Tech Mahindra Q3 Preview | Profit and margins expected to improve QoQ

IT services company Tech Mahindra Ltd is scheduled to announce its December quarter earnings on Friday, January 16, 2026. The company is expected to report a net profit of ₹1,385 crore for Q3FY26, up 15.9% quarter-on-quarter from ₹1,194.5 crore in Q2FY26.

Revenue for the quarter is estimated to increase 1.5% QoQ to ₹14,209 crore from ₹13,995 crore, while dollar revenue is projected at $1,593 million, up 0.5% QoQ from $1,586 million.

EBIT margin is estimated at 12.7% for Q3FY26, compared with 12.1% in the previous quarter. A CNBC TV18 poll suggests constant currency revenue growth of 0.6% QoQ, indicating softish revenue growth, while margin expansion is expected to continue.

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Tech Mahindra’s EBIT margin has steadily improved over the last six quarters, rising from 8.5% in Q1FY25 to 12.7% in Q3FY26.

Quarter	EBIT %
Q1FY25	8.5%
Q2FY25	9.6%
Q3FY25	10.2%
Q4FY25	10.5%
Q1FY26	11.1%
Q2FY26	12.1%

For FY27, the company maintains guidance for growth above the industry average and an EBIT margin of around 15%. While growth in FY27 is expected to surpass FY26 levels, it may be muted relative to initial expectations.

On Wednesday (January 14), shares of Tech Mahindra Ltd ended at ₹1,592.00, down by ₹21.05, or 1.30%, on the BSE.

Also Read: Tech Mahindra Q1 Results: Constant currency revenue falls more than expected, margin improves