Tech Mahindra FY26 EBIT rises 39.2% to ₹7,152 crore; highest-ever ₹51 dividend
Tech Mahindra capped FY26 with a 39.2% jump in operating profit to ₹7,152 crore and a record ₹51 per share dividend.
- ₹7,152 crore
- ₹51
- $3,794 Mn
- ₹56,815 crore
What Happened
Tech Mahindra reported FY26 revenue of ₹56,815 crore, up 7.2% year on year, with EBIT of ₹7,152 crore (up 39.2%) and PAT of ₹4,811 crore (up 13.2%). In the March 2026 quarter, revenue rose 12.6% YoY to ₹15,076 crore, EBIT rose 48.3% YoY to ₹2,084 crore, and PAT rose 16.0% YoY to ₹1,354 crore. Diluted EPS for the quarter was ₹15.24. Headcount closed at 147,623 (down 1,108 YoY), LTM IT attrition was 12.1%, days sales outstanding were 89, and quarter-end cash and equivalents were ₹8,456 crore.
₹7,152 crore
Up 39.2% YoY; EBIT margin 12.6%, up 290 bps YoY.
₹51 per share
Includes ₹36 final dividend; up over 13% YoY; highest ever.
- FY26 new deal wins TCV reached $3,794 Mn, up 41.6% YoY — the highest in five years, including consecutive quarters above $1 billion.
- Won a large, multi-year AI-led transformation and outsourcing engagement with a major European telecom operator, spanning customer support, quote-to-bill, and post-sales services, with agentic AI embe
- Selected by a leading North American automotive OEM as strategic partner for application development and support across mission-critical enterprise systems.
- Won managed services with a European retail bank, and was named sole strategic partner by a Fortune 500 energy major for infrastructure, cloud, service desk, end-user computing, and allied services.
- Launched an education-focused LLM with eight billion parameters at the India AI Impact Summit; IndusLLM was demonstrated on Intel's next-gen Panther Lake architecture; launched an Agentic Payment Assi
- Collaborated with Microsoft on an ontology-driven Agentic AI platform, with NVIDIA on an AI-powered Telco Network Operations Reasoning Agent, and partnered with Fortinet (Managed SASE), FICO (AI-power
“We are accelerating our transition to an AI-led organization, embedding AI across services and expanding our capabilities to enhance value delivery for our clients. This is reflected in our highest deal wins in recent years including consecutive quarters exceeding $ 1 billion. We remain focused on scaling with discipline and are on track to delivering our FY27 commitments.”
“FY26 marked the end of the Stabilization Phase of our transformation journey, with margins expanding for the 10th consecutive quarter despite a challenging macro environment. In line with our disciplined capital allocation framework and commitment to our shareholders, we increased the dividend by over 13%, taking total dividends declared for the year to ₹51 per share, our highest ever.”
Tech Mahindra also collected a string of awards and analyst recognitions. It was named 'Retailers' Favorite' at the NRF VIP Awards, recognized in the S&P Global Sustainability Yearbook 2026 as one of only two IT services companies in the Top 1% category, and included in the World Economic Forum's MINDS 2nd Cohort. It earned an A in the CDP Supplier Engagement Assessment, ranked ninth globally in the Brand Strength Index, won Google Cloud Partner of the Year for Manufacturing, and won the CIO Choice 2026 Award for Mahindra & Mahindra's data and AI transformation. In analyst ratings, it was named a Major Contender and Star Performer in Everest Group's PE Services PEAK Matrix Assessment 2026, a Leader in the Travel, Transportation, and Hospitality Digital Services 2025 RadarView, and a leader in three CX Services in Travel & Hospitality 2026 capabilities.
Why this matters
Tech Mahindra's results show a technology consultancy converting its transformation push into higher profit: EBIT margin reached 12.6%, up 290 basis points, and deal wins hit their highest level in five years. For shareholders, the total dividend of ₹51 per share is the company's highest ever, up over 13%. For clients, the company is embedding AI across services, with large new contracts from telecom, banking, automotive, energy, and healthcare buyers.
Terms in This Story
- EBIT
- Earnings before interest and taxes; a measure of operating profit.
- PAT
- Profit after tax; net income for the period.
- TCV
- Total contract value; the total value of deals signed during the period.
- Constant currency
- A method that removes the effect of exchange-rate changes when comparing financial results across periods.
Summarised from the linked release; details can be imperfect — always verify against the original source.