In a resilient display amid a challenging global environment for tech spending, IT services major Tech Mahindra announced robust financial results for the second quarter, with revenue crossing the ₹13,995 crore mark.[1][2][3] The company demonstrated significant commercial momentum by securing new deals worth $816 million, underscoring broad-based growth across key industries.[3][4] While consolidated net profit saw a year-over-year decline of around 4.4% to approximately ₹1,195 crore, the firm continued its disciplined operational execution, marking its eighth consecutive quarter of margin improvement.[1][3][5] This performance highlights a steady hand in navigating economic uncertainties and a strategic focus on high-value services, particularly in the rapidly evolving field of artificial intelligence, which is becoming a cornerstone of the company's growth narrative.

The company's top-line growth was a notable achievement, rising 5.12% year-over-year and 4.8% sequentially to ₹13,995 crore.[1][2][6][7] This revenue performance, which met or exceeded analyst expectations, was attributed to strength in several key verticals, including manufacturing, banking and financial services (BFSI), retail, travel, logistics, and healthcare.[3][4][7] The consistent revenue stream from its largest clients provided a stable foundation, with the top 20 million-dollar-plus revenue client bucket contributing over $1 billion during the quarter.[3] Despite the overall positive revenue picture, the company did face headwinds in some areas. Revenue from the Americas, its largest market, experienced a slight decline, and the communications vertical, historically a stronghold, also saw a dip.[4] The new deal wins, totaling $816 million, represent a significant 57% increase over the past twelve months on a last twelve months (LTM) basis, signaling a healthy pipeline and strong client demand for its services.[3][5] These wins were distributed across major sectors, reinforcing the company's diversified market approach.[3]

A key highlight of the quarter was the continued expansion of the company's EBIT margin, which reached 12.1%.[1][2][3] This achievement marks the eighth straight quarter of margin improvement, a testament to the success of its internal cost optimization and operational efficiency program, Project Fortius.[3][8] This initiative, launched to streamline operations and enhance productivity, has been instrumental in driving profitability even as the broader industry faces pricing pressures.[9][8] The margin enhancement reflects a disciplined approach to cost management, including rationalizing general and administrative expenses and optimizing the offshore mix.[9] Company leadership has reaffirmed its commitment to achieving a 15% EBIT margin by the fiscal year 2027, expressing confidence that continued operational discipline and productivity measures will sustain this upward trajectory.[8][10] However, the company's total headcount saw a decline, and the attrition rate for its IT segment stood at 12.1% on a trailing twelve-month basis, metrics that are being closely watched in the competitive talent market.[1][7]

Strategically, Tech Mahindra is placing a significant bet on artificial intelligence to fuel future growth and differentiate itself in the marketplace. The company's "AI Delivered Right" strategy is designed to help clients move from conceptual proofs of concept to scalable, production-level AI deployments that deliver tangible business value.[9][11] A major development in this area is the launch of TechM Orion, a next-generation AI platform, and an accompanying AI marketplace intended to help enterprises accelerate their adoption of intelligent, autonomous workflows.[3][5] The company is also involved in high-profile national initiatives, such as a partnership to develop an indigenous, sovereign large language model with 1 trillion parameters.[3] Furthermore, strategic collaborations, such as an expanded partnership with Google Cloud, are aimed at combining Tech Mahindra's industry expertise with powerful AI capabilities, including Google's Gemini models, to create sector-specific solutions.[12] These initiatives underscore a clear focus on embedding AI into the core of its service offerings, aiming to enhance productivity, foster innovation, and ensure governance and trust in AI deployments.[11]

In conclusion, Tech Mahindra's second-quarter performance paints a picture of a company successfully navigating a complex market through disciplined execution and strategic foresight. The consistent revenue growth, strong deal closures, and particularly the sustained margin improvement demonstrate operational strength and resilience. While challenges in specific markets and a decline in net profit year-over-year warrant attention, the robust pipeline and significant investments in artificial intelligence position the company to capitalize on the next wave of technological transformation. The firm's ability to turn its foundational strengths and strategic AI initiatives into decisive market advantages will be critical as it continues to pursue its long-term growth and profitability targets in an increasingly competitive IT landscape.