Tech Mahindra’s performance turnaround under CEO and Managing Director Mohit Joshi is gathering pace, with the IT services company moving closer to its ambitious FY27 targets.

When Joshi took charge in 2023, Tech Mahindra had set a three-year plan to outperform its Indian IT services peers and increase its EBIT margin to 15% by FY27. The target represented a significant improvement from the 6% margin reported at the end of March 2024.

The strategy initially faced scepticism, particularly as Joshi had taken over from C.P. Gurnani, who had led the company for 15 years.

More than two years into the plan, the company’s latest numbers indicate substantial progress. In the first quarter of FY27, Tech Mahindra reported revenue of $1.66 billion, while its EBIT margin reached 14.4%.

The margin figure puts the company close to its 15% target, highlighting the progress made in improving profitability alongside efforts to expand the business.

The challenge for Joshi has been to improve operational performance while continuing to generate growth in a difficult global environment for IT services. The industry has faced pressure from changing technology demand, cautious client spending and uncertainty around the pace of enterprise technology investments.

Tech Mahindra’s progress therefore marks an important phase in its transformation strategy as it approaches the final year of its three-year plan.