Tech Mahindra Ltd Management Discussions

About tech mahindra

Tech mahindra (nse: techm) is a global consulting service and system integrator that partners with enterprises across industries to enable transformative scale at unparalleled speed. We specialize in digital transformation and business re-engineering, helping enterprises scale at speed™ and achieve competitive dominance in a rapidly evolving digital economy. With 147,000+ professionals across 90 countries, tech mahindra provides a fuh spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, ai & analytics, and cloud & infrastructure services. It is the first indian company in the world to have been awarded the sustainable markets initiatives terra carta seal, which recognizes global companies that are actively leading the charge to create a climate and nature-positive future. Tech mahindra is part of the mahindra group, founded in 1945, one of the largest and most admired multinational federation of companies.

Industry overview:

Fy26 was a year in which the it services industry saw enterprises refining their technology priorities. Global economic conditions remained volatile, and while long term digital priorities stayed intact, enterprises were more focused in balancing cost discipline with transformation goals and realise measurable value from new investments.

Enterprise engagement with it service providers during the year reflected this change. Clients continued to rely on service partners to ensure operational continuity and the stability of core systems, while also seeking improvements in efficiency and resilience. Investments in cloud, cybersecurity, and ai enabled automation remained active, though buying decisions were increasingly anchored in productivity outcomes, commercial efficiency, and clarity of execution. As technology landscapes became more interconnected and complex, enterprises showed a stronger preference for integrated service models that offer end to end accountability across advisory, transformation, and operations.

The adoption of generative ai evolved through in fy26. Interest in the potential of genai remained strong; however, enterprises became more selective in identifying use cases, prioritising those with clearer links to operational efficiency, cost optimisation, and scalability. As organisations modernise legacy systems to improve ai readiness, new opportunities are expected to emerge, expanding the addressable market over time even as the near term focus remains centred on productivity gains. Alongside this shift, interest in agentic ai gained momentum, with enterprises beginning to explore agent based workflows for targeted efficiency improvements. During the year, the company continued to support human centred innovation to scale ai adoption for global enterprises. In addition, the company launched techm orion, a next generation agentic ai platform that enables organisations to deploy and manage agent based ai solutions across assisted and autonomous environments while maintaining control and transparency throughout the ai lifecycle. The company was also recognised by the government of india as a key participant in the indian ai mission, acknowledging its role in advancing national ai capabilities and promoting responsible and ethical use of artificial intelligence.

Global capability centres (gccs) also continued to mature during the year. While expansion in scale persisted, a more notable development was the evolution of gcc mandates toward higher value and more integrated roles within global enterprise ecosystems. As gccs assumed greater responsibility across digital, engineering, and operational domains; it services companies remained closely involved as partners, supporting governance frameworks, digital platforms, and operating models that enable secure and scalable growth.

Overall industry sentiment during fy26 reflected cautious optimism. While enterprise intent to invest in technology remained evident, particularly in areas linked to ai led digital initiatives—spending

Decisions were more phased and prioritised. Enterprises directed their investments across foundational, digital, capabilities, cloud native modernisation, cybersecurity, and the continued transformation of business process services, aligning spend more closely with near term business objectives.

Against this backdrop, the operating environment in fy26 was characterised by moderation and selectivity. With macroeconomic uncertainty and spend optimisation priorities, industry outlooks continued to reflect a measured growth trajectory. Reflecting the prevailing macro-economic environment, and assuming a prolonged period of elevated tariffs, various industry advisors, bodies, and research firms continue to adopt a cautious outlook, with growth expectations for fy27 generauy placed in the 2-5% range. Even so, the structural drivers of demand—digital modernisation, cloud adoption, and ai enabled transformation—continue to underpin the medium to long term fundamentals of the it services industry.

• communications: techm continues to

Maintain a strong competitive position across its service offerings, and the companys depth of domain expertise and long standing industry presence positions it well to support customers through technological transitions. The company benefits from long standing relationships with leading telecom operators and ecosystem partners across geographies, supported by its ability to serve clients across the network lifecycle. Its comprehensive capabilities spanning design, deployment, transformation, and managed services have been developed and reinforced over time through sustained in house investments and strategic partnerships.

