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Tech Mahindra Limited (TECHM) Q2 2027 Earnings Report
IN:TECHM Q2 2027 EPS Results
- Actual EPS
- INR 17.84
- Consensus EPS
- INR 18.56
- Beat/Miss
- Missed by -INR 0.72
- One Year Ago EPS
- INR 13.46
IN:TECHM Q2 2027 Revenue Results
- Actual Revenue
- INR 161.80B
- Expected Revenue
- INR 160.69B
- Beat/Miss
- Beat by +INR 1.11B
- YoY Revenue Growth
- +15.61%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/15/2026
- Time
- Before Open
- Conference Call
- Thursday, October 15, 2026
IN:TECHM Upcoming Earnings
Tech Mahindra Limited's next earnings date is estimated for January 22, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Highlights significantly outweighed the lowlights, with broad-based revenue growth, 12 consecutive quarters of margin expansion, $1.023 billion of quarterly deal wins, strong large-account momentum, expanding AI deployments, and progress toward the 15% full-year EBIT margin target. The main challenges were sequential manufacturing weakness tied to a European automotive program, slower BFSI growth, European auto weakness, some pressure from AI-driven productivity and pricing dynamics, and near-term cash-flow and tax impacts.
Company Guidance
Management reiterated its full year FY 2027 EBIT margin target of 15% and its stance to maintain 90%-100% free cash flow to PAT on a full year basis. It expects normal seasonality, with no unreasonable seasonality or unreasonable furloughs in Q3 or Q4, while a sequential revenue headwind from the European auto program is expected in Q3 “as well, though to a much smaller extent.” For BFSI, management said it “fully expect[s] to get back to” the “upwards of 8%” growth levels of the prior two quarters “in the next quarter.” AI revenue reporting is expected as part of H2 FY 2027 disclosures, and completion of the 20-qubit quantum-computing middleware is expected by December 2026, with commercialization activities expected thereafter.
- Broad-Based Revenue GrowthQ2 revenue was $1.693 billion, up 6.8% year-over-year on a reported basis and 7.2% in constant currency. Revenue increased 2% quarter-over-quarter on a reported basis, 2.4% in constant currency, and organic revenue grew 2.3% quarter-over-quarter and 7% year-over-year in constant currency.
- Strong Operating Margin and Profit GrowthEBIT was $250 million with a 14.8% margin, up 40 basis points quarter-over-quarter and 260 basis points year-over-year, driven by strong volume growth and Project Fortius savings, partially offset by wage hikes. Profit after tax was $166 million, up 23.2% year-over-year, while PAT margin expanded 130 basis points year-over-year to 9.8%.
- Progress Toward Full-Year Margin TargetManagement reiterated that it remains on track to achieve its full-year FY 2027 EBIT margin target of 15%. The company reported its 12th consecutive quarter of margin expansion and stated that it is within 20 basis points of its previously stated margin aspirations.
- Strong Deal Wins and Large-Account MomentumTotal quarterly deal wins were $1.023 billion, while last-twelve-month deal wins reached $4.270 billion, up 34.8% year-over-year. Deal wins were broad-based across verticals and geographies. Revenue from accounts generating more than $20 million grew 3.1% quarter-over-quarter and 11.7% year-over-year, outpacing the rest of the company.
- Communications Growth and PipelineCommunications revenue grew 9.5% year-over-year, supported by the ramp-up of the Orange large deal and new strategic engagements. The business also grew 6% quarter-over-quarter, and management said its pipeline and visibility remain strong, with additional U.K. mainframe modernization and Australian telecom consolidation opportunities expected to scale over the next few quarters.
- Growth Across Key Industry VerticalsManufacturing grew 7% year-over-year; high tech grew 6.7%; retail, travel, and logistics grew 9.2%; and healthcare grew 6.2%. Growth was supported by engineering demand, new deal wins, AI-led efficiency, supply-chain visibility, system consolidation, client wins, and transformation engagements.
- BFSI Expansion and Insurance RecognitionBFSI revenue grew 4.6% year-over-year in the quarterly overview, while management later cited 5.4% constant-currency year-over-year growth for the current quarter. Tech Mahindra remained focused on payments, wealth management, platform modernization, and insurance, and was recognized as a global leader in the ISG Guidewire Services Ecosystem 2026 study for the first time.
- Service-Line GrowthDigital enterprise applications grew almost 13% year-over-year, BPS grew 6.5%, and ADMS grew 7.6%. Management said growth was strong across digital enterprise applications, infrastructure, cloud, security and network services, BPS, engineering services, and package applications.
- TechM Helix Progressing Toward Scaled AI ExecutionTechM Helix investments are translating into strategic engagements across industries and geographies, with many engagements moving beyond pilots toward larger-scale implementation within core business processes. AI engagements were secured across professional services, healthcare, insurance, communications, consumer health, and technology.
- AI Platforms, Assets, and Use Cases ExpandedTechM's portfolio includes more than 200 AI assets. During the quarter, the company completed 25 prioritized industry and horizontal AI use cases and progressed more than 100 additional vertical use cases across communications, financial services, healthcare, manufacturing, retail, energy, insurance, travel, and logistics.
- Customer AI Deployments and Measurable OutcomesA European professional services firm selected Tech Mahindra to embed AI and agentic AI across more than 40 customer-facing platforms and products. A U.S. healthcare technology leader engaged Tech Mahindra for a multi-agent post-market surveillance solution, and an APAC communications and media provider selected the company to embed AI agents across voice and digital interactions, agent assistance, quality, and knowledge management.
