Tech Mahindra reported a 14% year-on-year increase in consolidated net profit for the December quarter, supported by strong margin expansion, even as the company took one-time exceptional charges linked to the implementation of new labour codes.
The Pune-headquartered IT services firm posted a net profit of Rs 1,122 crore for the third quarter of FY26, compared with Rs 983.2 crore in the same period last year. However, it fell 6% sequentially due to a one-time exceptional charge of Rs 272.4 crore related to the implementation of the new labour codes, which increased gratuity and leave-related liabilities.
Revenue from operations rose 8.3% year-on-year to Rs 14,393 crore in the quarter, up from Rs 13,286 crore a year earlier. On a sequential basis, revenue increased 2.8%. Further, EBIT margin expanded to 13.1%, compared with around 10.2% in the year-ago period and was up around 100 basis points QoQ.
Deal activity strengthened during the quarter. Tech Mahindra reported new deal wins worth $1.1 billion, an increase of 47% compared with the same quarter last year and 34.3% higher than the previous quarter.
Mohit Joshi, CEO and Managing Director of Tech Mahindra, said, “Our deal wins on an LTM basis are the highest we have achieved in the past five years, reflecting an improved deal-win run-rate over the past several quarters. The momentum is a testament to our sustained investments in sales, solution-oriented go-to-market approach, and the growing relevance of our AI-led offerings in addressing client needs.”
In terms of workforce metrics, the company’s total headcount stood at 149,616 at the end of the December quarter, down by 872 employees YoY. LTM IT attrition rose to 12.3%, compared with 11.2% in the year-ago period. During the quarter, Tech Mahindra also reported steady traction across key markets. The Americas accounted for 50.6% of revenue, Europe 25.6%, and the rest of the world 23.9%.