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NIFTY23,4060.33%
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Tech Mahindra Delays Onboarding of Over 1,000 Engineering Graduates

Key Highlights

  • 1,000+ engineering graduates from the 2025 batch in Maharashtra are yet to receive their offer letters from Tech Mahindra due to slowed fresher hiring in FY26.
  • Tech Mahindra's hiring strategy has shifted to improve operating margins and utilization amid a challenging macroeconomic environment.
  • The company's CEO, Mohit Joshi, has stated that Tech Mahindra will hire fewer freshers in FY26 as compared to the previous fiscal year.

Background

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Tech Mahindra has delayed the onboarding of over 1,000 engineering graduates from the 2025 batch in Maharashtra. These graduates had cleared several rounds of aptitude tests and technical and HR interviews between January-February 2025, but have yet to receive their offer letters. The delay has been attributed to Tech Mahindra's slowed fresher hiring in FY26, which is aimed at improving operating margins and utilization.

Industry-Wide Issue

Fresher onboarding delays have been an industry-wide issue in recent years, with companies such as Wipro, Tata Consultancy Services (TCS), and Infosys also experiencing similar issues.

Tech Mahindra's Hiring Strategy

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Under its business turnaround journey until FY27, Tech Mahindra is looking to improve margins and utilization rates internally. The company plans to transform its fixed-price portfolio, which accounts for close to 50% of its revenue, by increasing productivity and redeploying existing talent. Mohit Joshi, CEO and MD, has stated that the company will hire fewer freshers in FY26 as compared to the previous fiscal year, citing the demand environment.

Expected Impact

The delay in onboarding freshers is expected to have a significant impact on the graduates, who have been waiting for over a year for their offer letters. The issue has also been taken up by the Forum for Information Technology Employees (FITE), which has threatened to take the matter to the labour ministry if the issue is not resolved soon.

Investor Takeaway

Investors should be cautious of potential hiring delays in the IT sector.

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