Tech Mahindra Is Progressing Towards FY27 Goals: CEO, Mohit Joshi "We have been able to consistently expand our margin every single quarter since we presented our FY27 plans," said Mohit Joshi, CEO and MD, Tech Mahindra

IT firm Tech Mahindra's revenue from operations rose 5.1 per cent year on year (YoY) to INR 13,995 crore in Q2FY26, on the back of strengthened banking, manufacturing, retail, travel, logistics and healthcare verticals. The company believes despite US tariff-related uncertainty and mounting risks from a tightening US visa regime, it is on the right growth trajectory.

"On the margin front, we have been focused on delivering profitable growth and we have been able to consistently expand our margin every single quarter since we presented our FY27 plans," said Mohit Joshi, CEO and MD, Tech Mahindra.

The company is cautious, particularly in the commercial segment, which continues to face headwinds, while the passenger vehicle segment shows some early signs of stabilization.

Tech Mahindra has been recognized by the government of India as a key player in the India AI mission. As part of this mission, the company is partnering to develop an indigenous, sovereign, large-language model with one trillion parameters: A significant technical milestone that places it among the largest AI models under development globally.

Although net profit declined 4.5 per cent standing at INR 1,195 crore for the quarter ended September 30, 2025, the EBIT margin in Q2 stood at 12.1 per cent, which is higher than the estimation made at the beginning of the journey. "This is our testament to bring in operational efficiency, disciplined execution and cost optimization, along with early initial progress in value-based price optimization," he added.

The firm's plunge in net profit this quarter is due to a one-time exceptional gain reported in Q2FY25 on the account of sale of land in the corresponding period. Since there's no similar one-time income this time, the reported profit looks lower, the company said.

"Tech Mahindra is uniquely positioned to offer an integrated value proposition to global enterprises. Our deep technology expertise and digital transformation capabilities are complemented by broader strengths within the Mahindra ecosystem. It is this blend of technological depth and ecosystem advance that truly differentiates Tech Mahindra and positions us as a partner of choice for global organizations," the CEO added.

Sharing insights on the challenges associated with tightening of H1B visa policy changes, he stressed that the company runs a diversified global business. While the U.S. is clearly a key market for the tech giant, it is about 45 per cent of the overall revenues. "We do have a significant non-U.S. exposure as well," the CEO said.

"We have roughly about 150,000 people in the company and about one per cent of these people are on H1Bs. The huge majority of our U.S. workforce is either citizens or people on green cards. So to that degree our dependence on H1s is limited. Any change to this program will have an impact on us despite the fact that our talent exposure on H1s is quite limited. We are working on a comprehensive strategy to ensure that we continue the great work that we've done to build a stronger employer brand name in the U.S," he added.

Total headcount at Tech Mahindra stands at 152,714 currently, down 1,559 YoY.

"We continue hiring where we see opportunities, and in portions of our business where we are seeing growth, we are continuing to add headcount. This is a marginal reduction in the workforce that you've seen this quarter, it's not a meaningful reduction," Joshi added.

As the Indian IT sector navigates headwinds, over the past one year, battling a low point in the industry, the CEO is hopeful of growth in the future. An October 2025 HSBC report forecasts that the Indian IT services sector will grow by a modest 4-5 per cent in the long term, which is slightly above the trendline of the past three years. However, demand is expected to remain weak in the second quarter of FY26 due to continued global economic uncertainty and the deflationary effects of artificial intelligence (AI).