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What changed at Tech Mahindra?
Tech Mahindra began a three-year transformation plan in April 2024, shortly after Mohit Joshi took over as CEO and managing director. The plan gave the company explicit FY27 goals: a 15% EBIT margin, revenue growth ahead of peers, return on capital employed (ROCE) above 30%, and returning more than 85% of free cash flow to investors. The company describes the effort as a push to accelerate growth, improve margins and strengthen its market position. Its FY26 annual-report page says the company recorded 10 consecutive quarters of margin expansion.
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The “fastest-growing” description needs a time frame and a peer set. For Q1 FY27, Business Today reported that Tech Mahindra’s constant-currency revenue grew 2.6% quarter on quarter, ahead of the large peers it compared. The company’s 6.6% year-on-year growth also exceeded TCS’s 3.2% in that comparison. Business Today cautioned that the year-on-year result may reflect a low comparison base. Those figures do not establish that Tech Mahindra outgrew every Indian IT services company, or that it led peers throughout the turnaround.
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Earlier data paint a more mixed picture. Mint’s comparison for 1 April 2024 to 30 September 2025 put Tech Mahindra’s quarterly compounded revenue growth at 0.41%, behind Infosys at 1.8% and HCL Technologies at 1%. Its margin performance, however, was stronger: Mint reported about 470 basis points of expansion to 12.1% through its November 2025 comparison, describing it as the fastest margin growth among the five large IT firms it assessed. The different findings reflect different periods and measures, not necessarily a contradiction.
Who is Mohit Joshi?
Joshi joined Tech Mahindra in 2023 and succeeded C.P. Gurnani, who had led the company for 15 years. Before moving to Tech Mahindra, Joshi was president at Infosys, led its Mexico business as CEO and chaired EdgeVerve. Tech Mahindra’s biography of Joshi says he has more than two decades of experience in enterprise technology software and consulting and holds an MBA from the Faculty of Management Studies at Delhi University.
Joshi has said that setting measurable goals was central to focusing the organisation. In an interview with Business Today, he put it this way: “I think the single best thing that we did was articulating a very clear sense of what we would do in three years, backed by numbers.” The targets made progress easier to assess, but they remain targets until results establish that they have been met.
What has Tech Mahindra achieved against its FY27 plan?
The company’s FY26 results and Q1 FY27 update show substantial margin improvement, alongside a more recent pickup in revenue growth. The figures below are company-reported unless otherwise noted; quarterly constant-currency growth is not the same as full-year reported-currency growth.
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| Measure | Reported result or target | Period and context |
|---|---|---|
| EBIT margin | 12.6%; up about 290 basis points year on year | FY26, Tech Mahindra annual-report page |
| EBIT margin | 14.4% | Q1 FY27, as reported by CEO Mohit Joshi on the earnings call |
| EBIT margin target | 15% | FY27 target |
| Revenue | $1.66 billion; 6.6% year-on-year growth in constant currency | Q1 FY27, as reported by Joshi on the earnings call |
| Revenue growth target | Growth ahead of peers | FY27 target; the annual-report page does not give a numerical growth rate |
| ROCE target | Above 30% | FY27 target |
| Free cash flow | $616 million, equal to 115% of profit after tax | FY26, company-reported |
| Free cash flow returned as dividends | 91% | FY26, company-reported; the FY27 plan sets a target of returning more than 85% of free cash flow to investors |
| Deal wins | $3.794 billion, described by the company as its highest in five years | FY26 |
Joshi’s Q1 FY27 earnings-call account described the first year of the programme as laying the foundations for margin expansion and the final year as the period intended to deliver growth ahead of peers. Atul Soneja, Tech Mahindra’s chief operating officer, likewise characterised the first-quarter results as reflecting “the turnaround and stabilisation” achieved through investments in growth and an operational mindset. These are management explanations of the plan and results; they do not establish that any one initiative caused the change.
How did management try to improve performance?
Business Today describes the turnaround around growth, operations and organisation. The operating changes it reports include improving employee utilisation, revisiting pricing, using technology to increase productivity and control costs, and declining deals management considered economically unattractive. The company also shifted emphasis toward organic growth and developing existing accounts rather than acquisition-led expansion.
Focus the business and customer mix
Management sought to reduce dependence on telecom and grow work in banking, financial services and insurance (BFSI), manufacturing, healthcare and retail. The company’s FY26 annual-report page also highlights Communications and Manufacturing, along with BFSI and other growth areas. Its reported FY26 commercial measures include 182 new clients and deeper relationships with 29 clients generating more than $50 million each.
Use deals, technology and AI to support growth and margins
The annual-report page points to disciplined execution of large deals, deeper client relationships, differentiated AI-led capabilities, and AI and automation for productivity and margins. Business Today also reports a focused vertical and customer strategy, a reset of talent strategy and a roadmap to use Mahindra Group synergies. These describe the company’s chosen levers; reported progress alone does not isolate the effect of each one.
What does “fastest-growing” mean in the Q1 FY27 comparison?
Business Today’s Q1 FY27 peer comparison reported the following quarter-on-quarter constant-currency revenue growth rates. This is a specific comparison of named large firms for one quarter, not a ranking of all Indian IT services companies or a full-year growth table.
| Company | Q1 FY27 quarter-on-quarter constant-currency growth |
|---|---|
| Tech Mahindra | 2.6% |
| TCS | 0.4% |
| Infosys | 1% |
| HCL Technologies | -0.5% |
| Wipro | -1.2% |
For year-on-year constant-currency growth in the same quarter, Business Today reported 6.6% for Tech Mahindra and 3.2% for TCS. It specifically noted the possibility of a low baseline for Tech Mahindra’s growth. Quarter-on-quarter and year-on-year rates answer different questions, and constant-currency figures should not be confused with growth translated at prevailing exchange rates.
What remains unproven, and what should investors watch?
Nearness to the 15% margin target is not completion of the turnaround. Tech Mahindra still needs to demonstrate that revenue growth is ahead of peers under a clearly defined comparison, meet its ROCE goal, and sustain capital returns. The annual-report page also frames above-peer growth beyond FY27 as an aspiration, not an achieved outcome.
- Growth across more than one quarter: check whether the company continues to grow faster than a stated peer set, while noting the reporting period, constant-currency basis and comparison base.
- Margin protection as revenue expands: large-deal ramp-ups and onsite intensity can affect margins, as highlighted in Business Today’s account of the risks.
- Demand beyond traditional services: the same profile identifies pressure on traditional IT services from AI and the need to move toward newly forming service demand.
- Organic growth and client expansion: track whether the company’s focus on existing accounts and new clients produces durable revenue, alongside deal wins and sector mix.
- Targets versus outcomes: assess the 15% EBIT margin, above-peer growth, ROCE above 30% and free-cash-flow return goals separately; achievement of one does not prove achievement of the others.
Everest Group CEO Jimit Arora told Business Today that the next phase would require sustained execution to maintain growth while protecting margin gains. That is the core test of the turnaround: whether the recent growth can persist without reversing the operational improvement that brought margins close to the FY27 goal.
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