The company has further enhanced its "right to win" by making our offerings increasingly ai-led. Significant investments have been made to embed ai across services, augment capabilities, and bring in seasoned industry specialists to drive innovation and execution at scale. This has reinforced tech mahindras ability to deliver differentiated, outcome- driven solutions. This combination of scale,

Domain knowledge, and an integrated service portfolio enables tech mahindra to continue to play a meaningful role in addressing the evolving priorities of telecommunications service providers.

In fy26, the company entered into multi year strategic engagements with leading european telecommunications service providers focused on driving innovation, strengthening digital resilience, and enabling ai led operational efficiencies.

• manufacturing: building on the mahindra groups strong industrial heritage, tech mahindra continues to expand its differentiated offerings across the manufacturing vertical, including aerospace and defence, automotive, construction, energy and utilities, mining, and related sub industries. While the global automotive sector continues to operate in a challenging environment, the company has proactively strengthened its positioning by expanding capabilities in aerospace, where it has deepened client relationships.

The company sees opportunities across core engineering and r&d services, as well as in managing strategic it operations, modernising technology stacks, deploying iot and ai enabled manufacturing solutions, and supporting the digital transformation of supply chains across multiple industry segments. A key area of focus is the adoption of industry 4.0 and ai enabled manufacturing solutions, including smart factory services, iot led operations, and intelligent automation. These solutions aim to eliminate data silos, strengthen end to end integration, and create more resilient and future ready manufacturing environments. In addition, the company continues to support the digital transformation of supply chains across industry segments through data driven, connected, and ai enabled solutions.

• bfsi: bfsi vertical continues to remain a key strategic focus for the company. In fy26, financial institutions remained focused on strengthening operational resilience while selectively advancing transformation

Programs aligned to efficiency and risk management objectives. Tech mahindra operates across the bfsi segment, supported by a combination of core service capabilities and specialised offerings delivered through its portfolio companies. The companys solutions address niche areas such as payments, asset and wealth management, core banking platforms, and insurance platforms positioning it to support clients across different stages of their digital and technology transformation journeys.

During the year, tech mahindra joined j.p. Morgan payments system integrator program to help global enterprises modernize payment infrastructure and enhance customer experiences. Leveraging its erp and sap expertise, the company will support real-time tracking, ai-powered dashboards, and global deployment of next-gen payment solutions.

The company also launched i.greenfinance, an advanced sustainable lending platform designed to transform the origination, evaluation and management of green and sustainability-linked loans for financial institutions worldwide. ^•

• technology, media, and entertainment: tech mahindra continues to support technology companies and hyperscalers across product engineering and it operations, with a growing emphasis on helping clients industrialize generative ai and scale next generation intelligent systems. The company plays an important role in accelerating development cycles while enhancing the robustness, reliability, and performance of ai driven products and platforms. Building on its advancements in agentic ai, tech mahindra is also enabling clients to adopt autonomous, multi agent systems that can plan and act across enterprise environments. These capabilities help organizations orchestrate complex workflows, improve operational efficiency, and unlock higher-value business outcomes with greater precision and scalability.

During the year, the company partnered with google to accelerate enterprise adoption of gemini enterprise leveraging gemini 2.5 multimodal models.

Our strategy:

Tech mahindra continued to execute firmly against its fy27 roadmap, progressing from a phase of strategic investment and stabilisation to one of scaled execution, margin expansion and sustained deal momentum. The year marked a pivotal shift as earlier initiatives translated into tangible operating leverage, improved customer metrics and a higher-quality growth pipeline. Tech mahindra remained focused on its clearly defined organisational, growth and profitability objectives under the fy27 roadmap. Fy26 represented a year of consolidation and acceleration, with sharper execution across go to market programs, disciplined cost management and deeper portfolio integration. These efforts resulted in consistent margin expansion, improved cash generation and the highest ltm deal wins in a decade, even amid continued macroeconomic uncertainty.

