Tech Mahindra Limited · NSE:TECHM
Tech Mahindra — Q4 FY25 Earnings Presentation
65 slides from Tech Mahindra's earnings presentation, Apr 24, 2025
Slide 1: Exchange filing cover letter: Investor Presentation
Tech Mahindra Limited Sharda Centre, Off Karve Road, Pune - 411004, Maharashtra, India Tel. +91 20 6601 8100 techmahindra.com connect@techmahindra.com CIN L64200MH1986PLCO41370 24th April, 2025 To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th fl
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation may contain ‘forward-looking statements’ identified by the use of forward-looking words or phrases and statements relating to our future performance and prospects for growth in FY2026 and beyond, our ability to achieve our financial, strategic and
Slide 3: Agenda
Agenda AI Vision FY27 Delivering The Q&A Delivered Right An Update Profitable Path Ahead Growth Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 2
Slide 4: Metrics Beyond Earnings: NPS, ESAT
Metrics Beyond Earnings 162 45 NPS ESAT >50% ~90% Fortune Must Have Top Quartile Highest in Faster Expense Top 2 Analyst Global 500 Accts Added in the Sector Three Years Settlement Quadrants Always Listening, Always Improving Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved
Slide 5: New Mindset
Winners Across Industries are Embracing a New Mindset Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 4
Slide 6: Capabilities
Strengthened by… Application Development Maintenance & Support Banking Financial Services and Insurance Communications Consulting & Next Gen Services Manufacturing Digital Enterprise Applications Industries Capabilities People Healthcare & Life Sciences Experience Design Services Energy & Utilities
Slide 7: State of AI Today
State of AI Today AI must transition from vision and experimentation to practical and safe value delivery Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 6
Slide 8: AI Adoption
AI Adoption 74% of Companies Struggle to Achieve and Scale Value Source: BCG Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 7
Slide 9: AI Delivered Right
AI Delivered Right Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 8
Slide 10: AI Delivered Right – Foundational Pillars
AI Delivered Right – Foundational Pillars Our Productivity Transformation Innovation Assurance Commitment Delivered Delivered Delivered Delivered • Build and deliver Agentic • Industry-specific • AI-powered customer • Responsible approach to AI AI systems that bring AI solutions experience through V
Slide 11: Strategic AI Partner
Strategic AI Partner Setting the stage for Agentic AI Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 10
Slide 12: AI Delivered Right
AI Delivered Right Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 11
Slide 13: Vision FY27 An Update
Vision FY27 An Update Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 12
Slide 14: 3-Year Roadmap
3-Year Roadmap Q4 FY24 FY25 FY26 FY27 The Beginning Turnaround Phase Stabilization Phase Reaping Returns Structure and Ground the new org Continue above normal Improved long term strategy definition investments structural mix Investment in accounts, key markets, service lines Full integration of Con
Slide 15: The TechM Flywheel
The TechM Flywheel Balanced industry mix High growth services focus Focus on prioritized market Turbocharge program Large deal focus Vision FY27 Topline growth > Peer avg Industry standard margins High predictability Productivity gains M&M synergy Synergy with portfolio cos Talent management Operati
Slide 16: The TechM Flywheel
The TechM Flywheel Balanced industry mix High growth services focus Focus on prioritized market Turbocharge program Large deal focus Vision FY27 Topline growth > Peer avg Industry standard margins High predictability Productivity gains M&M synergy Synergy with portfolio cos Talent management Operati
