Tech Mahindra Q3FY26 Preview: PAT likely to rise 15%, margins to expand

Tech MahindraQ3F26 Result Preview: IT Services giant Tech Mahindra is set to announce its results for the December quarter on 16 January 2026. According to Zee Business Research estimates, revenue is expected at Rs 14,214 crore, up 1.6 Per Cent from Rs 13,995 crore in Q2FY26. EBIT may rise to Rs 1,800 crore, a 5.9 Per Cent increase, while margins are likely at 12.7 Per Cent. Net profit (PAT) is seen jumping 15.6 Per Cent YoY to Rs 1,380 crore.

EBIT margins climb over six quarters

The company's margins have steadily improved. They moved from 8.5 Per Cent in Q1FY25 to 9.6 Per Cent in Q2FY25, then 10.2 Per Cent in Q3FY25. The trend continued with 10.5 Per Cent in Q4FY25, 11.1 Per Cent in Q1FY26, and 12.1 Per Cent in Q2FY26. For Q3FY26, margins are expected at 12.7 Per Cent. Cost control and operational efficiencies, including fixed-cost projects, helped margins expand despite Europe-related challenges in the communication business.

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Retail segment stays strong

The retail vertical remains sturdy. Sustained client demand and active engagement are expected to support revenue. Zee Business Research notes that retail will continue to be a key growth driver in Q3FY26.

Communication segment to recover

The communication business saw temporary weakness in Europe. Recovery is likely in the second half of FY26, which should improve revenue going forward.

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Stock performance snapshot

Tech Mahindra shares gained ahead of results. On 16 January, 1:59 pm IST, the stock stood at Rs 1,664.00, up 4.75 Per Cent (+Rs 75.50). Over the past month, it rose 5.44 Per Cent (+Rs 85.80). Over six months, it climbed 3.49 Per Cent (+Rs 56.10). Year-to-date, the stock is up 3.50 Per Cent (+Rs 56.30).

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Q3FY26 is expected to show robust PAT growth, steady revenue gains, and improving margins. Retail strength and cost optimization will support earnings, while communication recovery may add in the next half. Recent stock gains reflect market confidence in Tech Mahindra’s growth outlook.