Tech Mahindra puts growth first after margin surge
Tech Mahindra CEO Mohit Joshi says organic growth is the priority after profitability nearly tripled, rules out data centres and eyes bigger deals after March 2027.
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what happened
According to Moody's, Tech Mahindra CEO Mohit Joshi is marking three years in the role this December. Over that period, the company, the fifth-largest Indian tech services firm, has nearly tripled its profitability, a record few peers match. Management expects margin expansion to continue beyond the next fiscal year, but driving growth in the near term remains the main priority.
Joshi said the company is focused on organic growth and does not want to buy businesses just to add revenue. Small tap-in deals are possible, while larger acquisitions could be considered after March 2027. Data centres are not part of the plan. He described Indus, the large language model the company built from scratch, as a way to show clients its AI credentials rather than a meaningful source of revenue.
He also said the link between revenue growth and headcount will weaken as AI spreads.
why it matters
For investors, the notable point is that the stock now trades at a premium to larger peers on price-to-earnings, reversing an earlier discount. Plans for acquisitions and margins are still management intentions, not results.
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sources
- Tech Mahindra prioritises growth blitz after margin boom — Moody's, 1 November 2026 at 10:12 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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