Slide 17: Balanced Industry Mix
Balanced Industry Mix BFSI Telecom Manufacturing • Partner of the year awarded by Temenos • Serve 9 of top 10 telcos across prioritized • 50%+ penetration in top 30 companies markets across prioritized markets • Secured 15+ New logos (3 in the Fortune 500) • Enhanced Telecom solution portfolio • Sma
Slide 18: Focus on Prioritized Markets
Focus on Prioritized Markets Ecosystem Verticalization Sales Investment Leadership Advisory and PE • US – Sharpened vertical focus • 75%+ sales HC focused • Deeper bench built beyond Telecom & Hi-Tech into on priority markets • 100+ relationships BFSI, MFG, HLS, RTL & more • 15+ roundtables • Specia
Slide 19: Turbocharge and Large Deal Focus
Turbocharge and Large Deal Focus Turbocharge Large deal program Account Team Dedicated Team Dedicated client partner, delivery partner, 60+ people with high pedigree including Deal Directors, named market makers, named marketing anchor Enterprise Architects, Deal Originators and Transition Experts C
Slide 20: Autonomous Operations
Autonomous Operations Cementing KPN’s Position as an Innovation Leader Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 19
Slide 21: The TechM Flywheel
The TechM Flywheel Balanced industry mix High growth services focus Focus on prioritized market Turbocharge program Large deal focus Vision FY27 Topline growth > Peer avg Industry standard margins High predictability Productivity gains M&M synergy Synergy with portfolio cos Talent management Operati
Slide 22: M&M Synergy
M&M Synergy Transformational Leveraging Scale of Group Co-creation Work into Group CXO Digital Cockpit Leveraging M&M group Car Configurator in AR 4k+ KPIs, Data -> Insight -> Action leadership and network for Mahindra Auto Mahindra Finance Transforming consumer Partnering with some of the group’s s
Slide 23: Culture Building
Culture Building Simplify Clarify Innovate Perform Streamlining Building and Enabling internal Driving performance processes to foster communicating a strong and customer orientation & easier collaboration sense of purpose focused innovation delivering excellence Company Confidential | Copyright © 2
Slide 24: Marketing & Branding
Marketing & Branding Brand Demand Expand Grand • Global Chess • WEF, Davos • Renewed • Advisor led deals League MarTech Stack • MWC, NRF, • Private equity • Formula E Hannover Messe • ABM for relations Turbocharge • WSJ Big Thinkers • Integrated Accounts Marketing Campaigns Company Confidential | Co
Slide 25: ESG Leadership
ESG Leadership Terra Carta Seal First Indian company to be awarded the Sustainable Markets Initiative’s Terra Carta Seal Dow Jones Sustainability Index (DJSI) 2024 Top Indian company in Software & Services on DJSI Parameters Targets World Index 2024 and ranked 2nd globally with a score Climate Resil
Slide 26: The TechM Flywheel
The TechM Flywheel Balanced industry mix High growth services focus Focus on prioritized market Turbocharge program Large deal focus Vision FY27 Topline growth > Peer avg Industry standard margins High predictability Productivity gains M&M synergy Synergy with portfolio cos Talent management Operati
Slide 27: Project Fortius
Project Fortius Actions for Sustainable Margin Improvement Sustaining Expanding Horizon Momentum – FY26 Unlock • FPP optimization via Automation, • Portfolio integration Productivity Improvements Process and System integration led margin improvements • Delivery Led Growth • Optimize ARC • Improve av
Slide 28: Transforming Tech Mahindra into a Learning Organization
Transforming Tech Mahindra into a Learning Organization High-Impact Learning Interventions in FY’25 VELOCITY ELITE AI-Based, Skill Capability Gold-standard Key Management enhancement Roles Academies 30%+ 15%+ Platform program for Global for PMs, PGMs, Certification Reskilling Sales Team Large-Deal T
