Tech Mahindra Revenue Slips Despite Deal Wins

Tech Mahindra reported a 1.4% decline in revenue in constant currency terms for the June quarter, as client spending cuts and project ramp-downs continued to weigh on performance. Still, the company closed $809 million in deal wins—up from $798 million in the March quarter and $534 million a year ago.

The management cited ongoing pressure in its US business, particularly in the semiconductor and automotive segments. These headwinds led to a 4% year-on-year decline in its manufacturing vertical, which contributes around 18% of overall revenue.

To support this segment, Tech Mahindra is leveraging its Chennai-based manufacturing experience centre, which has hosted over 60 client visits since its launch in January.

The company also noted that more than 77,000 employees have been trained in artificial intelligence and generative AI. It now offers over 200 enterprise-grade AI agents, many of which are being deployed at scale across sectors.

EBIT margin rose to 11.1% in the June quarter, up 50 basis points sequentially. Yet, gains were limited by seasonal factors, higher visa costs, and lower employee utilisation.

Tech Mahindra said market conditions remain volatile, especially in the automotive and hi-tech sectors. While it expects a recovery in the second half of 2025–26, demand sentiment remains mixed and discretionary spending continues to be cautious.

Despite the uncertainty, the company highlighted a strong deal pipeline for the coming quarters, with recent wins across telecom, banking, financial services, and insurance.

For the June quarter, Tech Mahindra reported consolidated net profit of ₹11.41 billion on revenue of ₹133.51 billion.