About the company:
Tech Mahindra is a leading Indian multinational technology company that provides IT services, digital transformation, and business process outsourcing solutions. A part of the Mahindra Group, it is headquartered in Pune, India, and operates in over 90 countries. The company specializes in areas such as AI, cloud computing, cybersecurity, 5G, blockchain, and IoT, serving industries like telecommunications, banking, healthcare, manufacturing, and retail. Tech Mahindra is known for its focus on innovation, sustainability, and delivering next-generation digital solutions to businesses worldwide.
Key Business Segment Highlights:
Telecom & Communications:
Signed major network transformation deals, including a Network-as-a-Service project.
Won a contract from a top U.S. telecom firm for customer experience services.
Three major deals in Europe and North America to modernize telecom infrastructure with AI.
BFSI & Healthcare:
BFSI grew 2.7% QoQ, healthcare grew 4.5% QoQ in constant currency.
Signed core banking modernization projects and GenAI-powered automation deals.
Manufacturing & Automotive:
Declined 2.5% QoQ, mainly due to Pininfarina’s weak performance.
Secured large deals with European & Japanese automakers for IT and engineering services.
Technology, Media & Entertainment:
Signed cloud transformation and AI projects for global media companies.
Strengthened ServiceNow & NVIDIA AI partnerships for enterprise automation.
Strategic Initiatives & Partnerships:
GenAI & AI Investments:
Launched TechM agentX, an AI automation platform improving enterprise productivity by up to 70%.
NVIDIA AI partnership for AI-driven digital twins and intelligent automation.
Expanded AWS collaboration for AI-powered network operations.
Project Fortius (Margin Expansion Plan):
Focused on cost optimization, AI-driven automation, and pricing discipline.
Headcount efficiency & fixed-price project optimization driving margin improvements.
Outlook & Industry Trends:
FY27 Goal: Aiming for 15% EBIT margin with sustained revenue growth.
Telecom sector recovery underway, with vendor consolidation & cost-driven deals leading growth.
BFSI, healthcare, and cloud-based enterprise solutions expected to drive demand in CY25.
Client renewals remain strong, with pricing adjustments for AI and automation value addition.
Here is a summary of Tech Mahindra’s financial performance over the last three quarters (Q1 FY25, Q2 FY25, and Q3 FY25):
| Financial Metrics | Q1 FY25 | Q2 FY25 | Q3 FY25 |
|---|---|---|---|
| Revenue (₹ Crores) | 13,159 | 13,393 | 13,286 |
| Revenue ($ Million) | 1,598 | 1,587 | 1,567 |
| EBIT (₹ Crores) | 1,086 | 1,297 | 1,350 |
| EBIT Margin (%) | 8.3% | 9.7% | 10.2% |
| Net Profit (₹ Crores) | 692 | 906 | 983 |
| Net Margin (%) | 5.3% | 6.8% | 7.4% |
| Free Cash Flow ($ Million) | 123 | 178 | 199 |
| Net New Deal Wins ($ Million) | 381 | 603 | 745 |
| Cash & Cash Equivalents (₹ Crores) | 6,755 | 6,782 | 6,841 |
Recent updates:
Highlights from last con call:
Financial Performance:
Revenue: $1.567 billion (₹13,286 crores), 1.3% YoY growth in constant currency.
EBIT Margin: 10.2%, up 60 bps QoQ despite currency headwinds.
Net Profit: $116 million (₹983 crores), 7.4% net margin, improving 80 bps sequentially.
Free Cash Flow: $199 million, strong 172% PAT conversion.
Net New Deal Wins: $745 million, driven by telecom, BFSI, and healthcare.
Cash & Cash Equivalents: $799 million (₹6,841 crores).