Slide 29: Rapid strides in High-Margin and High-Growth Service Lines
Rapid strides in High-Margin and High-Growth Service Lines Digital Engineering Next Gen Services Cloud Enterprise Apps Services • 11 Awards in last 2 years, incl • ISG - Leader in Digital • 20+ leadership position in • Entered Gartner MQ for Public Best GSSP Partner of the year Engineering and eMobi
Slide 30: Delivery Excellence
Delivery Excellence Talent Planning Skill Large Solution Quality Process and Acquisition Development Deal Review Development & Systems • AI based platform • Hyper personalization • Dedicated solution • Organization • Proactive account for fulfilment of training for client designers, architects, wide
Slide 31: Customer testimonial: Brighter Super
TechM was selected as the single ITO and BPO partner after a rigorous procurement activity. TechM has delivered on reducing Brighter Super’s cost base by 50%, building our member journeys and bringing stability, predictability, and resilience to Brighter Super’s operations. I have been particularly
Slide 32: Delivering Profitable Growth
Delivering Profitable Growth Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 31
Slide 33: Financial Trends
Financial Trends Deal Wins (USD Mn) Revenue y-o-y (in CC) 745 798 Actuals Stated Goal 603 534 0.3% Peer Average 500 FY24 FY25 FY26 FY27 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 -4.7% Earnings Before Interest & Taxes (EBIT %) Return of Capital Employed (ROCE) 10.5% 22.60% 10.2% 20.20% 9.6% 19.40% 8.5%
Slide 34: FY25 Metrics
FY25 Metrics Strategic Actions Metric 2025 Change ▪ Growth in account > $20M 2.3% +470 bps Growth ▪ Contribution from NA, Europe, prioritized pockets in APJ 81.3% +2 bps ▪ Net new deals ($Bn) $2.7 +42.5% ▪ Industry mix (Enterprise) 66.9% +1.6% ▪ Entry level workforce as a % of total 27.8% +200 bps M
Slide 35: EBIT Expansion Roadmap
EBIT Expansion Roadmap 15% Portfolio Mix Wage hikes Investments 9.7% Cost Saving Pricing & DLG One time Utilization Subcons Offshoring 6.1% Cost optimization (Reported) N-1 rotation FY 24 FY 25 FY 26 FY 27 Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 34
Slide 36: Robust Free Cashflows
Robust Free Cashflows Days Sales Outstanding (DSO) FY25 Free Cash Flow Dividend as a percentage of FCF 97 96 85% 70% 92 122% Free Cash Flow (FCF) generated 88 as a percentage of Profit After Tax FY24 FY25 FY22 FY23 FY24 FY25 Endeavor to distribute at least 85% of FCF generated over 5 years to shareh
Slide 37: Portfolio Integration
Portfolio Integration Front Office Middle Office Back Office 100% 90% 60% • Sales Integration • Capabilities • Systems - ERP • Go-to-Market Alignment • Scalable Service Delivery • Support Functions Consolidation Critical component of large $50 Mn + deals won off back transformation deal won of capab
Slide 38: Above Normal Investments Driving Long-term, Profitable Growth
Above Normal Investments Driving Long-term, Profitable Growth Service Line Capabilities Ecosystem Productivity • Engineering Services • Hyperscalers • Internal platforms • Digital Enterprise Apps • Niche domain specific • People supply chain • Next Gen (Cloud, D&A, AI) • Industry analysts • Consulti
Slide 39: Key Takeaways
Key Takeaways Confident of making transformation progress, even amidst macroeconomic challenges Margin growth has been sustained, driven by strong operational execution from Project Fortius – even amid flattish overall growth Deal win rates have significantly improved over the last four quarters Con
Slide 40: Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved.
Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 39
Slide 41: But Most Importantly…
But Most Importantly… Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 40
Slide 42: Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved.
