Tech Mahindra will roll out wage increases in a phased manner starting Q2 FY27, the company confirmed during its Q1 FY27 earnings call on July 16, 2026, even as it posted a 28.4% year-on-year rise in net profit to ₹1,465 crore.
The Pune-headquartered IT services firm reported revenue of ₹15,712 crore for the June 2026 quarter, up 17.6% year-on-year, with new deal wins of $1.08 billion marking the third straight quarter above the $1 billion mark. Management flagged the coming wage hikes as a near-term cost pressure that could weigh on margins before efficiency gains offset it, alongside continued caution on discretionary IT spending.
CEO and Managing Director Mohit Joshi framed the quarter as validation of the company’s ongoing transformation plan: “YoY growth of 6.1%, coupled with three consecutive quarters of deal wins exceeding $1 billion dollars, underscores the resilience of our business and the growing relevance of our offerings,” Joshi said on the earnings call, adding that the $50 million-plus client base grew by seven accounts during the quarter.
CFO Rohit Anand attributed the quarter’s performance to broad-based growth and disciplined execution: “We delivered a strong Q1 performance with broad-based growth, margin expansion, and disciplined working capital management, reflecting consistent execution and sustained business momentum,” he said.
Tech Mahindra is not alone in navigating this balance. Indian IT majors have generally kept appraisal hikes muted through FY26 as they weigh AI-linked margin pressures against wage inflation, with TCS, Infosys, and Wipro all facing similar tension between retaining talent and protecting profitability. Tech Mahindra’s EBIT margin expanded to 14.4% this quarter, still short of its 15% FY27 target.