Customer centricity remained at the core of tech mahindras strategy in fy26. The company strengthened its must have accounts (mha)

Program, adding 63 mhas over the period. Focused account playbooks enabled deeper cxo engagement, stronger solution mapping and accelerated new logo acquisition across priority markets.

Parallelly, the turbocharge program continued to drive disciplined account mining and execution across existing large accounts. A differentiated operating approach focusing on hygiene, performance, governance and reporting led to improved outcomes, with $20 miuion+ accounts achieving quarterly run rates exceeding $1 biuion and growing faster than the company average.

Ai continued to serve as a foundational growth and execution engine for tech mahindra in fy26, as the company advanced its proprietary platforms and strengthened its ability to help clients progress from initial experimentation to scaled, enterprise-wide adoption. Key developments during the year included the launch of techm

Orion, a next generation agentic ai platform accompanied by the orion marketplace to support governed and scalable deployment of autonomous and assisted ai agents; steady progress on project indus and active participation in the indian ai mission, underscoring the companys commitment to sovereign and responsible ai; and the expansion of enterprise grade ai agents deployed at scale across multiple industries. Tech mahindra also invested significantly in workforce readiness, enabling more than 80,000 associates with ai and generative ai skills, including broad-based enablement across sales and support functions. As a result, ai became increasingly embedded within large client transformation programs spanning it operations, network services, business process modernization and customer experience, driving measurable operational and business outcomes.

Techm further reinforced its commitment to sustainability and esg during the year, emerging as the only indian it company to achieve the highest a rating across all three cdp categories— climate change, water security and supplier engagement. The company was also recognized as a global sustainability leader in the s&p global dow jones sustainability index (djsi) and featured among times worlds most sustainable companies 2025. In parallel, techm continued to strengthen its esg-led service portfolio, expanding capabilities across esg advisory and consulting, resource and energy management, environment, health and safety (ehs) risk management, regulatory compliance and incident tracking, as well as supply chain, sustainability data management and esg reporting platforms.

Weakness:

• need to leverage existing portfolio offerings and scale client relations

• scaling top accounts

Threats:

• sluggish global macro environment due to imposition of tariffs and trade barriers

• moderate revenue growth in key verticals

Strengths:

• mahindra group lineage

• customer centricity

• full-stack service offerings

• ai led capabilities and scaled industry expertise

Opportunities:

