IT services major Tech Mahindra’s headcount decreased by 1,993 in the quarter ending 31 March 2026. Besides, the workforce has shrunk by 1,108 YoY for FY26, the company stated in its earnings report on 22 April.
The current total workforce stands at 147,623, with the majority being IT employees. 77.8% of the IT employees were offshore employees, while the remaining worked onsite. The company’s last twelve-month (LTM) attrition rate has dropped marginally from 12.3% in Q3 to 12.1% in Q4 of FY26.
In a statement, Tech Mahindra CEO Manoj Joshi said, “We are accelerating our transition to an AI-led organization, embedding AI across services and expanding our capabilities to enhance value delivery for our clients. This is reflected in our highest deal wins in recent years including consecutive quarters exceeding $1 billion. We remain focused on scaling with discipline and are on track to delivering our FY27 commitments.”
Downsizing and AI
Meanwhile, rivals Tata Consultancy Services (TCS) reported a headcount increase of 2,356 in Q4, HCLTech added 802 employees and Wipro’s headcount marginally increased by 135 sequentially in Q4, as per Moneycontrol.
The Pune-headquartered IT giant is aiming to increase its operating margins, which has inadvertently led to a shift in the company’s hiring strategy—recruiting selectively while integrating AI to improve workforce productivity.
The management highlighted a growing shift towards an AI-driven operating model, with deeper integration of AI across service lines and delivery platforms.
“FY26 marked the end of the Stabilization Phase of our transformation journey, with margins expanding for the 10th consecutive quarter despite a challenging macro environment. In line with our disciplined capital allocation framework and commitment to our shareholders, we increased the dividend by over 13%, taking total dividends declared for the year to ₹51 per share, our highest ever,” said Rohit Anand, Tech Mahindra CFO.
Q4 Results
On the business front, the company maintained strong deal momentum, with quarterly deal wins continuing to exceed the $1 billion mark for successive quarters. This reflects improving client spending and better deal conversion. The company secured several large, multi-year contracts across telecom, BFSI, manufacturing, and energy segments, including AI-led transformation and managed services deals.
The IT major reported around 19% YoY rise in its consolidated profit to ₹1,356 crore in the quarter ending 31 March. In the same quarter last year, the company's profit was ₹1142 crore.
At the operating level, Tech Mahindra reported an EBIT of ₹2,084 crore for the quarter, registering a 10.2% sequential rise and a sharp 48.3% YoY growth. EBIT margin expanded to 13.8%. Earnings per share came in at ₹15.24.
