Tech Mahindra Q4 Results: Headcount falls by 1,993 as IT giant pushes for AI-driven efficiency
IT services giant Tech Mahindra’s headcount decreased by 1,993 in the quarter ended March 31, 2026. Additionally, the company noted in its April 22 earnings report that its workforce shrank by 1,108 on an annual basis in FY26.
The current total workforce is 147,623, the majority of which are IT workers. 77.8% of IT employees were offshore workers, while the rest worked in the field. The company’s trailing twelve months (LTM) attrition rate decreased marginally to 12.1% in Q4 FY26 from 12.3% in Q3.
“We are accelerating our transition to an AI-led enterprise, embedding AI in services and expanding capabilities to increase value delivery to our customers. This is reflected in our highest deal wins in recent years, including consecutive quarters exceeding $1 billion. We continue to focus on scaling with discipline and remain on track to deliver on our FY27 commitments,” Tech Mahindra CEO Manoj Joshi said in a statement.
Degrowth and Artificial Intelligence
Meanwhile, rivals Tata Consultancy Services (TCS) reported an increase in headcount by 2,356 in Q4, HCLTech added 802 employees and Wipro’s headcount increased marginally by 135 sequentially in Q4. money control.
The Pune-based IT giant aims to increase operating margins, which inadvertently leads to a change in the company’s hiring strategy; It recruits selectively while integrating artificial intelligence to increase workforce productivity.
Management highlighted a growing shift toward an AI-driven operating model with deeper integration of AI across service lines and distribution platforms.
“FY26 marked the end of the Stability Phase of our transformation journey, with margins expanding for the 10th consecutive quarter despite the challenging macro environment. In line with our disciplined capital allocation framework and commitment to our shareholders, we increased the dividend by over 13%, increasing total dividends declared for the year by over 13%. ₹51 per share, our highest ever,” said Tech Mahindra CFO Rohit Anand.
4th Quarter Results
On the business front, the company maintained strong deal momentum; Quarterly deal wins have continued to exceed $1 billion in successive quarters. This reflects improvement in customer spend and better deal conversion. The company has signed several large, multi-year contracts, including AI-led transformation and managed services agreements in the telecommunications, BFSI, manufacturing and energy segments.
The IT giant reported a nearly 19% year-on-year increase in consolidated profit. ₹1,356 crore in the quarter ended March 31. Company’s profit in the same quarter last year ₹1142 crore.
Tech Mahindra reported an operating-level EBIT of: ₹2,084 crore for the quarter, recording a sequential increase of 10.2% and a sharp year-on-year growth of 48.3%. EBIT margin increased to 13.8%. Earnings per share realized so far ₹15.24.
