Tech Mahindra recorded a net profit of Rs 1,167 crore for the fourth quarter of FY25 (January–March), reflecting a 76.5% increase compared to Rs 661 crore in Q4 FY24 and 19% growth from the last quarter.

For the quarter, the firm reported a revenue of $1.549 billion, slightly down from $1.567 billion in the previous quarter. On a sequential basis, this represents a 1.2% decline QoQ. 

However, the revenue remained flat year-over-year, with a marginal 0.3% growth on a constant currency basis. 

Rohit Anand, CFO of Tech Mahindra highlighted that the revenue decline was primarily driven by a delay in closing the renewal from a high-tech customer, which is expected to recover in the coming months. “We anticipate a recovery as these delays in customer renewals will be resolved soon,” he noted.

In INR terms, the revenue stood at ₹13,384 crores in Q4 FY25, reflecting a 0.7% sequential growth from ₹13,285 crores in Q3.

Notably, deal wins for the quarter totalled $798 million, reflecting strong year-over-year growth —a key indicator of the company’s ability to secure large, strategic deals. While the company faced challenges in certain sectors, the robust deal pipeline and growth in key verticals like BFSI offer confidence for the future.

Tech Mahindra reported a significant increase in deal wins, securing a total contract value (TCV) of $2.7 billion for FY25, representing a 42.5% year-on-year growth. Notable wins included large deals with a US-based telecom provider and a global leader in enterprise applications.

“We are not taking on speculative deal risks but focusing on healthy, long-term engagements that create value for both our clients and Tech Mahindra,” Joshi added. 

The company also expanded strategic partnerships with major industry players, including NVIDIA, Google Cloud, and Qualcomm, to enhance its AI and digital transformation capabilities.

A major highlight of the quarter was the announcement of Tech Mahindra’s new service line, TechM Consulting. Joshi emphasised the company’s intention to position itself as a trusted advisor to clients, leveraging its experienced workforce in a highly competitive landscape. 

Total headcount of the firm was 148,731, down 1,757 QoQ, up 3,276 YoY with an attrition rate of 11.8%.

AI is Part of All Deals

Speaking on Tech Mahindra’s generative AI strategy, Joshi shared that the company is formally unveiling its GenAI narrative later, but emphasised that their approach centres on “AI delivered right.” 

This guiding principle, he said, reflects the company’s focus on leveraging GenAI to drive productivity, transformation, and innovation for clients, all while ensuring robust security. 

Similar to its peers, like TCS, Infosys, HCLTech, and Wipro, Tech Mahindra claims to have integrated it into its core offerings. “AI is now woven into the fabric of our data and engineering service lines,” he said. “It’s not siloed anymore. The vast majority of our clients are already leveraging some form of our AI offerings.”

Addressing a question on Tech Mahindra’s involvement in foundation models and IndiaAI Mission, Joshi highlighted the company’s role in shaping sovereign AI capabilities through Project Indus, its LLM for Indic languages.

“Indus was a critical capability demonstrator for us,” Joshi said, emphasising the gap in AI models that effectively support Hindi and other Indian languages. “There was a huge need for a model that catered to our linguistic diversity, and the ecosystem has responded very positively.”

“Our AI team, including Kunal and Nikhil [Malhotra], remains deeply engaged with the India AI Mission, and we’re fully aligned with the goal of building world-class, sovereign AI capabilities,” he said.

Joshi also reiterated that as AI becomes interwoven into enterprise technology, contributing to foundational AI infrastructure—whether in India or abroad—will remain a core focus for Tech Mahindra.

On a separate note, he confirmed that the company’s wage hikes, announced in January, have already been rolled out. “We’ve now shifted our wage hike cycle to January, and the increases have been fully implemented,” he noted.

As Tech Mahindra enters FY26, Joshi expressed confidence in the company’s strategic direction despite global economic uncertainties. “The foundational work we have done over the last year, along with our focus on execution and resilience, positions us well to navigate the challenges ahead,” he added.

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