Q1 2026 Tech Mahindra Ltd Earnings Call Transcript
Key Points
- Tech Mahindra Ltd (BOM:532755) reported a 44% year-on-year increase in total contract value (TCV) for large deals, indicating strong deal momentum.
- The company achieved its seventh consecutive quarter of margin expansion, highlighting effective cost management and operational efficiency.
- The BFSI vertical showed robust growth with a 4.7% year-on-year increase, driven by strong client engagements in asset and wealth management.
- Tech Mahindra Ltd (BOM:532755) added two clients in the $50 million revenue bucket, demonstrating its ability to scale engagements with key accounts.
- The company has made significant progress in its AI strategy, with over 200 enterprise-grade AI agents developed, enhancing its competitive edge in digital transformation.
- Revenue growth was modest, with a 0.4% year-on-year increase and a 1% decline on a constant currency basis, reflecting challenges in the current business environment.
- The manufacturing vertical declined by 4% due to reduced discretionary spending in the automotive sector.
- The high-tech vertical experienced a 3.3% year-on-year decline, impacted by restructuring in the semiconductor industry.
- The Americas region saw a 5.9% year-on-year revenue decline, indicating regional challenges.
- The company faces ongoing volatility and uncertainty in the macroeconomic environment, which could impact future growth and margin targets.
Ladies and gentlemen, good day, and welcome to the Tech Mahindra Limited Q1 FY26 earnings conference call. We have with us today Mr. Mohit Joshi, Chief Executive Officer and Managing Director, Tech Mahindra; and Mr. Rohit Anand, Chief Financial Officer, Tech Mahindra. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mohit Joshi, MD and CEO for Tech Mahindra. Thank you, and over to you, sir.
Thank you. Good morning, good evening, and thank you all for joining us. (technical difficulty) that Q1 reflects progress aligned with our stated plans. While the environment remains dynamic and uncertain, our continued execution is building confidence that we are on the right path.
For the quarter, we reported revenues of $1,564 million, reflecting a 0.4% growth year-on-year and a 1% decline on a constant currency basis. The performance was driven by growth in the communications, retail and BFSI verticals. The year
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