28 Integrated Annual Report 2025-26 Tech Mahindra Tech Mahindra (Tech Mahindra Limited or TechM) is a global consulting service and system integrator with a transformation footprint across a wide range of industries. It is a preferred technology provider for clients and partners due to its ability to integrate diverse competencies with next-generation technologies across multiple service lines. In April 2024, TechM unveiled a structured three‐year transformation plan aimed at accelerating growth, improving margins, and strengthening its market position. Two years into execution, the plan is delivering steady and measurable progress. This is reflected in ten consecutive quarters of margin expansion, a five‐year high in quarterly deal wins, and consistent progress towards achieving revenue growth above the peer average. This progress has been driven by disciplined large deals execution, deeper client relationships, and differentiated AI-led capabilities. By the end of FY27, TechM targets revenue growth ahead of the peer average, an EBIT margin of 15%, ROCE exceeding 30%, and maintaining capital returns to shareholders at over 85% of FCF. Growth Vectors • Growth Strategy – Topline Acceleration The focus is on building a balanced and future-ready portfolio across industries, services, and markets. TechM has strengthened its core verticals of Communications, Manufacturing and BFSI, while expanding into high-growth areas through new client wins and differentiated offerings. This is driven by a focused go-to-market approach, disciplined large deals scale-up, and deepening relationships with top clients using targeted programmes like Turbocharge. • Operations Strategy – Margin Improvement & Delivery Excellence TechM is leveraging AI and automation to enhance productivity and margins, supported by disciplined execution. A focus on high‐margin service lines and robust capabilities unlock margin performance and improved delivery outcomes. • Organisation Strategy TechM leverages partnerships within the Mahindra Group to drive co-creation and unlock expansion opportunities. It continues to invest in strengthening the talent pipeline and leadership capabilities, while fostering a people-first culture. A refreshed brand positioning, an integrated marketing engine, and robust ESG practices further support these efforts to enable enhanced differentiation and sustainable growth. Beyond FY27, TechM aspires to leverage this turnaround and deliver profitable and sustainable growth that consistently exceeds the peer average. Key Highlights • TechM added 182 clients during the year and deepened client relationships with 29 clients in the $50+ million bracket. • Achieved the highest Net Promoter Score (NPS) in industry, marking a turnaround from the near-median NPS two years ago. • TechM unveiled a brand refresh during the year, presenting a unified identity across all its portfolio companies. • The business returned 91% of FCF as dividends to shareholders in FY26. FY26 Achievements $3,794 million Highest ever deal wins in the last five years 12.6% EBIT margins with expansion of ~290 bps YoY $616 million Free cash flow (115% FCF to PAT)
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