Can Mohit Joshi catapult Tech Mahindra into the big league of Indian IT?

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₹661 crore due to a slowdown in key verticals. Net revenue for the full year declined 5% to $6.27 billion, while net profit plummeted 52.2% to $284 million, down from $598 million a year ago. To be fair, the last 12 months have been tough for the industry as a whole.

But Tech Mahindra suffered a margin decline far worse than its peers. The company’s Ebit margin fell from 11.2% in March 2023 to 7.4% in March 2024, a decline of 380 basis points (bps). TCS’s Ebit margin rose 151 bps, while Infosys suffered a 94 bps decline; LTIMindtree, meanwhile, saw a decline of 164 bps.

With $6.27 billion in revenue, Tech Mahindra is by no means small. “But Tech Mahindra does not command the kind of position that a company of such scale should have," said Yugal Joshi, partner at Everest Group, a consultancy. That is something the top-tier IT services companies are capable of and Tech Mahindra is now making a serious attempt to break into that league.

The $250 billion IT services industry is fairly mature with companies such as TCS and Infosys counted among the leading global tech services providers. Even so, the current anaemic growth environment, slowdown in tech spending and artificial intelligence-led disruptions, which are resetting future growth drivers, give Tech Mahindra the space to refresh and reinvest to improve both its revenue and margins. Joshi is looking to do just that.