• unique positioning offering customers scale & speed

• build deep domain capabilities in key verticals

• cost structure improvement

• large deal focus

Key erm during fy26

Risk and impact	Mitigation strategy
Risk: risk of revenue growth stagnation due to reduced demand or due to loss of business to competition, plus risk of economic slowdown or recession in global economic growth.	The company is closely monitoring any effect this could have on revenues and is preparing to deploy suitable strategies to align variable costs to the revenue outlook. The company is also evaluating the possible opportunities that may arise from this economic and geopolitical situation.
Impact: reduction in customers spend triggered by their business conditions or by ongoing wars such as those in the middle east or share of wallet could adversely impact our revenue growth. Macroeconomic headwinds viz., gdp projections, persistent inflation, interest rate cycles, plus trade wars and instability in the financial systems causing uncertainty which in turn may cause customers to proceed with caution, adversely impact business sentiments.	The direct revenue contribution from the affected regions represents a low single-digit percentage of overall revenues, and accordingly, the company does not expect the impact to be material at this stage.
	To offset the possibility of lower spend, newer offerings and tech solutions, along with clients- focused solutions to either optimize costs or promote customers digital initiatives are being pursued.
Risk: cyber security and privacy risks - risk of data theft, deviation to information security requirement and cyber attacks.	Data protection controls (encryption, data leakage prevention etc.) And cyber security tools (firewalls, antivirus, etc.) Are deployed to prevent cyber-attacks and data exfiltration.
Impact: unauthorized use or disclosure of employee or company or customer data may lead to either breach of customer contract or fines/penalties from regulators and/or damage companys reputation.	User awareness and supplier risk management is rigorously implemented to ensure effective deployment of data security controls.
	Security controls are continuously monitored and rigorously assessed through annual privacy audit, it audits, external health check audits and customer audits.
Risk: impairment and m&a integration risk	A dedicated team monitors the busi ness performance of the acquired companies and corrective actions are initiated as required. Synergy benefits of large customer network, competencies, or cost optimization possibilities of techm are leveraged upon, to the extent possible.
Impact: possibility of declining business performance of acquired companies, due to weak economic environment or other strategic or operational factors, leading to impairment.	A comprehensive integration plan is executed across all acquired portfolio companies, covering front-office, middle-office and back-office functions including the system. This plan is centrally managed by the dedicated integration team to ensure alignment and timely resolution of integration challenges.
Inability, delay, or failure to integrate with the acquired portfolio companies to achieve the desired strategic synergies may result in either financial losses, damage to reputation, decreased productivity, loss of employee morale or legal matters.	The m&a team updates the leadership and the investment committee on the aspects of performance, impairment, consolidation, and integration, etc.
	While we actively aim to reduce the number of subsidiaries and branch offices, for the unmerged entities, we focus extensively on back-office integration to drive synergies and economies of scale.
Risk: human capital risks - high attrition levels, involuntary churn, and employee productivity due to work from home (wfh).	The company has continued to effectively manage attrition.
	The leadership transition has been smoothly executed with open communication with all stakeholders for effective change management.
Impact: high attrition levels adversely impact resource deployment on new and existing projects.	The company has introduced compulsory partial work from office.
Leadership change and/or organizational change could result in some employee churn.
Work from home carries the risk of loss of productivity and associated cyber security and data protection risks.
Risk: statutory compliance risk - tracking changing compliance requirements across geographies.	Applicable statutory compliances are tracked through our global compliance management system (gcms) with a bottoms-up process and dashboarding prior to compliance certification.
Impact: tracking the changing compliance requirements in multiple countries and adhering to the same for multiple entities is a challenge, and noncompliances could hurt our reputation as well as result in penal action by the concerned authorities.	A refresh of the laws and compliances in the tool has taken place and shall also continue to repeatedly be done to ensure that all requirements in the tool are updated and relevant.
Risk: technology risk - risk of deficiencies in emerging competencies.	Investment in the right technological competencies is key to maintaining our competitive edge. Our strategy of scale at speed drives us towards embracing newer technologies that have the potential for being adopted by enterprise at scale. Investment in new-age technological skills, including carefully curated training programs for upskilling the existing workforce, continue to be implemented. Key areas like artificial intelligence and virtual reality are well entrenched in our competencies. We have launched innoquest, an employee led innovation initiative, which includes conducting innovation workshops, hackathons, idea generation drives and sharing of triumph stories.
Impact: inability to timely adopt and invest in emerging competencies may result in a competitive disadvantage. Further, developing or acquiring new technologies or capabilities and organization-wide adoption has significant cost implications.	A robust physical and digital infrastructure is maintained to adhere to the highest quality standards.
Risk: delivery capability / capacity risk
Impact: the risk of not being able to deliver on time, or within budget or not meeting customer specifications is an inherent project-level risk in our industry. Inability to surmount these challenges could lead to penalties and/or loss of business and loss of reputation.	From a program governance perspective, a dedicated program office monitors and reports on various parameters of each engagement. Large engagements undergo additional review by delivery heads. Additional steering committee reviews are undertaken by leadership regularly for critical engagements.
Risk: legal and contractual risks	Contract-level risks are managed by our inhouse legal and contract management team who thoroughly review each contract to ensure appropriate contractual liabilities are assumed and necessary approvals are obtained as per the defined authority matrix. A contract management system is in place that digitizes the contract lifecycle and effectively manage the authoring, obligation management and risk management aspects of contracting. Additional oversight at the executive and board level is exercised through discussion on high-risk contracts at the risk management committee meeting.
Impact: legal, litigation and contractual risk arising out of contract execution and matters arising out of ipr, tax, regulations, employment contracts, adverse rulings, mergers, etc.	The legal and contract management team provides necessary support on matters relating to compliance, local in-country laws, taxation, etc. And seeks external counsel wherever required. We also have a robust mechanism for appropriately dealing with litigations.

