Tech Mahindra Ltd.'s net profit for the third quarter of FY26 fell 6.1% sequentially due to one-time impact of the new labour codes, according to an exchange filing on Friday.
The company registered a consolidated bottom-line of Rs 1,122 crore compared to Rs 1,195 crore in the precending quarter.
On the other hand, revenue went up 2.8% to Rs 14,393 crore from Rs 13,995 crore in quarter ended Sept. 30. Earnings before interest and tax went up 11.3% to Rs 1,892 crore, compared to Rs 1,699 crore and margin expanded to 13.1% from 12.1% in Q2 FY26.
The IT company joined its peers in facing a one-time impact from the government's new labour codes which came into effect on Nov. 21, 2025. Tech Mahindra made an employee benefit provision of Rs 272 crore, according to the filing.
The company's headcount in the IT division stood at 76,194, down by 4,671 year-on-year. The last 12-month voluntary attrition stood at 12.3 % compared to 12.8% in the last quarter.
Large deal wins for the quarter amounted to $745 million compared to $816 million in Q2 FY26. "Our deal wins on an LTM basis are the highest we have achieved in the past five years, reflecting an improved deal-win run-rate over the past several quarters", said CEO Mohit Joshi.
He added that the momentum is a testament to the company's sustained investments in sales, solution-oriented go-to-market approach and the growing relevance of their AI-led offerings in addressing client needs.
For all the live updates of Q3 earnings on Friday, click here.
Tech Mahindra Q3 Results (Consolidated, QoQ)
- Revenue up 2.8% at Rs 14,393 crore versus Rs 13,995 crore (Bloomberg Estimate: Rs 14,160 crore)
- Profit down 6% at Rs 1,122 crore versus Rs 1,195 crore (Estimate: Rs 1,373 crore)
- EBIT up 11.3% at Rs 1,892 crore versus Rs 1,699 crore (Estimate: Rs 1,769 crore)
- Margin at 13.1% versus 12.1% (Estimate: 12.5%)
- Note: New Labour Codes impact of Rs 272 crore in Q3
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