Tech Mahindra on the recovery track

QUALITY AND SIZE OF DEAL WINS ARE IMPRESSIVE

- PADMINI DHRUVARAJ

In among his first interviews after taking over as CEO of Tech Mahindra in December 2023, Mohit Joshi was asked how much patience shareholders would need to have before he delivered a turnaround. Joshi's answer, in which he quoted a former Goldman Sachs CEO, was, "We must always be long-term greedy." On a more serious note, he went to add there was no reason, given the company's strong platform and the heritage of the Mahindra Group, why Tech Mahindra shouldn't deliver more than it was.

In April 2024, "Scale at Speed," a three-year turnaround plan to be executed by 2027, was unveiled. The core objectives are to achieve a growth rate in the top line that outpaced the average of the top 6 IT players and to expand the operating margin to 15% by FY27. Moreover, Joshi wants an organisational transformation. Explaining the targets, Joshi said the plan for margins is about fixing the pyramid, getting better rate realisations and other interventions including automation.

Nine months down the line, experts say, Tech Mahindra is progressing at a steady pace and is on the right path for a turnaround. In a recent update, Joshi said the company has shifted to a global service line model and enhanced its focus on key areas such as large deals from must-have clients with revenues exceeding $5 billion. Moreover, it wants to re-balance the portfolio across industries and geographies.