Financial Performance Overview
Tech Mahindra reported strong financial results for FY26 with standalone revenue growing 9.7% to ₹489.27 billion and net profit increasing 10% to ₹38.59 billion. Consolidated performance showed 7.2% revenue growth to ₹568.15 billion with net profit of ₹48.11 billion. The company maintained robust operational metrics with EBIT margin expansion of 290 basis points to 12.6% and deal wins of USD 3.79 billion, representing a 42% year-over-year increase.
Dividend Declaration and Capital Returns
The Board recommended a final dividend of ₹36 per share (720% on face value), bringing the total FY26 dividend to ₹51 per share (1020% aggregate). This includes the interim dividend of ₹15 per share paid in November 2025. The record date for the final dividend is set for July 3, 2026, with book closure from July 1-3, 2026. The total dividend payout amounts to ₹44.07 billion, demonstrating significant capital return to shareholders.
39th Annual General Meeting Details
Tech Mahindra will hold its 39th AGM on July 17, 2026, through video conferencing. Key agenda items include adoption of financial statements, dividend declaration, re-appointment of Dr. Anish Shah as Non-Executive Director, and consideration of Mr. Krishnam Parasramka's appointment as Director proposed by a shareholder. The company disclosed unclaimed dividends totaling ₹382.89 million across multiple financial years, with various transfer dates to IEPF scheduled through 2032.
ESG and Sustainability Leadership
The company demonstrated exceptional ESG performance with 26.45% renewable energy usage (up from 1.77% in FY16), 29% reduction in Scope 1+2 emissions from base year, and zero data breaches. Tech Mahindra achieved CDP 'A' ratings across Climate Change, Water Security and Supplier Engagement, and was featured in TIME's 'World's Most Sustainable Companies 2025'. Social initiatives included 803,244 CSR beneficiaries, 34.59% women in workforce, and 100% associates trained on ethical business conduct.
Innovation and Technology Advancements
Strategic initiatives included the launch of "AI Delivered Right" enterprise strategy and TechM Orion agentic AI platform. The company was shortlisted among 12 organizations to build India's foundational AI models and participated in ARC AGI for reasoning models. Project Indus evolved into a civilization-scale Indic language model, while 80,000+ associates were enabled with AI skills. R&D expenditure totaled ₹247 million focused on Generative AI, Blockchain, and Quantum computing.
Corporate Governance and Board Structure
The company maintained strong governance with 10 directors (6 independent, 40% women directors, 40% foreign nationals). Key committees including Audit, Nomination & Remuneration, and Risk Management provided effective oversight. The CSR committee, chaired by Ms. Penelope Fowler, oversaw ₹796.4 million in CSR spending focused on education infrastructure at Mahindra University. Whistleblower mechanisms received 115 complaints with appropriate resolution processes.
Risk Management and Contingent Liabilities
Enterprise risk framework integrated climate risk assessment with internal carbon price of USD 13/MTCO₂e. Significant contingent liabilities included ₹15.35 billion in income tax matters (primarily transfer pricing), ₹15.48 billion in service tax disputes, and ₹12.88 billion EPFO claims. The company maintained CARE AAA credit rating with stable outlook and robust cybersecurity protocols with ISO certifications.
Capital Structure and Investments
The capital structure remained stable with ₹4.90 billion equity share capital (979.84 million shares). Investments included ₹31.27 billion in mutual funds and impairments of ₹5.75 billion on non-current investments in subsidiaries. Promoter holding stood at 34.97% with Life Insurance Corporation increasing stake to 11.44%. The company maintained ₹50.46 billion in cash equivalents with strong operating cash flow of ₹45.94 billion.
Forward Outlook and Targets
Tech Mahindra is targeting Net Zero by 2035 with 90% emissions reduction, 90% renewable energy sourcing by FY30, and 50% revenue from sustainable solutions by FY30. The company continues to focus on workforce diversity, AI innovation, and maintaining leadership in corporate governance while navigating macroeconomic challenges and competitive pressures in the IT services sector.