Tech Mahindra Sets Three-Year Plan for Robust Growth and Market Leadership by FY27

Tech Mahindra, a leading IT services firm, recently announced a strategic three-year plan aimed at enhancing business growth, improving margins, and achieving superior topline growth compared to its peers by the fiscal year 2027. This announcement comes in the wake of the company reporting a significant 41 per cent decline in consolidated net profit, attributed mainly to underperformance in its communications and telecom segments.

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During an analyst call, Tech Mahindra's CEO, Mohit Joshi, detailed the company's ambitious roadmap for the coming years. Joshi highlighted the transformative changes in how large enterprises engage with technology, driven by artificial intelligence, the consumerisation of tech, changing demographics, and geopolitical shifts. These factors necessitate a focus on both speed and scale for companies like Tech Mahindra.

Joshi expressed confidence in Tech Mahindra's ability to meet these challenges head-on, citing the company's commitment to learning and innovation. He outlined that the primary goal for FY27 is not only to surpass peer average growth rates but also to achieve industry-standard margins. This vision will be realized through a comprehensive strategy focusing on growth, operations, and organizational structure.

The CEO elaborated that the fiscal year 2025 would mark a turning point for Tech Mahindra, with significant investments planned in key accounts and markets, as well as the integration of portfolio companies. FY26 is expected to be a period of stabilization, where the integration efforts will yield cost savings and contribute to the company's overall strategy of revenue growth and margin expansion.

Joshi emphasized the importance of focusing on prioritized markets, securing large deals, maintaining a balanced industry mix, and leveraging synergies with portfolio companies. Additionally, productivity gains, talent management, and fostering a high-performance culture are seen as crucial elements of Tech Mahindra's strategy.

Artificial intelligence (AI) is identified as a key area of potential for Tech Mahindra. The company plans to reskill its workforce, incorporate AI and automation across all deals, and strengthen partnerships with hyper-scalers, original equipment manufacturers (OEMs), and academic institutions. Joshi hinted that the company's long-term strategy would be even more aggressive than its vision for FY27.

In summary, Tech Mahindra's three-year roadmap represents a comprehensive approach to navigating the challenges and opportunities presented by the rapidly evolving tech landscape. With a clear focus on growth, operational efficiency, and organizational agility, Tech Mahindra aims to not only recover from its recent profit slump but also position itself as a leader in the IT services industry.