The firm said it expects the margins to improve only by the third quarter of the current fiscal, 2015-16. "Q1 FY16 has some headwinds and tailwinds, which could see a risk of marginal decline in both revenue and EBITDA margin on a sequential basis," the Mumbai-headquartered firm said in a regulatory filing.

"Seasonally weak mobility business will be a drag on Q1 (April-June of 2015-16) revenue and EBITDA. H1 B visa costs will be another drag on margins," the firm said. It added however that favourable currency movements could help both revenue and margins.

A senior official employed with a top IT services firm said on the condition of anonymity that the first quarter is expected to be a weak one for almost all the IT firms. Tech Mahindra's anticipating an impact on its revenue and margins has been doing rounds in the market for some time and almost all the software services exporters are expected to be hit in April-June, he said.

"Due to macroeconomic headwinds, several clients in the US and Europe have been approaching their IT spending with caution and they are not committing a very large amount in one go. This affects the IT firm's accounting as only the released amount can be put on the balance sheets, though it may be part of a large deal," the official cited.

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