagement across markets,” said Tech Mahindra CEO Mohit Joshi during the earnings call on Thursday.EBIT margin expanded 60 basis points sequentially and 330 basis points year-on-year to 14.4%, while net profit rose 16.2% year-on-year to $154 million.Chief financial officer Rohit Anand said the margin expansion was driven by volume growth and savings from Project Fortius, partly offset by Comviva seasonality and business mix.The company also recorded its third consecutive quarter of deal wins exceeding $1 billion, with total deal wins of $1.08 billion, reflecting sustained client demand across verticals.“We have delivered margin expansion consistently over the past two years. More recently, our growth has begun to move ahead of the peer average. We had said that in the third year of the transformation, we would pivot strongly to growth, and as the numbers today show, we have done just that,” Joshi said.During the quarter, Tech Mahindra expanded its AI capabilities through partnerships with Perplexity, Microsoft, Cisco, while launching its Agentic Development & Modernization Services portfolio. The company also acquired Canada’s Avant Techno Solutions to strengthen its payments modernisation and wealth management capabilities in the BFSI sector.The company said it expects the momentum to continue, supported by a healthy deal pipeline, deeper client relationships and growing enterprise adoption of AI-led transformation initiatives.
