1. Agentic AI platform - 200+ agents announced soon Delivered - At the Q1 FY26 call, management said an agentic AI platform with 200+ agents should be announced "soon enough". TechM Orion launched in Q2 FY26 with 300-plus agents, and by Q1 FY27 more than 350 deployable AI agents were developed.
2. Wage hike cycle - January of last quarter of FY26 Partial - At the Q1 FY26 call, management said the next wage increase cycle would be January calendar year next year, i.e., last quarter of FY26, subject to market conditions. Q3 FY26 brought a US$30 million one-time provision under the new wage code notification, and by Q1 FY27 increases were expected effective Q2 FY27, phased - the January FY26 hike did not occur as planned.
3. DSO improvement - push further down from 88 days Delivered - At the Q4 FY25 call, management said DSO would be pushed further down from 88 days via terms and unbilled-days improvements. DSO rose to 95 days in Q1 FY26, then improved each quarter to 89 days by Q4 FY26 and 84 days by Q1 FY27.
4. US hi-tech client renewal - finalized in short order Missed - At the Q4 FY25 call, management said the delayed US hi-tech client renewal (BPS) was expected "to be finalized in short order" and "will get regularized in the next few months"; Q1 FY26 added the slipped BPM deal should show in Q2 revenues. Instead, Hi-Tech declined 3.3% YoY in Q1 FY26 and a large semiconductor client scaled down operations significantly in Q2 FY26; no renewal finalization is on record.
5. ERP expansion to all portfolio companies - 100% closure by FY26 Partial - At the Q4 FY25 call, management said ERP expansion to all portfolio companies was 60% done, targeting "100 percent closure" next year (FY26). By Q4 FY26, 100% of acquired companies were integrated on frontend and middle office, but backend integration of the last 4-5 companies was pushed to "this year" (FY27).
6. FY26 stabilization - significant sustained acceleration toward FY27 goals Partial - At the Q4 FY25 call, management framed FY26 as the year of "significant sustained acceleration" toward FY27 goals, later conceding the growth plan "is not the way it panned out". FY26 revenue grew 0.6% constant currency while EBIT margin expanded to 12.6% from 9.7% - margin acceleration was significant, growth acceleration modest.
7. FY25 turnaround year - YoY growth turning around from Q1 onwards Missed - At the Q4 FY24 call, management laid out FY25 as the year of turnaround, with year-on-year growth turning around from Q1 onwards. Q1 FY25 revenue was down 2.6% YoY reported, and FY25 closed down 0.2% reported, up 0.3% constant currency - the Q1 turnaround did not occur.
8. Capital allocation policy - at least 85% of FCF distributed over 5 years On track - At the Q4 FY24 call, management announced a Board-approved endeavor to distribute at least 85% of free cash flow over five years via dividends or buyback, reaffirmed in Q2 FY26. FY24 payout was 70% of FCF, FY25 122% and FY26 91%; the 5-year window is not complete.
9. Project Fortius - $250 million average annual benefits On track - At the Q4 FY24 call, management guided Project Fortius would deliver average annual benefits of $250 million over the three years, described as "kind of linear" each year. Fortius contributed \~1.2% to margins in Q1 FY25 and \~70 bps in Q2 FY25, and in Q4 FY26 management scorekept "We've delivered on all of that"; the FY25 annual report cites estimated average annual cost savings of US$250 Mn.
10. FY27 vision - growth above peer average, 15% EBIT margin, ROCE above 30% On track - At the Q4 FY24 call, management set the FY27 vision "Scale At Speed": top-line growth greater than peer average, exceeding 15% EBIT margins and ROCE ahead of 30% by FY27, reiterated through Q1 FY27. In Q1 FY27, revenue grew 6.6% YoY constant currency, ahead of peer average, operating margin was 14.4% and ROCE 28.3%; the FY27 horizon is not yet complete.
11. GenAI skills training - 100% of IT talent in FY25 Missed - At the Q3 FY24 call, Atul Soneja said "We plan to train 100% of our IT talent in AI in FY'25". By Q4 FY26, 80% of people were trained on AI and 76% of the workforce AI certified, with over 65% certified in the AI belt program by Q1 FY27 - the 100% target was not achieved in FY25.
12. Q3 FY24 clean-up completion - Q4 FY24 clean slate Delivered - At the Q2 FY24 call, management said Q3 FY24 would be the last quarter of clean-up of non-core revenues with one-time cost/margin impacts, and Q4 could be a "clean slate". Q3 FY24 carried exceptional items of 160 bps, while Q4 FY24 had a negligible net P&L impact from impairment assessment and operating margin of 7.4%, up 200 bps QoQ.
13. FY25 margin improvement - "Yes, absolutely. For sure." Delivered - At the Q2 FY24 call, asked whether FY25 should be a year of margin improvement, Mohit Joshi answered "Yes, absolutely. For sure.". FY25 EBIT margin came in at 9.7%, up 360 bps from FY24's 6.1%.
