1. Opening Hook

Another quarter, another IT services concall where “AI” was said more times than “revenue growth.”
But unlike the usual jargon marathon, Tech Mahindra actually brought receipts — fat deal wins, improving margins, and a CEO sounding unusually confident.

Q3 FY26 wasn’t about fireworks in topline growth. It was about control. Costs behaving. Cash flowing. Deals stacking up like Jenga blocks. And management subtly whispering: “FY27, just wait.”

Margins expanded for the ninth straight quarter, cash conversion stayed muscular, and deal wins hit a five-year high. Yet, revenue growth still looks like it’s stuck in economy class while margins upgraded to business.

Read on — because the real story isn’t what grew.
It’s what finally stopped bleeding.

2. At a Glance

• Revenue $1.61 bn – Growth showed up late, but at least it didn’t ghost.
• EBIT margin 13.1% – Ninth straight expansion; cost discipline found religion.
• PAT $125 mn – Up YoY, despite exceptional items crashing the party.
• FCF $194 mn – Cash conversion still flexing harder than earnings.
• Deal wins $1.1 bn – Sales team finally earning their bonuses.
• ROCE 26.9% – Capital is working overtime, unlike some verticals.

3. Management’s Key Commentary

“Our deal wins on an LTM basis are the highest we have achieved in the past five years.”
(Translation: After years of pipeline pain, sales finally remembered how to sell 😏)

“Momentum reflects sustained investments in sales and solution-oriented GTM.”
(Translation: We spent money earlier; now it’s paying rent.)

“AI-led offerings are increasingly relevant for client needs.”
(Translation: AI is no longer a slide — it’s billing.)

“Ninth consecutive quarter of margin expansion.”
(Translation: Cost control is now a habit, not a New Year resolution 💪)

“Strong working capital discipline led to improved cash flows.”
(Translation: DSO behaved. Finance team slept better.)

“We remain on track toward FY27 goals.”
(Translation: Please don’t judge us before FY27 🙏)

4. Numbers Decoded

Margins exclude exceptional items. Labour codes cameoed, then exited.

5. Analyst Questions

• Q: Why BFSI weak QoQ?
  A: Client spending cautious.
  (Translation: Banks are thinking, not