Tech Mahindra is beginning to see positive results from its strategic transformation plan, with improved operating margins and a rise in large deal wins reflecting growing client confidence, CEO and Managing Director Mohit Joshi said.
Speaking about the company’s progress, Joshi said the strategy introduced by the new leadership over the past three years is starting to deliver measurable outcomes. He noted that the company is now moving from a phase of stabilization to acceleration as global businesses transition towards enterprise intelligence driven by artificial intelligence (AI).
During the December 2025 quarter, Tech Mahindra’s operating margin expanded by nearly 100 basis points to 13.1 percent, marking the ninth consecutive quarter of margin expansion. The improvement exceeded market expectations, with analysts at PL Capital estimating margins at around 12.6 percent.
According to analysts, the margin growth was largely driven by efficiencies under the company’s internal transformation initiative, Project Fortius, along with a modest currency tailwind of around 20–30 basis points.
The company also recorded strong momentum in deal wins. Tech Mahindra’s total contract value (TCV) of new deals reached $1,096 million during the quarter, representing the highest quarterly bookings in five years and a 47 per cent increase compared to the previous year.
Joshi said the surge in deal volumes reflects positive client response to the company’s sharper business positioning and disciplined approach to deal selection. The firm is also strengthening capabilities in areas such as AI-led transformation, engineering and manufacturing services, telecom modernization, and global capability centers (GCCs).
Joshi, who took charge as CEO in December 2023, unveiled a three-year turnaround roadmap in April 2024 titled Vision 2027: Scale at Speed. The strategy aims to strengthen the company’s core operations by simplifying processes, sharpening the service portfolio, and improving execution discipline while rebuilding confidence among clients, employees, and investors.
As part of the transformation, the company reorganized its structure into six strategic business units to enhance agility and accountability.
The turnaround strategy was introduced at a time when the company was facing financial pressure. In the March 2024 quarter, Tech Mahindra reported a 41 per cent year-on-year decline in consolidated profit to ₹661 crore, while revenue fell around 6 per cent during the same period. For the full financial year FY24, profit dropped to ₹2,358 crore, and revenue declined 2.4 percent to ₹51,996 crore.
The company has outlined a phased recovery plan, identifying FY25 as a turnaround year, FY26 as a stabilization phase, and FY27 as the period when the strategy is expected to deliver stronger growth.
Analysts at Axis Direct said the company’s deal pipeline remains strong and its focus on expanding digital services is likely to support growth in the coming quarters.
Meanwhile, Tech Mahindra’s workforce declined slightly to 149,616 employees during the December 2025 quarter, mainly due to attrition and the company’s ongoing transformation program. Joshi said the firm is prioritizing redeployment of existing talent rather than large-scale hiring.
Margin growth and strong deal wins show clients’ trust in Tech Mahindra’s strategy: CEO Mohit Joshi
