Tech Mahindra Q3 Results FY26: PAT down 6.1%, Check revenue, headcount, attrition and other key details

Tech Mahindra Q3 Results FY 2026: Tech Mahindra on Friday reported its December quarter results, showing an improvement in operating performance even as profit after tax declined sequentially.

Revenue from operations rose to Rs 143,932 crore in Q3, compared with Rs 139,949 crore in the September quarter. Total income also increased to Rs 143,715 crore from Rs 140,349 crore on a quarter-on-quarter basis.

Profit after tax came in at Rs 11,220 crore, lower than Rs 11,945 crore in the previous quarter, reflecting higher costs during the period.

Earnings before interest and tax (EBIT) rose 11.3 per cent quarter-on-quarter to Rs 1,892 crore, up from Rs 1,699 crore in Q2. Operating margin improved to 13.1 per cent from 12.1 per cent, indicating better cost control and execution.

The company said its Q3 performance was impacted by a one-time charge related to the implementation of new labour codes. Tech Mahindra noted that the labour codes had a negative impact of Rs 272 crore during the December quarter.

The company’s focus on margin expansion and operational efficiency remained intact, even as near-term profitability faced pressure from regulatory and cost-related factors.

Tech Mahindra’s total headcount stood at 149,616 at the end of the quarter, down by 872 employees year-on-year. LTM IT attrition was at 12.3 per cent. Days of sales outstanding improved to 90 days, indicating tighter working capital management.

Cash and cash equivalents at the end of December 2025 stood at Rs 7,666 crore, highlighting continued strength in cash flows.

Rohit Anand, chief financial officer of Tech Mahindra, said the quarter reflected a well-rounded financial performance. He noted that a sustained focus on working capital discipline helped improve cash flows and DSO through consistent execution. Anand added that the company remains on track to meet its FY27 goals.