Discussion on financial performance with respect to operational performance

Overview

The financial, statements have been prepared in compliance with the requirements of the companies act, 2013 and as per indian accounting standards (ind as) for the year ended march 31, 2026.

The financial statements of tech m and its subsidiaries have been consolidated on a line-byline basis by adding together like items of assets, liabilities, income, expenses, after eliminating intra-group transactions and any unrealized gains or losses in accordance with the indian accounting standard - 110 on "consolidated financial

Statements" (ind as 110).

The discussion on financial performance in the management discussion and analysis relate primarily to the standalone accounts of tech mahindra limited. Wherever it is appropriate, information pertaining to consolidated accounts for tech mahindra limited & its subsidiaries is provided for the current year and previous year. For purpose of comparison with other firms in this industry as well as to see the positioning and impact that tech mahindra limited has in the marketplace, it is essential to take the figures as reflected in the consolidated financial statements.

A. Standalone financial position

1. Equity share capital

The authorized share capital of the company is inr 9,243 million divided into 1,848,600,000 equity shares of inr 5 /- each. The paid-up share capital stood at inr 4,899 million as on march 31, 2026, compared to inr 4,895 million as on march 31, 2025. The increase in paid-up capital during the year is due to the issue of 8,47,540 shares on account of conversion of options into shares by employees under the employee stock option plans..

2. Other equity

A) securities premium account

The addition to the securities premium account of inr 805 million during the year is due to the amount transferred from share option outstanding account on exercise of stock options to the tune of inr 800 million and transfer on allotment of equity share inr 5 million.

B) retained earnings

The surplus in the statement of profit and loss as on march 31, 2026, was inr 183,726 million compared to inr 188,996 million as on march 31, 2025.

3. Right of use liabilities

In compliance with the accounting standard ind as 116 lease accounting, right of use ("rou") liability has been recognised balance of rou liability as on march 31, 2026, is shown in the table below:

		In million
Rou lease	As at 31st march
Liabilities	2026	2025
Long term	11,953	7,523
Short term	3,099	2,301
Total	15,052	9,824

4. Property, plant and equipment

The movement in property, plant and equipment is shown in the table below:

		In million
Property, plant and equipment	As at 31st march
	2026	2025
Gross book value
Freehold land	336	336
Buildings	21,978	21,958
Leasehold Improvements	1,145	1,110
Plant & equipment	15,284	15,270
Computers	29,804	28,407
Office equipment	2,774	2,593
Furniture and fixtures	7,459	7,341
Vehicles	162	184
Intangible assets	16,965	16,741
Total	95,907	93,940
Less: accumulated depreciation & amortization	74,845	71,446
Net block	21,062	22,494
Add: capital work- in progress	217	178
Net property plant and equipment	21,279	22,672

The net block of property, plant and equipment and capital work in progress stood at inr 21,279 million as on march 31, 2026, as against inr 22,672 million as on march 31, 2025. During the year, the company incurred capital expenditure (gross) of inr 4,416 miuion (previous year inr 4,662 miuion). The major items of capital expenditure include addition to computers, plant & equipment and furniture and fixtures.

Right of use assets

In compliance with the accounting standard ind as 116 lease accounting, right of use ("rou") assets has been recognised with effect from april 1, 2019. Balance of rou assets as on march 31, 2026, is inr 14,344 million as against inr 10,039 million on march 31, 2025.

5. Financial assets

The summary of companys investments is given below.

