Tech Mahindra, one of India's largest IT services firms, reports its Q2 FY 2026-2027 numbers with the sector still searching for a demand acceleration amid AI-led pricing pressure and macro uncertainty. The print will speak to two things: whether the EBIT margin can close the gap from 14.4% toward the 15% FY27 target, and whether the pending large European communications deal begins ramping up to offset a 1-1.3% revenue timing pressure from accelerated European auto deliveries.
| Results date | October 15, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | USD 1,660 Mn (+2.2% QoQ, +6.1% YoY); Rs. 15,712 crores, up 4.2% QoQ and 17.7% YoY |
| Previous quarter PAT | USD 154 Mn; margin 9.3% |
| Previous quarter EBIT margin | 14.4% |
| Previous quarter deal wins | USD 1,078 Mn |
| Market cap | Rs. 148,405.89 Cr |
| CMP | Rs. 1,514.1 |
Tech Mahindra is scheduled to report its Q2 FY 2026-2027 results on October 15, 2026.
The quarter's central test is the margin bridge: EBIT margin has climbed from 12.1% in Q2 FY26 to 14.4% in Q1 FY27, leaving roughly 60 bps to reach management's 15% FY27 target, with Project Fortius, fixed-price productivity and portfolio-company SG&A consolidation identified as the levers. On growth, the CFO had quantified a 1-1.3% pressure on Q2 from an accelerated delivery schedule within a normal European auto project, and said the company expected other business and the ramp-up of a pending large communications deal to offset it. Deal momentum is a supporting signal: quarterly deal wins were USD 1,078 Mn in Q1 FY27, up 33% YoY, and LTM deal wins stood at USD 4,063 Mn, up 37.5% YoY, though management cautioned that large-deal ramp-up is not linear and visibility beyond one or two quarters is limited. Operating indicators entering the quarter show IT headcount at 74,689 (down 7% YoY), utilization at 87.0% and LTM attrition at 11.8%, with management guiding to higher fresher hiring in FY27 than the 950-plus hired in FY26. A new overhang is the confirmed US H-1B rule of 29 September carrying a $100,000 payment for certain new overseas hires; with fewer than 1% of the workforce on H-1B visas and US visa dependence below 30%, management's three-part response involves core talent, US hiring and nearshore options. The call is likely to cover progress against the FY27 targets of above-peer organic constant-currency revenue growth and the 15% EBIT margin, alongside AI-related revenue contribution and the human-versus-digital labour pricing model being developed with Forrester.
Progress against FY27 targets
Large-deal ramp-up and deal-win run rate
Margin path to 15% EBIT
European auto timing impact and Communications commentary
Headcount, utilization and onsite mix
Management said the deal ramp would not be linear and its FY27 contribution would be below the full 1.6% company-level impact even if fully ramped. It added that it was too early to provide a specific FY27 growth number.
EBIT margin reached 14.4% in Q1 FY27, up from 12.1% in Q2 FY26, against the 15% FY27 ambition management reiterated. Management cited operating and pricing levers behind the goal but flagged wage increases and possible AI-related productivity pressures as considerations.
Management said the 7% YoY decline in IT headcount to 74,689 reflected improved productivity in fixed-price engagements using AI tools and talent redeployment, not revenue decline. The Q1 FY27 summary also stated there were no one-off provision reversals or bad-debt-related provision reversals in SG&A that quarter.
Q1 FY27 revenue of USD 1,660 Mn grew 6.1% YoY reported and 6.6% in constant currency, with INR revenue of Rs. 15,712 crores up 17.7% YoY. Management characterised the quarter as broad-based growth, with year-on-year growth across every vertical.