Tech Mahindra reported a 53.3% year-over-year rise in Q1 FY27 EBIT to ₹2,264 crore, supported by $1.078 billion in new deal wins, a 33% increase from the previous year. The company is using AI agents to help clients reduce legacy technology debt, with internal testing and client engagements suggesting a 30-35% reduction in legacy technology burdens and significant productivity gains. Tech Mahindra has introduced a token-based pricing model combining AI automation with human oversight to manage costs and protect margins. The management aims to achieve a 15% EBIT margin by FY27, with investors monitoring how the company balances this target amid macroeconomic challenges and client hesitation in markets like North America. Operational risks include ensuring AI-led solutions are fully auditable and secure within legacy enterprise systems. As of early August 2026, the stock has been trading in the ₹1,650–₹1,660 range.