		In million
Investments	As at march 31
	2026	2025
Non current investments
Investment in subsidiaries	120,225	118,372
Investment in associates , joint ventures , bonds & others (treasury bonds & bills)	246	2,232
Total investments	120,471	120,604
Less : provision for diminution of value	27,002	19,894
Net non current investments	93,469	100,710
Investment property	323	340
Total non current investments	93,792	101,050
Current investments
Investment in mutual funds	24,773	21,413
Investment in non-convertible debentures and commercial papers	2,085	2,146
Total current investments	26,858	23,559
Total investment	120,650	124,609

Total investments (non-current) as on march 31, 2026, stood at inr 93,792 million as against inr 101,050 million, as on march 31, 2025. Investment in subsidiaries amounted to inr 120,225 million as on march 31, 2026, as against inr 118,372 million as on march 31, 2025. Diminution in value of investments in subsidiaries increased by inr 7,108 million during the year.

Investment in liquid mutual funds as of march 31, 2025, was inr 24,773 million (previous year inr 21,413 million), increase of inr 3,360 million, decrease in investment in nonconvertible debentures / bonds is inr 61 million.

6. Deferred tax asset

Deferred tax asset as of march 31, 2026, was at inr 10,416 million as compared to inr 8,551 million as of march 31, 2025. Deferred tax assets represent timing differences in the financial and tax books arising from depreciation of assets, provision for doubtful debts and leave encashment & gratuity.

The company assesses the likelihood that the deferred tax asset will be recovered from future taxable income before carrying it as an asset.

7. Trade receivables

Trade receivables (includes unbilled, contract assets, contractually reimbursable expenses) at inr 127,932 million (net of provision for doubtful debts and expected credit loss of inr 10,344 million) as of march 31, 2026, as compared to inr 110,377 million (net of provision for doubtful debts and expected credit loss of inr 9,967 million) as of march 31, 2025. Debtor days as of march 31, 2026 (calculated based on per-day sales in the quarter) were 89 days as compared to 86 days as of march 31, 2025.

8. Cash and cash equivalents and other bank balance

The bank balances include both rupee accounts and foreign currency accounts. The bank balances in overseas current accounts are maintained to meet the expenditure of the overseas branches and overseas project related expenditure.

		In million
Cash and cash equivalents and other bank balance	As at 31st march
	2026	2025
Bank balances in india & overseas
Current accounts	12,732	12,109
Deposit accounts	5,874	4,666
Total cash and cash equivalents and other bank balance*	18,606	16,775

* including unrealised (gain) / loss on foreign currency.

9. Other financial assets, other assets and loans

Other financial assets, other assets & loans as on march 31, 2026, were inr 74,490 million compared to inr 74,820 million as on march 31, 2025. Other financial assets include foreign currency derivative

Assets, security deposits, lease receivable, contractual receivable. Other assets include prepaid expenses, balance with government authorities, contract asset, advance income tax, advances to related parties, capital advances.

10. Provisions, financial liabilities & other liabilities

Liabilities and provisions were inr 138,412 million as of march 31, 2026, including long-term liabilities and provision of inr 14,327 million and short-term/current liabilities and provisions of inr 124,085 million compared to inr 115,478 million as of march 31, 2025, including long-term liabilities and provision of inr 12,738 million and short-term / current liabilities and provisions of inr 102,740 million.

B. Results of standalone operations

The following table sets forth certain income statement items as well as these items as a percentage of our total income for the periods indicated:

Particulars	Fiscal 2026	Fiscal 2025
	(in million)	% of total income	(in million)	% of total income
Income
Revenue from operations	489,270		446,172
Other income	5,806		13,330
Total income	495,076	100%	459,502	100%
Expenses
Employee benefit expense	176,630		171,070
Subcontracting expense	180,944		166,482
Operating and other expenses	66,318		64,231
Depreciation and amortisation expense	8,732		8,552
Finance costs	2,615		2,386
Impairment of non-current investment in subsidiaries	5,750		1,809
Total expenditure	440,989	89.1%	414,530	90.2%
Profit before exceptional item and tax	54,087	10.9%	44,972	9.8%
Exceptional item	2,452	0.5%	-	-
Profit before tax	51,635	10.4%	44,972	9.8%
Provision for taxation	13,043	2.6%	9,911	2.2%
Net profit for the year	38,592	7.8%	35,061	7.6%

1. Revenue

The company derives revenue principally from technology services provided to clients from various industries.