Company Confidential | Copyright © 2025 Tech Mahindra. All rights reserved. 41
Slide 43: Earnings Presentation Q4 FY'25
+ > + > Earnings + + + + + + + + + + + + + + + + + + + + + + + + + + + > + > + > + + + + + + + + Presentation + + + + + + + + + + + + + + + + + + + Q4 FY’25 March 2025 Copyright © 2025 Tech Mahindra. All rights reserved. 1
Slide 44: Q4 FY25 Snapshot
Q4 FY25 Snapshot $ 1,549 Mn 8.7% $ 150 Mn Revenue PAT Margin Free Cash flow 10.5% $ 798 Mn EBIT Margin Net New Deal Wins + + + + + + > > + + + + Copyright © 2025 Tech Mahindra. All rights reserved. 2
Slide 45: Q4 FY25 Snapshot (YoY)
Q4 FY25 Snapshot All trends are YoY, except where specified FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount Americas IT 0.0% 148,731 1.1% -4.7% ( up 3,276) (up 0.3% cc) EBIT % IT LTM attrition BPS Europe 10.5% 11.8% -5.5% 5.1% (up 310 bps) (up 180 bps) Utilisation PAT % ROW (incl. trainees
Slide 46: Q4 FY25 Snapshot (QoQ)
Q4 FY25 Snapshot All trends are QoQ, except where specified FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount Americas IT -1.2% 148,731 -0.3% -5.9% (down 1,757) (-1.5% cc) EBIT % IT LTM attrition BPS Europe 10.5% 11.8% -5.8% 6.3% (up 40 bps) (up 60 bps) PAT % Utilisation ROW 8.7% (incl. trai
Slide 47: FY25 Snapshot
FY25 Snapshot $ 6,264 Mn 8.0% $ 613 Mn Revenue PAT Margin Free Cash flow 9.7% $ 2.7 Bn EBIT Margin Net New Deal Wins + + + + + + > > + + + + Copyright © 2025 Tech Mahindra. All rights reserved. 5
Slide 48: FY25 Snapshot
FY25 Snapshot All trends are YoY FINANCIAL OPERATIONAL SEGMENT GEOGRAPHY Revenue Headcount Americas IT -0.2% 148,731 -0.3% -2.4% (up 3,276) (up 0.3% cc) EBIT % IT LTM attrition BPS Europe 9.7% 11.8% 0.2% 0.1% (up 360 bps) (up 180 bps) Utilisation PAT % ROW (incl. trainees) 8.0% 86.1% 4.1% (up 350 bp
Slide 49: Vertical Performance Q4 FY25 and FY25
Vertical Performance Q4 FY25 Banking, Financial Technology, Retail, Healthcare & VERTICALS Communications Manufacturing Services & Media & Transport Others Lifesciences Insurance Entertainment & Logistics % SHARE 33.2% 17.0% 16.7% 13.2% 8.1% 7.3% 4.5% % YoY -2.2% -5.5% 6.0% -4.1% 10.3% 2.3% 12.3% %Q
Slide 50: Management Commentary
Management Commentary This year, we laid a strong foundation for our transformation journey. Through strategic investments in our people, leadership, and capabilities, we have positioned ourselves to accelerate our strategic roadmap. Our deal wins at $2.7 billion, reflect a 42% year-on-year increase
Slide 51: Deal-Win Performance
Deal-Win Performance Total TCV Q4 FY25: $ 798 Mn Signed a lab asset takeover deal with a Secured a milestone deal in the Compute Selected by a global leader in enterprise Tier-1 Telco in US. Deal positions us as one Infrastructure space with a leading US- apps to provide managed TechOps services of
Slide 52: Strategic Highlights: AI
Strategic Highlights: AI Solution Launches and Updates Strategic Collaboration Tech Mahindra and NVIDIA Drive Enterprise AI Innovation Tech Mahindra Bridges India's NVIDIA & Tech Mahindra: Collaborate to Advance Drug Tech Mahindra Integrates IndusQ Language Gap with AI - Pioneering the Future of Saf
Slide 53: Strategic Highlights: Brand Awareness & Perception
Strategic Highlights: Brand Awareness & Perception The 2025 World Economic Forum is Opening of Inauguration of Inauguration of Inauguration of historic in Americas new APJ BPS’s newest Manufacturing Tech Mahindra's story as Headquarters in corporate office office in Mumbai Xperience Center we unveil
Slide 54: Other Highlights
Other Highlights NEW LAUNCHES, PARTNERSHIPS & COLLABORATIONS Tech Mahindra announced the launch of Tech Mahindra inaugurated an advanced Tech Mahindra built a pharmacovigilance its ‘TechM Consulting’ service line. The Manufacturing Xperience Centre at its (PV) autonomous solution with NVIDIA AI serv
