Tech Mahindra posted a strong performance for the first quarter of FY27, with higher investments in artificial intelligence (AI) and advanced engineering services helping improve profitability.
The IT services company reported a consolidated net profit of ₹1,465 crore for the quarter ended June 30, marking a 28.4% increase from ₹1,141 crore in the same period last year. Revenue from operations grew 17.7% year-on-year to ₹15,712 crore, while EBIT rose 53.3% to ₹2,264 crore. As a result, the company’s EBIT margin improved by 330 basis points to 14.4%.
The results reflect a broader trend in India’s IT sector, where companies are increasingly focusing on AI-driven transformation projects and higher-value engineering services to improve earnings despite uneven demand for traditional IT spending.
Tech Mahindra also recorded new deal wins worth $1.08 billion, up 33.3% compared to the previous year. Revenue in constant currency increased 6.6% year-on-year and 2.6% sequentially.
Chief Executive Officer Mohit Joshi said the company continued to strengthen its relationships with clients, noting that seven additional customers now generate more than $50 million in annual revenue. He added that every business segment delivered year-on-year growth, highlighting the resilience of the company and the increasing demand for its services. The company also achieved its third consecutive quarter with deal wins exceeding $1 billion.
Looking ahead, Tech Mahindra plans to continue investing heavily in AI. Chief Financial Officer Rohit Anand said the company remains focused on building long-term capabilities through investments in domain-specific AI, sovereign AI, digital platforms, and talent, while maintaining strong operational discipline.
During the quarter, the company introduced its Agentic Development & Modernisation Services portfolio and announced several strategic partnerships in areas such as enterprise AI search, autonomous cloud operations, and AI-powered medical writing. These initiatives further expand Tech Mahindra’s presence in the growing agentic AI market.
The company also secured multiple customer engagements where AI engineering, AIOps, and AI-driven operational services played a central role.
At the end of the quarter, Tech Mahindra had 1,46,760 employees, a decline of 863 employees from the previous quarter. However, employee attrition improved, with the IT services attrition rate falling to 11.8% over the last twelve months.
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