- AI Productivity and Delivery ImprovementsThe AWS agentic process transformation center of excellence launched Collections Guru, which is deployed at Target Group and delivers approximately 40% efficiency gain in arrears management. Management also said AI is being embedded across fixed-price and outcome-based programs to improve productivity, optimize delivery effort, improve margins, and scale proven practices.
- Zero Gravity Telco ArchitectureTech Mahindra launched Zero Gravity Telco Architecture to help telecom operators address architectural constraints limiting safe AI-agent deployment and transition toward AI-native operations. A Tier 1 U.K. operator is progressing a proof-of-value trial, two European mobile network operators are evaluating adoption, and a leading Asian operator is deploying pilots. Potential benefits cited include reductions of 50%-80% in time to market, 15%-30% in technical debt, and 25%-50% in architectural costs.
- Consumer Agentic Experience Studio Gaining TractionThe Consumer Agentic Experience Studio has hosted more than 20 customers and multiple partners since launch and began generating business in its first quarter of operations. It also deepened partnerships with Google, SAP, and Blue Yonder across cloud, AI, digital supply chain, and enterprise transformation.
- Expanded Strategic PartnershipsTech Mahindra expanded its multi-year partnership with ServiceNow, announced an AI-driven security service edge offering with Cisco, and established a partnership with SpaceX.AI combining its AI-native platform with Tech Mahindra's domain knowledge, engineering scale, and transformation expertise. The company also cited co-creation activity with Google Cloud, AWS, Microsoft, SAP, ServiceNow, Salesforce, NVIDIA, Dell, Intel, and Qualcomm.
- AI Talent DevelopmentMore than 24,000 associates have been upskilled on AI productivity tools, more than 4,500 have been skilled on agent platforms, and approximately 48,000 hold an AI certification. AI Velocity Cells delivered 16 client-relevant capstones in seven weeks and were operating at full allocation. The company also plans to train 200 engineers in the next quarter on techniques for developing and harnessing smaller domain-contextual models.
- Responsible AI and Commercialization FrameworkTech Mahindra established a dedicated responsible AI practice covering consulting, delivery, and talent enablement, with red teaming, trusted data, traceability, security, and IP provenance embedded throughout the solution life cycle. The company also established an AI revenue framework across three value pools and expects to introduce AI revenue reporting as part of its H2 FY 2027 disclosures.
- New AI and Innovation CentersThe company established the Toronto Innovation Hub for client co-creation and AI innovation and launched the Engineering Experience Center to help organizations move from concept to product commercialization. These investments build on its Manufacturing Experience Center, Communications Experience Center, and Retail CPG Experience Center.
- Industry-Specific AI Model DevelopmentTech Mahindra launched Indus Terra, a 30 billion parameter model built with NVIDIA and AWS as part of the India AI Mission. The company is also investing in AI models designed for specific industries and sovereign requirements, with a focus on business context, data control, and practical and cost-effective deployment.
- Quantum Technology ProgressTech Mahindra partnered with the I-HUB Quantum Technology Foundation to develop middleware for India's indigenous 20-qubit trapped-ion quantum computer, with completion expected by December 2026 and commercialization activities expected thereafter. The company also won first prize at the fifth Quantum Hackathon organized by the National Quantum Computing Center for a quantum network-optimization challenge.
- Cash Generation and Capital ReturnsFree cash flow was $135 million, and management reiterated its target of maintaining 90%-100% free cash flow to PAT on a full-year basis. The board declared an interim dividend of INR 15 per share and reaffirmed its capital allocation policy of returning 85% and above of free cash flow to shareholders.
- Improved Return on CapitalReturn on capital employed was 31.2%, improving 290 basis points sequentially and 680 basis points year-over-year.
- Shareholder Distribution and 40th Anniversary MilestoneThe company celebrated its 40th anniversary, and the board recommended a 1:1 bonus share issue for shareholders. Tech Mahindra was also recognized at the Brandon Hall HCM Excellence Awards and the Stevie Awards for great employers.
- Normal Seasonality ExpectedManagement expects normal seasonality in the second half of FY 2027 and does not expect unreasonable seasonality or unreasonable furloughs in Q3 or Q4.
IN:TECHM Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 22, 2027 | 2027 (Q3) | 20.83- | 12.64 | ― | ― |
| Oct 15, 2026 | 2027 (Q2) | 18.5617.84 | 13.46 | 32.54% (+4.38) | |
| Jul 16, 2026 | 2027 (Q1) | 17.4716.50 | 12.86 | 28.30% (+3.64) | |
| Apr 22, 2026 | 2026 (Q4) | 17.1715.20 | 13.15 | 15.59% (+2.05) | |
| Jan 16, 2026 | 2026 (Q3) | 15.5412.64 | 11.08 | 14.08% (+1.56) | |
| Oct 14, 2025 | 2026 (Q2) | 14.3313.46 | 14.1 | -4.54% (-0.64) | |
| Jul 16, 2025 | 2026 (Q1) | 13.2612.86 | 9.6 | 33.96% (+3.26) | |
| Apr 24, 2025 | 2025 (Q4) | 12.1313.15 | 7.5 | 75.33% (+5.65) | |
| Jan 17, 2025 | 2025 (Q3) | 11.8311.08 | 5.8 | 91.03% (+5.28) | |
| Oct 18, 2024 | 2025 (Q2) | 11.0614.10 | 5.57 | 153.14% (+8.53) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