14. New organization structure - go live 1st January 2024 Delivered - At the Q2 FY24 call, management committed the new organization structure (six SBUs, eight service lines, verticalized delivery) would go live effective 1st January 2024. In Q3 FY24 the delivery organization was centralized and the 6x6 matrix implemented earlier that month with over 70,000 IT professionals transitioned.
15. FY24 recovery - recovery within FY24 Missed - At the Q4 FY23 call, CP Gurnani said "My personal belief is that this phase is temporary, and we will see a recovery within FY24", reiterated in Q1 FY24 as first half tough, second half recovery. FY24 revenue declined 4.7% in constant currency and EBIT margin fell to 6.1% - no recovery occurred in FY24.
16. Large deal TCV - $700 million to $1 billion per quarter Partial - At the Q1 FY23 call, management reiterated the focus to deliver between $700 million to a billion dollars of deal conversions (TCV) every quarter, later restating a $600 to $800 million working range at Q4 FY25. TCV fell below the original range in several quarters - $592 million in Q4 FY23, $359 million in Q1 FY24, $381 million in Q3 FY24 - but the last three quarters exceeded $1 billion: $1,096 million in Q3 FY26, $1,073 million in Q4 FY26 and $1,078 million in Q1 FY27.
17. BPS growth - more than 5% quarter-over-quarter every quarter Missed - At the Q2 FY23 call, management said the BPS business is positioned to drive "more than 5% quarter-over-quarter growth" every quarter. Q3 FY23 delivered a record with \~$20 million of \~$30 million incremental revenue from BPO, but BPS was -5.8% QoQ in Q4 FY25 and flat QoQ in Q1 FY27.
18. Portfolio pruning - $100-120 million annualized revenue impact by Q4 FY23 Partial - At the Q2 FY23 call, management targeted $100-$120 million annualized revenue impact from divestment/discontinuation actions, with \~$60 million already executed and the rest "in the next two quarters" (by Q4 FY23). Almost half the $120 million target was executed in Q2 with limited incremental impact in Q3, and another \~$60 million annualized was executed in Q2 FY24; the full amount by Q4 FY23 is not confirmed in the record.
19. Subcon cost reduction - toward less than 10% of revenue On track - At the Q1 FY24 call, management reiterated the target of reducing subcontracting cost from 16% of revenue (then \~14%) toward "less than 10%", later guiding a long-term band of 8% to 10% in Q1 FY26. Subcon cost had fallen from 16% to 14% over the prior three-four quarters and hit a decade low as % of revenues by Q3 FY24; no explicit sub-10% achievement is disclosed.
20. Offshoring improvement - 4-5% medium-term headroom On track - At the Q1 FY23 call, management noted an 8%-10% gap in offshoring revenues versus the peer set and committed to by-delivery-unit and by-geo actions, reiterating a 4%-5% improvement opportunity in the medium term. Offshore headcount mix for IT services rose \~300 bps YoY in Q2 FY25, and by Q1 FY27 the IT mix was 22.5% onsite, 77.5% offshore; no quantified read against the 4-5% target exists.
21. Utilization improvement - to 87-88% through FY23 Delivered - At the Q1 FY23 call, management guided utilization would increase from the 82%-83% range to 87%-88% through the year. Utilization returned to 85% in Q2 FY23 and stood at 87% by Q1 FY24, one quarter after FY23 ended.
22. FCF conversion - return to 90-110% within two quarters Partial - At the Q1 FY23 call, management guided FCF conversion would return to the historical range of 90%-110% "between the next two quarters" (Q2-Q3 FY23). Q2 FY23 FCF was $253 million, 159% of PAT, while Q3 FY23 FCF was $31 million, 20% of PAT, with year-to-date \~80% of PAT.
23. FY23 margin recovery - sequential improvement to \~14% EBIT exit rate Missed - At the Q1 FY23 call, management guided margin would increase sequentially every quarter by 100-150 bps from the Q1 bottom, with a Q4 exit run-rate EBIT margin around 14%, revised down from the earlier 15%; the firm target was softened in Q3 FY23. Margins moved 11%, 11.4%, 12% and then 11.2% in Q4 FY23 - the 14% exit was not reached.
24. Normalized tax rate - \~26% range going forward Delivered - At the Q4 FY22 call, management guided the normalized tax rate would be in the range of about 26% under the new tax regime, later refined to 26%-27% and \~27% for FY26. Quarterly rates tracked the band - 26.2% in Q4 FY23, 26.6% in Q1 FY25, 27% full-year FY26, 27.2% in Q1 FY27 - with one-offs explaining deviations like 22% in Q4 FY25.
25. CTC acquisition - EBIT-accretive, EPS/FCF/ROCE-accretive, immediate closing Delivered - At the Q3 FY22 call, management stated the CTC acquisition (100% of Com Tec Co IT Ltd) would be accretive to TechM EBIT margins, across EPS, FCF and ROCE, with "immediate closing". The acquisition completed mid-January 2022, and by Q2 FY23 management said the acquired assets are "performing very close or better to the business case".