Revenue increased to inr 489,270 million in fiscal 2026 from inr 446,172 million in fiscal 2025.

Consolidated revenue

Consolidated revenue for fiscal 2026 inr 568,154 million ($ 6,385 million) compared to inr 529,883 million ($ 6,264 million) in fiscal 2025, growth of 7.2% in inr terms and growth of 1.9% in usd terms.

The increase in revenue (in usd terms) was mainly in communications vertical. (2.6%) and manufacturing (5.9%), bfsi (4.3%), retail, transport & logistics (7.3%) and offset by decline in hitech (-2.7%) and healthcare & life science (-0.6%).

Consolidated revenue by geography

In usd terms, revenue from americas was 49.8% in fiscal 2026 compared to 50.7% in fiscal 2025 while the share of revenue attributable to europe was 25.8% in fiscal 2026 compared to 24.1 % in the previous year. Revenue from rest of the world as a percentage of total revenue was 24.4% in fiscal 2026 compared to 25.2% in fiscal 2025.

Consolidated revenue by vertical

In usd terms, revenue from communications was 33.3% in fiscal 2026, compared to 33.1% in previous year. Revenue from manufacturing was 18% in fiscal 2026 compared to 17.3% in fiscal 2025. Revenue from hi-tech & media was 13.3% in fiscal 2026 compared to 13.9% in fiscal 2025. Revenue from banking, financial services & insurance was 16.3% in fiscal 2026 compared to 16.1% in fiscal 2025. Revenue from retail transport & logistics was 8.3% in fiscal 2026 compared to 7.9% in fiscal 2025. Revenue from healthcare was

7.3% in fiscal 2026 compared to 7.5% in fiscal 2025. Others were 3.5% in fiscal 2026 compared to 4.3% in previous year.

Consolidated revenue by segment

For fiscal 2026, 84.1% of revenue came from it services, whereas 15.9% of revenue came from bpo services. The revenue share for fiscal 2025 from it & bpo services was 83.9% and 16.1% respectively.

2. Other income (standalone)

Other income includes interest income, dividend income, foreign exchange gain/loss, rental income, and net gain on disposal of assets & miscellaneous income.

Interest income mainly consists of interest received on bank deposits. Dividend income includes dividend received on long-term investments as well as that received on current investments. Exchange gain/loss consists of mark to market gain/loss on ineffective hedges, realized gain/loss and revaluation gain/loss on translation of foreign currency assets and liabilities. Other income is inr 5,806 million in fiscal 2026 compared to inr 13,330 million in fiscal 2025.

Increase in other income was mainly due to gain on sale of land in the current fiscal year.

3. Expenditure (standalone)

Particulars	Fiscal 2026	Fiscal 2025
	(in million)	% of total expenditure	(in million)	% of total expenditure
Employee benefit expense	176,630	40.1%	171,070	41.3%
Subcontracting expenses	180,944	41.0%	166,482	40.2%
Operating and other expenses	66,318	15.0%	64,231	15.5%
Depreciation and amortisation expense	8,732	2.0%	8,552	2.1%
Finance costs	2,615	0.6%	2,386	0.6%
Impairment of non-current investment in subsidiaries	5,750	1.3%	1,809	0.4%
Total expenditure	440,989	100.0%	414,530	100.0%

Employee benefit expense includes salaries, wages and bonus, contribution to provident fund and other funds, share based payment to employees and staff welfare costs.

Subcontracting expenses include cost of direct contractors and agency contractors to support current and future business growth.

Operating and other expenses mainly include travelling expenses, rent, repairs and maintenance, communication expenses, office establishment costs, software packages and professional fees.

