Tech Mahindra Q3 Results: 1.1B Deal Wins Hit 5-Year High; Profit Jumps 14%

Tech Mahindra just dropped its Q3 numbers for the quarter ending December 31, 2025, and as of today, Saturday, January 17, 2026, the stock market is still buzzing.

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The thing is, they just smashed a five-year record with $1.1 billion in new deal wins. Or nothing. Let’s be real, the headline is the massive “mega-deal” with a European telecom giant—one of the biggest in the company’s history. Those too. While the big Tier-I guys like TCS and Infosys are struggling to find growth, TechM is basically doing a victory lap. And here’s the kicker—the stock jumped over 5% yesterday just in anticipation of these results.

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The “Turnaround” Log: Field Notes

It’s an ongoing situation where CEO Mohit Joshi’s “Project Fortius” is actually starting to look like a masterstroke.

• The Revenue Engine: Revenue from operations hit ₹14,393 crore, up 8.3% year-on-year. The thing is, the communications vertical—their bread and butter—is finally breathing again after a long slump, growing nearly 5% YoY.

• The “Labor Code” Punch: It wasn’t all sunshine. TechM took a massive ₹272 crore one-time hit because of the new government labor codes that kicked in last November. And then there’s the ₹2,724 crore sequential profit dip if you include all the labor-related adjustments for gratuity and leave. The thing is, even after that, their consolidated net profit rose 14% YoY to ₹1,122 crore.

• The European Surge: Europe is officially the comeback kid. The thing is, revenue from the region grew over 11% YoY. Those too. It seems like the “European telco” deal is already putting fuel in the tank.

• The AI Play: Satya Nadella actually gave them a shout-out last month for their AI framework. The thing is, Joshi is pivoting the whole company toward “AI-led operational efficiencies.” It’s an ongoing situation where AI isn’t just a buzzword anymore; it’s the core of their $1.1B order book.

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Tech Mahindra Q3 FY26: The Scorecard

And Here’s the Kicker…

TechM is now predicting they will outpace the peer average by the end of FY27. The thing is, the target is a 15% EBIT margin, and they’re currently at 13.1%. Or nothing. Those too. If they keep winning $1B deals every quarter, that 15% might actually be a conservative goal.

It’s an messy transition though. The thing is, while deal wins are up, the total headcount is still dropping as they swap out “traditional” roles for AI-skilled talent. It’s an ongoing situation where the “old” IT model is dying, and TechM is trying to be the first one to the finish line of the “new” one.

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End…

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