Tech Mahindra, an Indian IT services company, announced its Q3 FY26 financial results on January 16, 2026, reporting a significant 14.11% year-on-year (YoY) increase in consolidated net profit, reaching ₹1,122 crore. This marks a positive growth compared to ₹983.2 crore in the same period last year. The company's revenue from operations also saw robust growth, climbing 8.3% YoY to ₹14,393 crore from ₹13,285 crore in Q3 FY25. On a quarter-on-quarter basis, revenue increased by 2.85% from ₹13,994 crore. Operationally, Tech Mahindra's EBIT margin expanded by 2.9% sequentially, reaching 13.1%, indicative of improved efficiency and disciplined execution. The company secured new deal wins totaling $1.096 billion, representing a strong 47% increase YoY and 34.3% quarter-on-quarter. However, the manufacturing segment, while showing positive momentum in engineering services, particularly in semiconductors, saw its US automotive segment in a 'wait and watch' mode, indicating a mixed performance rather than overall 'manufacturing strength' as a singular driver for growth in this quarter. This contrasts with earlier quarters where manufacturing was highlighted as a key growth area. The company also continued to face macroeconomic headwinds impacting certain sectors like communications. The IT industry has seen a trend of employee headcount reduction in recent quarters, with Tech Mahindra also reporting decreases in previous Q3 periods.