Tech Mahindra Eyes Above-Industry Growth, Turnaround Gains Momentum

• Tech Mahindra is confident of growing faster than the industry average (3-5%) and improving margins under MD and CEO Mohit Joshi.
• The company reported its strongest quarter in nearly three years with 1.7% sequential revenue growth, record large deal wins, and ninth straight quarter of margin expansion.
• Management attributes the strong performance to the turnaround plan announced in 2024, which is firmly on track.
• Tech Mahindra aims for a 15% operating margin by FY27 under its Fortius plan, having already improved from 6.4% to over 13%.
• The company plans to achieve margin expansion through increased pricing, a shift to higher-margin offerings, and improved productivity in its fixed-price portfolio, leveraging AI.

Why It Matters: Tech Mahindra is on a strong turnaround path, aiming for above-industry growth and 15% operating margins by FY27.