Tech Mahindra, an Indian IT major, announced its financial results for the third quarter of fiscal year 2026 (Q3 FY26), reporting a robust 14.1% year-on-year (YoY) increase in its consolidated net profit. The company's net profit for the quarter ended December 31, 2025, stood at ₹1,122 crore, compared to ₹983 crore in the corresponding period last year. Revenue from operations also showed steady growth, rising 8.3% YoY to ₹14,393 crore, up from ₹13,285 crore in Q3 FY25. This performance was bolstered by a significant expansion in the Earnings Before Interest and Tax (EBIT) margin, which improved by 290 basis points to 13.1%, and saw EBIT itself surging 40.1% YoY to ₹1,892 crore. This marks the ninth consecutive quarter of margin improvement for Tech Mahindra, reflecting strong operational efficiency and better working capital management. The company also achieved substantial new deal wins, with the total contract value (TCV) surpassing $1 billion ($1.096 billion), representing a 47% increase YoY and 34% sequentially. Diluted earnings per share (EPS) for the quarter was reported at ₹12.64. While the sequential net profit saw a dip of 6.1% compared to the preceding quarter, this was primarily attributed to a one-time exceptional charge related to new labor codes. Despite this, the underlying operating performance and deal momentum remained strong, with management expressing confidence in further progress towards FY27 goals focusing on digital solutions, generative AI, and operational improvements.