TechM’s Q3 net profit up 14% at ₹1,122 cr. despite labour code impact

Tech Mahindra, the technology arm of Mahindra Group, has on Friday reported a 14% year-on-year increase in its third quarter net profit at ₹1,122 crore, aided by a strong margin expansion.

The Quarter also saw its revenue increasing ₹14,393 crore, 8.3%, compared with ₹13,286 crore in the corresponding period a year ago.

TechM’s operating performance improved sharply, in the quarter, with EBIT rising 40.1% to ₹1,892 crore, while the EBIT margin expanded to 13.1%. The company also incurred a one-time labour code cost of ₹272 crore and saw lower tax expenses in Q3.

Mohit Joshi, CEO and Managing Director, Tech Mahindra while addressing the media said, the company’s deal wins on an LTM basis were the highest it has seen in the last five years.

“The momentum is a testament to our sustained investments in sales, solution-oriented go-to-market approach and the growing relevance of our AI-led offerings in addressing client needs. Together, these efforts are laying a strong foundation for long-term value creation,’’ he added.

The tech firm posted new deal wins worth $1.1 billion during the quarter, a 47% increase over a year ago period.

“This quarter reflects a well-rounded financial performance, marked by the ninth consecutive quarter of margin expansion and continued strength in cash generation.We remain on track in our progress toward our FY27 goals,’’ said Rohit Anand, Chief Financial Officer, Tech Mahindra.