Impairment of non-current investment in subsidiaries

The company has investments in subsidiaries and associates, which are accounted at cost less any provision for impairment. The management assesses the operations of the subsidiaries/ entities, including future projections, to identify indications of diminution in the value of the investments recorded in the books of accounts.

Based on the performance of subsidiaries and relevant economic and market indicators, the company has reassessed the recoverable amount in subsidiaries as on march 31, 2026.

Since the recoverable amount was lower than the carrying value of investments, the company has recognised impairment loss of inr 5,750 miuion for fiscal 2026.

Profit before tax

Profit before tax was inr 51,635 miuion in fiscal 2026 compared to inr 44,972 million in fiscal 2025. Profit before tax as a

Percentage of total revenue is 10.6% in fiscal 2026 compared to 10.1% in fiscal 2025.

4. Income taxes

The provision for income tax for the year ended march 31, 2026, was inr 13,043 million as compared to inr 9,911 million in the previous year.

The effective tax rate in these years was 25.3% and 22% respectively.

5. Profit after tax

Profit after tax was inr 38,592 miuion in fiscal 2026 as compared to inr 35,061 million in fiscal 2025.

Profit after tax as a percentage of revenue is 7.9% in fiscal 2026 and 7.9% in fiscal 2025 respectively.

Consolidated pat

Consolidated pat for fiscal 2026 is inr 48,109 million as compared to inr 42,515 million last fiscal 2025. Pat as a percentage of revenue is 8.5% in fiscal 2026 & 8% in fiscal year 2025.

C. Cash flow

Particulars	Fiscal year
	2026	2025
Net cash generated from operating activities	45,938	42,931
Net cash generated from investing activities	4,321	5,043
Net cash used in financing activities	(48,989)	(46,592)
Net increase in cash and cash equivalents during the year	1,270	1,382
Effect of exchange rate changes on cash and cash equivalents	947	83
Cash and cash equivalents at the beginning of the year	16,023	14,558
Cash and cash equivalents at the end of the year	18,240	16,023

D. In accordance with the sebi (listing obligations and disclosure requirements 2018) (amendment) regulations, 2018, the company is required to give details of significant changes (change of 25% or more as compared to the immediately previous fy) in key financial ratios

Sr. No Key financial ratios1	Fiscal 2026	Fiscal 2025	% Change
1 Debtors turnover	4.5	4.6	-1%
2 Inventory turnover	Na	Na
3 Interest coverage ratio	21.7	15.0	44%
4 Current ratio	1.6	1.7	-5%
5 Debt equity ratio 2	0.07	0.04	58%
6 Operating profit margin (%)	11.6%	8%	44%
7 Net profit margin (%)	7.9%	7.9%	0%
8 Return on net worth	17.5%	15.4%	14%

1ratios are based on standalone financials ²debts include lease liability

Reasons for movement in ratios greater than 25 %

Interest coverage ratio: the increase in interest coverage ratio is on account of increase in earnings available to debt service holders.

Debts equity ratio: the increase in debt equity ratio is due to increase in debt during the year.

Operating profit margin: the increase in operating margin is on account of increase in operating profit.

E. Internal control system

The company maintains an adequate internal control system, which provides, among other things, reasonable assurance of recording the transactions of its operations in all material aspects and of providing protection against significant misuse or loss of companys assets. The company uses an enterprise resource planning (erp) package, business intelligence and analytics package, which enhances the internal control mechanism.

The company also has a chief information risk officer (ciro) and chief information officer (cio) for overseeing the internal control and systems.

F. Material developments in human resources including number of people employed

Being an organization that focuses on staying on the cutting edge of technology, through our people, we strive to attract the best talent through intensive recruitment drives in premier engineering and management institutes. During the year, techm saw decrease of 1,108 professionals. The global headcount of the company as on march 31, 2026, was 147,623 as compared to 148,731 as on march 31, 2025.

The ltm it attrition was 12.1% during the year as compared to 11.8% in the previous year. The company has been working towards retaining talent by investing in career development programs, talent engagement initiatives, employee well-being (personal and professional), rewards and recognition as well as an empowered work environment.