India · Delayed Price · Currency is INR Tech Mahindra Earnings Call Transcripts
Fiscal Year 2027
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Q1 FY27 delivered strong revenue and margin growth, with all key verticals showing YoY gains and large deal wins up 33% YoY. AI-led transformation, domain expertise, and disciplined execution are driving growth, with a positive outlook for the remainder of the year and a target of 15% operating margin.
Fiscal Year 2026
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Q3 saw record deal bookings, strong revenue and margin growth, and major wins in telecom, manufacturing, and retail. Operating margin expanded to 13.1%, with robust free cash flow and a strong deal pipeline. AI and digital transformation remain key growth drivers.
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Q2 FY26 saw broad-based revenue growth, continued margin expansion, and strong deal wins, with manufacturing, BFSI, and logistics leading. AI investments and operational rigor are driving differentiation, while macro headwinds persist in some regions and segments.
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Q1 FY26 saw modest revenue growth and continued margin expansion, with strong deal wins and progress in Communications and BFSI offsetting softness in Manufacturing and Hi-Tech. Management remains confident in achieving FY27 margin targets and expects sequential revenue growth from Q2 as large deals ramp up.
Fiscal Year 2025
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Revised summary: FY 2025 saw stable revenue and a 60% rise in operating profit, driven by efficiencies and exits from non-core businesses. Large deal wins surged 42.5% YoY, with strong BFSI and retail performance, while manufacturing and communications faced headwinds. Management remains cautious for FY 2026 but targets margin and growth improvements.
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Q3 FY25 saw steady revenue and margin growth despite currency headwinds, with strong deal wins across telecom, BFSI, and healthcare. Operational efficiencies, investments in GenAI, and a diversified client base support confidence in achieving FY27 targets.
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Revenue grew 2.2% YoY and 1.9% QoQ, with margin expansion for the third straight quarter, driven by operational efficiencies and strategic deal wins. Telecom and manufacturing remain soft, but BFSI and other verticals showed growth. Management maintains a focus on margin discipline and long-term investments.
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Q1 FY25 saw sequential revenue growth and margin expansion, led by manufacturing and healthcare, while communications remained weak. New deal wins were strong and diversified, with continued investment in AI and operational efficiency. Management maintains a stable outlook, with upside potential if demand improves.