TECH MAHINDRA — THE TURNAROUND IS GAINING SPEED 💻🚀

For years, Tech Mahindra was the laggard of Indian IT. Now the gap is closing — and that's where the opportunity begins.** The transformation is visible in the numbers. Q1 FY27 revenue jumped 17.7% YoY to ₹15,712 crore, while EBIT surged 53.3% to ₹2,264 crore. EBIT margin expanded to 14.4%, up a massive 330 bps YoY. PAT climbed 28.4% to ₹1,465 crore. But the biggest signal may be sitting in the order book. Tech Mahindra delivered $1.08 billion of new deal wins in Q1, up 33.3% YoY, keeping quarterly TCV above $1 billion for the third consecutive quarter. And FY26 had already established the trend: $3.79 billion annual deal wins — up 41.6%. At the same time, FY26 EBIT margin improved 290 bps to 12.6%, while free cash flow reached $616 million. That's the turnaround equation: Cost optimisation → Better utilisation → Higher margins → Stronger cash flows → More capacity to invest → Better growth. But Tech Mahindra isn't simply cutting costs. The company is repositioning around AI, cloud, digital engineering, telecom transformation and enterprise technology, while its telecom heritage gives it a strong position in one of the world's biggest communications markets. And now the operating leverage is becoming visible. Revenue ↑ Deal wins ↑ Margins ↑ EBIT ↑↑ Cash generation ↑ That's exactly the combination a turnaround investor wants. The risks remain: global IT spending can slow, telecom remains cyclical, competition from TCS, Infosys, HCLTech and Wipro is intense, and TechM still needs sustained revenue growth to justify a premium valuation. But the direction has changed. FY26 proved margins can recover. Q1 FY27 showed the recovery can accelerate. The next test is whether growth can compound alongside it. The market once saw Tech Mahindra as an IT laggard. The bull case is that it becomes an IT turnaround story. Better growth + higher margins + strong deal wins = a very different Tech Mahindra. Bullish for the long term.