Tech Mahindra has made significant progress on its three-year transformation plan under CEO and Managing Director Mohit Joshi, moving closer to its ambitious profitability target despite a challenging global IT services environment.
When Joshi took charge in 2024, the company aimed to outperform its Indian IT services peers while increasing EBIT margins to 15% by FY27, compared with 6% at the end of March 2024.
Two years into the plan, the company has moved considerably closer to that goal. In Q1 FY27, Tech Mahindra reported revenue of $1.66 billion, while EBIT margins reached 14.4%.
Joshi succeeded C.P. Gurnani, who had led the company for around 15 years. His mandate involved improving profitability while maintaining growth at a time when the global IT industry was facing subdued demand and changing technology priorities.
The improvement in margins indicates the company has made substantial progress in its operational transformation. Reaching the 15% target, however, remains dependent on how revenue growth, demand conditions and cost efficiency develop through the remainder of FY27.
