Tech Mahindra Pivots with Three-Year Strategy for Growth and Recovery

Tech Mahindra unveils a three-year roadmap to drive business growth, improve margins, and surpass industry growth by FY27. Despite a profit decline, CEO Mohit Joshi outlines a strategy focusing on growth, operations, and organizational improvements. The plan includes investing in key markets, integrating portfolio companies, and leveraging AI to enhance productivity. The aim is to achieve higher revenue growth and industry-standard margins, positioning Tech Mahindra as a leader in the technology industry.

IT services firm Tech Mahindra on Thursday unveiled a three-year road map that aims to spur business momentum, improve margins and achieve ''better and higher'' topline growth than peer average by FY27.

The move assumes significance as the company on Thursday reported a slump of about 41 per cent in consolidated net profit amid a weak show by its communications and telecom segments.

During an analyst call, Tech Mahindra CEO Mohit Joshi unveiled the contours of the company's road map for the next three years, saying: ''We are living in a new era of scale and speed. The way large enterprises approach technology has fundamentally changed.'' He said artificial intelligence, consumerisation of tech, demographics and geopolitics are driving the massive shift, as the industry witnesses the twin imperatives of speed and scale.

''Tech Mahindra has scale and the promise of speed, and with a huge focus on learning... I am confident that the platform has the capability to deliver...we will keep you updated on our progress... and our results will be seen soon,'' the top boss of Tech Mahindra told analysts.

Outlining the vision for FY27, he said the main aim for the company will be to achieve better and higher topline growth than the peer average, and have improved industry standard margins.

The vision, he said, will be achieved through three key elements -- growth strategy, operations strategy, and organisation strategy.

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

FY25 will be the turnaround phase wherein investing in accounts, key markets, and front-end integration of portfolio companies would be the main focus. The following fiscal, FY26, would be one of stabilisation for the company where integration of portfolio companies shall be completed with a focus on cost savings.

Joshi said accelerating revenue growth and margin expansion would be in focus all through.

Emphasis would be laid on prioritised markets, large deals, a balanced industry mix, synergy with portfolio companies, productivity gains, talent management, M&M synergy, and cultivating a high performance culture, the CEO said.

''We see tremendous potential in AI,'' he said, adding that the company will focus on reskilling the talent base, infuse AI and automation in all deals, and strengthen relationship with hyper scalers, OEMs, and academia.

He said that the company's longer strategy would be much more aggressive than the vision of FY27.

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