Tech Mahindra unveils three-year road map to bounce back on track

IT services firm Tech Mahindra on Thursday unveiled a three-year ROA map aimed at driving business momentum, improving margins and achieving “much higher” topline growth than peer average by FY27. Is.

The move assumes significance as the company on Thursday reported nearly 41 per cent decline in consolidated net profit amid weak performance of communications and telecom sectors.

During an analyst call, Tech Mahindra CEO Mohit Joshi outlined the company’s roadmap for the next three years, saying: “We are living in a new era of scale and speed. The way large enterprises approach technology. That approach has fundamentally changed.”

He said artificial intelligence, consumerization of technology, demography and geopolitics are driving massive change as the industry looks at the twin imperatives of speed and scale.“Tech Mahindra has the promise of scale and speed, and a huge focus on learning… I am confident this platform has the potential to deliver… Will keep you updated on our progress… And whether our results will improve will be seen soon,” Tech Mahindra’s top boss told analysts.

Outlining the outlook for FY27, he said the company’s main objective would be to achieve better and higher topline growth than the peer average, and improve industry standard margins.

This vision will be achieved through three key elements – growth strategy, operations strategy and organization strategy, he said.

Elaborating on the three-year road map, Joshi said the last quarter (Q4) was the beginning of defining the strategy and structure.

FY25 will be the turnaround phase in which investment in front-end integration of accounts, key markets and portfolio companies will be the main focus.The next financial year, FY26, will be one of stabilization for the company where integration of the portfolio companies will be completed with a focus on cost savings.

Joshi said the focus will be on accelerating revenue growth and margin expansion.

The CEO said the emphasis will be on priority markets, large deals, balanced industry mix, synergy with portfolio companies, productivity gains, talent management M&M synergy and developing a high performance culture.

“We see tremendous potential in AI,” he said, adding that the company is looking to reskill the talent base, incorporate AI and automation in all deals, strengthen relationships with hyper scalers, OEMs and academia. Will focus on.He said the company’s long-term strategy will be more aggressive than its fiscal 2027 vision. The Indian Community