Q1 2027 Tech Mahindra Ltd Earnings Call Transcript
Key Points
- Tech Mahindra Ltd (BOM:532755) reported a strong revenue growth of 6.1% year-on-year on a reported basis and 6.6% in constant currency, indicating a positive momentum across the business.
- The company achieved an operating margin of 14.4%, reflecting sustained execution discipline and operational rigor.
- Tech Mahindra Ltd (BOM:532755) secured total deal wins of USD1.078 billion, showcasing strong client confidence and broad-based growth across key verticals.
- The company's BFSI business grew 8.1% year-on-year, driven by healthy demand in areas such as payment modernization and AI-led transformation.
- Tech Mahindra Ltd (BOM:532755) was recognized as one of the world's most sustainable companies by TIME, highlighting its commitment to environmental stewardship and responsible business practices.
- The communications business only grew by 1.3% year-on-year, facing challenges from Comviva seasonality and a client transitioning cloud consumption directly.
- The Technology, Media & Entertainment segment declined by 1.7% quarter-on-quarter due to continued volatility in client spend.
- Despite strong performance, the macroeconomic environment remains mixed, particularly affecting the retail, travel, and logistics vertical.
- The company faces competition with some competitors engaging in irrational pricing, which could impact future deal wins.
- Tech Mahindra Ltd (BOM:532755) anticipates some pressure on margins due to upcoming wage increases and productivity pressures from AI advancements.
Ladies and gentlemen, good day, and welcome to the Tech Mahindra Limited Q1 FY27 earnings conference call. We have with us today, Mr. Mohit Joshi, Chief Executive Officer and Managing Director; Mr. Rohit Anand, Chief Financial Officer; and Mr. Atul Suneja, Chief Operating Officer.
(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 and thank you all for joining us. Welcome to our Q1 FY27 earnings call. Now in April 2024, we had presented a three-year turnaround plan with clear goal posts and measurable markers for success. The first year of our plan was focused on laying the foundations, which would lead to margin expansion.
And in the final year of the plan, we would see growth outpacing our peers. We also promised to build a future-facing organization with differentiated capabilities and
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