TMTech Mahindra532755Earnings call transcript

Q2 FY27 earnings call: 1:1 bonus recommended, revenue US$1.693 billion, operating margin 14.8%

Tech Mahindra has shared the transcript of its Q2 FY27 earnings conference call (quarter ended 30 September 2026).

By ScoutQuest · Wed 21 Oct 2026, 9:01 PM IST · 2 min read

Revenue

US$1.693 billion, up 6.8% year-on-year reported, 7.2% in constant currency

Operating Margin

14.8%

Bonus Issue Ratio

1:1

Bonus share issue comes with the quarterly numbers

• The Board of Directors has recommended a bonus share issue in the ratio of 1:1 for shareholders.
• The call also marked the company's 40th anniversary milestone, which management flagged as the context for the announcement.

Quarterly performance

• Revenue was US$1.693 billion, up 6.8% year-on-year on a reported basis and 7.2% in constant currency.
• Operating margin for the quarter stood at 14.8%.
• Management attributed the growth to positive momentum across verticals and the ramp-up of large deals.

Vertical growth (year-on-year)

• Communications: 9.5%, helped by the ramp-up of the Orange large deal and new strategic engagements.
• Retail, Travel and Logistics: 9.2%, helped by new client wins and ramp-up of consolidation and transformation work in the Americas.
• BFSI: 4.6%, with focus on payments, wealth management, platform modernisation and insurance.
• Manufacturing, Hi-Tech and Healthcare also grew, with aerospace, new deal wins and AI-led product engineering cited as drivers.

What management said about AI

• TechM Helix, the company's AI initiative, is seeing investments translate into engagements that are moving beyond pilots towards larger-scale implementation inside core business processes.
• A European professional services firm selected the company to embed AI and agentic AI across its customer-facing platforms and products, displacing a longstanding incumbent.
• A US healthcare technology leader engaged the company for a multi-agent AI solution across its post-market surveillance complaints lifecycle.
• An APAC communication and media provider selected the company to transform customer experience operations using AI agents.
• With AWS, an Agentic Process Transformation Center of Excellence was launched, with its first solution already deployed at Target Group.

Zero-Gravity Telco Architecture

• Launched this quarter as a framework to help telecom operators move to AI-native operations.
• A Tier 1 UK operator is progressing a proof of value trial, two European mobile network operators are evaluating adoption, and a leading Asian operator is deploying pilots.

Partnerships mentioned

• An expanded multiyear partnership with ServiceNow to help enterprises move from AI pilots to production-scale deployments.
• An AI-driven Security Service Edge offering with Cisco.
• A partnership with SpaceX.ai combining its AI-native platform with Tech Mahindra's domain and engineering capabilities.
• A newly launched Consumer Agentic Experience Studio, which has also deepened partnerships with Google, SAP and Blue Yonder.

How to read this

• The transcript captures revenue growth, a double-digit operating margin and a segment-wise growth picture, plus a Board recommendation of a bonus issue in the ratio 1:1.
• The AI commentary describes client engagements, trials, pilots and partnerships rather than committed revenue.
• The direction management points to is AI-led transformation work, larger deals and deeper partnerships; the specifics of these engagements are as stated in the transcript.

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