Tech Mahindra Tops Nifty; Turns Volume Buzzer, Surges Nearly 4% After Strong Q3FY26 Results

Shares of Indian IT major Tech Mahindra Ltd. surged nearly 4% on Monday following an “all-around beat” in its third-quarter earnings for the current financial year (Q3FY26), supported by strong deal wins and steady revenue growth.

During intraday trade, Tech Mahindra share price rose as much as 3.92% to ₹1,736 per share, later trimming slightly to trade 3.4% higher at ₹1,727, outperforming the benchmarkNifty 50 index as of 3:06 PM. The stock marked its second consecutive session of gains and was trading at 5.3 times its average 30-day volume, according to NSE. Tech Mahindra’s shares have risen 8.6% year-to-date, compared with a 2.08% decline in the Nifty 50, giving the company a total market capitalization of ₹1.7 trillion.

Tech Mahindra Q3 Results

Tech Mahindra reported strong financial results for the third quarter ended December 31, 2025, supported by steady revenue growth, margin expansion and record deal wins. Revenue for the quarter stood at ₹14,393 crore, registering an 8.3% YoY increase and a 2.8% QoQ rise, underscoring continued demand across key verticals.

EBIT also showed a strong performance at ₹1,892 crore, up 40.1% YoY, with margins improving to 13.1%, marking the ninth straight quarter of margin expansion, driven by operational efficiencies and disciplined cost management.

Tech Mahindra’s Profit After Tax (PAT) came in at ₹1,122 crore, reflecting a 14.1% YoY increase, while operational PAT surged 34.9% YoY, indicating strengthening core profitability. The company also generated USD 194 million in free cash flow during the quarter, and reported diluted EPS of ₹12.64, further reinforcing its improved financial performance.

Strong New Deal Wins

New deal wins were particularly strong, totaling USD 1,096 million, up 47% YoY and 34% QoQ, reflecting an improved deal-win run rate over the past several quarters. Key engagements included modernisation projects for a leading European telecom provider, digital transformation and system integration initiatives for US-based communications and healthcare companies, strategic engineering support for a European aerospace manufacturer, and modernization of enterprise banking platforms for a US financial institution.

Strengthening AI & Digital Capabilities

Tech Mahindra also strengthened its AI and digital capabilities through strategic partnerships. The company partnered with Google to accelerate adoption of Gemini Enterprise AI models, achieved AWS Generative AI Competency, and launched i.GreenFinance, a sustainable lending platform. It signed MoUs with the University of Texas at Dallas, Strangeworks, and DFKI Germany to drive AI, quantum computing, and smart factory solutions, and partnered with Arviem to enhance IoT-based supply chain visibility.

CEO Mohit Joshi highlighted that the record deal wins demonstrate sustained investment in sales, solution-oriented strategies, and growing relevance of AI-led offerings, laying a strong foundation for long-term value creation. 

CFO Rohit Anand emphasised disciplined working capital management, improved cash flows, and continued margin expansion, reinforcing confidence in the company’s progress toward its FY27 goals.

Conclusion

Tech Mahindra’s Q3FY26 performance reflects a robust combination of revenue growth, margin expansion, and significant deal wins, signaling steady execution in its turnaround strategy. With the company maintaining its trajectory toward higher margins and above-peer growth, investor confidence remains strong despite short-term impacts from regulatory changes such as the new labour codes.