Slide 55: Other Highlights
Other Highlights NEW LAUNCHES, PARTNERSHIPS & COLLABORATIONS Rakuten Symphony signed MoUs with Tech Tech Mahindra secured the first-ever Tech Mahindra, Optus, Microsoft and Mahindra, Cisco Systems and Airspan licensing agreement for Cricket Wireless, an Databricks partnered to implement a Networks,
Slide 56: Awards & People Highlights
Awards & People Highlights STRENGTH & ATTRITION AWARDS – Received the Guidewire PartnerConnect Cloud Ready - AMER specialisation and the PartnerConnect BillingCenter, ClaimCenter, and PolicyCenter - APAC specialisations. – Achieved formal validation for Net-Zero targets by the Science Based Targets
Slide 57: Analyst Recognitions
Analyst Recognitions – Leader in SAP Ecosystem Partners 2025 -SAP S4HANA System Transformation - Large Accounts - (Germany & APAC), Managed Cloud Services for SAP ERP (APAC), SAP Application Managed Services (US, UK and Brazil), RISE with SAP Implementation Partners (Global), SAP SuccessFactors HXM
Slide 58: Financial Snapshot Q4 FY25
Financial Snapshot Q4 FY25 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 1,567 452 452 136 1,548 1,549 418 159 163 116 114 79 Q4'24 Q3'25 Q4'25 Q4'24 Q3'25 Q4'25 Q4'24 Q3'25 Q4'25 Q4'24 Q3'25 Q4'25 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 22.6% 13.2 20.2% 11.1 199 949
Slide 59: Operational Snapshot Q4 FY25
Operational Snapshot Q4 FY25 HEADCOUNT UTILISATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 151,358 148,731 145,455 86.4% 85.6% 86.3% 11.2% 11.8% 10.0% 25.2% 22.7% 22.1% Q4'24 Q3'25 Q4'25 Q4'24 Q3'25 Q4'25 Q4'24 Q3'25 Q4'25 Q4'24 Q3'25 Q4'25 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+
Slide 60: Financial Snapshot FY25
Financial Snapshot FY25 REVENUE ($ Mn) GROSS PROFIT ($ Mn) EBIT ($ Mn) PAT ($ Mn) 6,277 6,264 1,761 502 1,555 607 380 284 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 DILUTED EPS (Rs) FCF ($ Mn) CASH & EQUIVALENTS ROCE % ($ Mn) 47.9 676 21.3% 613 949 896 26.6 12.5% FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25
Slide 61: Operational Snapshot FY25
Operational Snapshot FY25 HEADCOUNT UTILISATION IT ATTRITION (LTM) HEADCOUNT MIX (including trainees) (Onsite) 145,455 148,731 86.4% 26.2% 86.1% 11.8% 10.0% 23.3% FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO 26.6% 1,172 1,162 24.5% 25 92 88 23 FY24 FY25 FY
Slide 62: Other Financial Highlights
Other Financial Highlights CASH CONVERSION TREASURY OTHERS Q4’25 Free cash flow $150 M Hedge book $ 2.0 Bn Q4’25 Tax rate 22.0% FY25 Free cash flow $613 M FY25 Tax rate 24.8% Final Dividend @ Rs. 30 per share Q4’25 USD/INR average exchange rate 86.53 Dividend for the year @ Rs. 45 per share + + + +
Slide 63: Financial Summary Q4 FY25
Financial Summary Q4 FY25 in $ Mn Q4FY25 QoQ YoY Revenue 1,549 -1.2% 0.0% EBIT 163 2.8% 43.6% EBIT % 10.5% Other Income 20 940.8% -55.5% + + Miscellaneous + Interest Income 24 > > Exchange Gain / (Loss) (4) + + Profit Before Tax 170 11.4% 47.6% Provision for tax 37 Profit After Tax 136 17.3% 70.8% P
Slide 64: Financial Summary FY25
Financial Summary FY25 in $ Mn FY25 YoY Revenue 6,264 -0.2% EBIT 607 60.0% EBIT % 9.7% Other Income 101 -8.2% + + Miscellaneous + Interest Income 130 > > Exchange Gain / (Loss) (28) + + Profit Before Tax 668 71.8% Provision for tax 166 Profit After Tax 502 76.7% PAT % 8.0% EPS (Basic) in Rs 48.00 EP
Slide 65: Company Confidential Copyright © 2025 Tech | Mahindra.
Company Confidential Copyright © 2025 Tech|Mahindra. CopyrightAll © 2024 rightsTech reserved. Mahindra. All rights reserved. 24 24