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Earnings Call Transcript

Tech Mahindra Earnings Call Transcript: Key Takeaways

Tech Mahindra reported strong Q1 FY27 results with $1.66B revenue and 14.4% EBIT margin. The company is executing a three-year turnaround focused on AI-led growth and operational rigor.

Guidance and delivery
Management target Revenue FY27
Highlights
Revenue growth6.1% YoY reported; 6.6% constant currency.
MarginsEBIT at 14.4%, up 330 bps YoY.
Order book$1.078B deal TCV; third consecutive billion-plus quarter.
Demand visibilityStrong order book; optimistic despite macroeconomic volatility.
Management confidenceHigh; confident in meeting targets and beating peer average.

Growth

Revenue grew 6.1% YoY (6.6% CC). Manufacturing led with 17.2% YoY growth. PAT rose 16.2% YoY to $154M.

Outlook

Targeting 15% operating margin for FY27. Expects growth to outpace peer average in the final transformation year.

Risks

Volatility in US telecom spending, European automotive slowdown in Q2, and upcoming wage hike impacts on margins.

Last quarter's promises, checked

Delivered

  • Guided 13.8% Q4 margin → delivered 14.4% Q1 (= BEAT)
  • Guided $1.073B deal wins → delivered $1.078B (= BEAT)
  • Guided organic CC growth above peer average → delivered 6.6% CC (= BEAT)

Partly delivered

  • Targeting 15% EBIT margin for FY27 → delivered 14.4% (= PARTIAL)
Source

Earnings Call Transcript filed with BSE, NSE: TECHM. Summary written with AI assistance from the document.

Read the document ↗

Tech Mahindra Ltd: key numbers

Share price
₹1,548.00
Market cap
₹1,51,729 Cr
Revenue (annual)
₹56,815 Cr
Net profit (annual)
₹4,811 Cr
P/E (TTM)
29.6×Sector 22.1×
Promoter holding
34.97%+0.00% QoQ
FII holding
18.66%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Tech Mahindra received an unsolicited ESG rating of 76 from NSE Sustainability Ratings and Analytics. The rating was independently assigned based on public fiscal 2026 data.