Profit before exceptional items and tax (PBET) jumped 37% to Rs 1,777.5 crore in Q2 FY26, compared with Rs 1297.4 crore posted in Q2 FY26. Exceptional items includes impact of labour code changes stood at Rs 272.4 crore in Q3 FY26.

EBIT stood at Rs 1,892 crore in the quarter ended 31st December 2025, up 11.3% QoQ and up 40.1% YoY.

In dollar terms, the company's revenue recorded of $1,610 million (up 1.5% QoQ). In constant currency terms, revenue increased 1.7% QoQ.

During the quarter, EBIT was at $211 million, up 10.0% QoQ and up 32.8% YoY. EBIT margin came in at 13.1% in Q3 FY26, up 100 bps QoQ and 290 bps YoY.

IT Headcount stood at 76,194 in Q3 FY26, down by 4,671 YoY. IT LTM attrition was at 12.3% in Q3 FY26 as against 12.8% in Q2 FY26.

Cash and cash equivalent stood at Rs 7,666 crore in the quarter ended 31st December 2025.

Mohit Joshi, CEO and managing director (MD), Tech Mahindra, said, 'Our deal wins on an LTM basis are the highest we have achieved in the past five years, reflecting an improved deal-win run-rate over the past several quarters. The momentum is a testament to our sustained investments in sales, solution-oriented go-to-market approach and the growing relevance of our AI-led offerings in addressing client needs. Together, these efforts are laying a strong foundation for long-term value creation'

Rohit Anand, chief financial officer (CFO), Tech Mahindra, said, 'This quarter reflects a well-rounded financial performance, marked by ninth consecutive quarter of margin expansion and continued strength in cash generation. A sustained focus on working capital discipline has led to improved cash flows and a meaningful improvement in DSO, driven by consistent execution. We remain on track in our progress toward our FY27 goals'

Meanwhile, the company announced additional investment of Rs 37.5 lakh in New Democratic Electoral Trust (NDET), a Section 8 company. As a result, the company's shareholding in NDET will increase from 19.83% to 49.35% of its equity share capital. Upon completion of the transaction, NDET will be classified as an Associate of the company.

Tech Mahindra offers technology consulting and digital solutions to global enterprises across industries, driving transformation at scale and speed. It provides a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, AI & analytics, and cloud & infrastructure services.

The scrip jumped 5.17% to settle at Rs 1,670.55 on the BSE.

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