Anand Mahindra, Chairman, Tech Mahindra
| Photo Credit:
ANI
Europe and a few markets in Asia-Pacific Japan (APJ) will continue to drive higher growth for Tech Mahindra in FY26, said Anand Mahindra, Chairman of the company, during its annual general meeting (AGM).
“We believe Europe, a few markets in APJ will continue to drive higher growth in FY26,” said Mahindra during the AGM. In FY25, he said America contributed the most in terms of revenue, while West Asia and Israel operations had “no material impact” on overall business. The company continued to closely monitor the situation and remain engaged with our clients in the region.
The company also said its client concentration is in line with that of large-cap IT services players. Mahindra said this concentration risk is managed by deepening client relationships through proactive engagement, co-innovation and value driven delivery. Mahindra also said that while services remain unaffected by current tariffs, the company is closely monitoring the evolving situation and its indirect impact on telecom clients.
“We are focussed on aligning our offerings with the clients’ needs, be it cost pressure, need for agile transformation, regulatory shifts or growth,” he said.
After describing AI as “the next frontier”, Mahindra said the AI strategy will be executed on four foundational pillars: transformation, productivity, innovation and assurance. Over the next two to three years, Tech Mahindra will invest in infrastructure and in enhancing the market position in key markets by investing in sales, marketing and key service lines across strategic verticals.
“Our reliance on the twin pillars of trust and effective application of AI is a major contributory factor to the progress your company has made in garnering major logos. A lot of this improvement can be attributed to the successful implementation of Tech Mahindra’s strategy of AI Delivered Right. There has been an expansion of expertise at the leadership level for capabilities like consulting services, GCC Practice, customer experiences, and more,” said Mahindra, adding that they partnered with Mahindra University and other leading institutions to ensure access to relevant learning across strategy, domain technology and process.
Skilling and hiring
When asked about AI’s impact on skilling and hiring, Tech Mahindra said: “Altman was right, AI is redefining the value we bring. AI presents a significant opportunity for IT services players. It allows us to automate, enhance delivery efficiency and move closer to our clients’ core transformation agenda, which deepens our strategic relevance.
Acknowledging aspirations of Tier-2 and Tier-3 cities in India, Mahindra said the company is investing in local skilling and partnering with academic institutions to unlock opportunities and expand strategically to harness this potential.
At the same time, Mahindra mentioned 80 per cent automation and 50 per cent reduction in call volumes for a European client or a 50 per cent reduction in cost base while enhancing member engagement and operational stability via AI-enhanced platforms for an Australian banking client.
The company’s last bonus was in 2015 with future increase in dividends to be announced when deemed appropriate by the Board and as per guidelines.
“On the matter of bonus shares, if and when considered, it is subject to the discretion of the Board, and if taken, will be communicated as per applicable laws and the company policy,” he said.
Tech Mahindra said it remains open to setting up centres like the one in Chennai and other cities, and opportunities will be assessed in collaboration with relevant stakeholders. The company is also simplifying its legal entity structures across jurisdictions. The liquidation costs are really outweighed by the optimization benefits.
Published on July 17, 2025
