Debasis Mohapatra
Bengaluru, 4 February 2025
Tech Mahindra is chasing large deals that come up with margin improvement coupled with long-term growth prospects in order to accelerate its revenue growth.
According to the company management, it has created a large deal team to engage clients throughout the implementation period.
“The large deal build up is steady and management is confident of gradually growing faster than peers. Tech Mahindra continues to prioritize margin over growth in the near term, and is therefore selectively participating in large deals. It remains confident on delivering its medium-term margin aspiration of 15% by FY27,” brokerage firm, Emkay wrote in a report.
In the post Q3 earnings analyst call, the mid-tier IT firm’s CEO has echoed the sentiment.
“While these new deal wins will help us scale our priority verticals, we have made sure to chase quality over quantity. I am really proud to announce that we have on boarded 40-plus new clients from a must-have account so far in the current fiscal year, of which 12 were onboarded in the December quarter itself….We will continue building a high quality and a scalable client base that can contribute to our long-term growth,” CEO of Tech Mahindra, Mohit Joshi has said last month.
To increase momentum in the large deal space, Tech Mahindra has built up a team with special focus on this segment.
“We have created a large deal solutioning team comprising of superstar deal makers who will identify and oversee complex multi-tower deals throughout the deal life cycle,” Joshi has said.
After years of slow growth, Tech Mahindra is showing early signs of revenue acceleration under the current CEO, Mohit Joshi. However, improvement in telecom, and manufacturing will be critical for its growth revival.
“Management expects CY25 to be better than CY24, but suggested that it is likely to be an incremental improvement and not a V-shaped recovery,” the brokerage report said.
