Tech Mahindra Reports 1,993 Layoffs in Q4, Attrition Rate Eases
Tech Mahindra Reports Q4 FY26 Results Amid Focus on Restructuring
Tech Mahindra's headcount decreased by 1,993 sequentially in the fourth quarter ended March 31, 2026, as part of the company's efforts to improve utilisation rates and margins. This decline is a continuation of the company's focus on business restructuring under its new management team, aiming to increase operating margins.
According to the company's statement on April 22, the total workforce strength now stands at 1,47,623, down 1,108 from the previous year. The company's last twelve-month (LTM) attrition rate has dropped to 12.1 percent from 12.3 percent in the previous quarter.
In comparison to its rivals, Tata Consultancy Services (TCS) reported a headcount increase of 2,356 in Q4, while HCLTech added 802 employees and Wipro's headcount marginally increased by 135 sequentially in Q4.
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| Company | Headcount Increase (Q4) |
|---|---|
| Tata Consultancy Services (TCS) | 2,356 |
| HCLTech | 802 |
| Wipro | 135 |
Tech Mahindra is accelerating its transition to an AI-led organization, aiming to integrate AI to improve workforce productivity. The company has also reported its highest deal wins in recent years, including consecutive quarters exceeding $1 billion.
The company's Q4 FY26 results, announced on April 22, showed a net profit of Rs 1,353.8 crore, a 20.7 percent increase quarter-on-quarter. Consolidated revenue from operations for the January-March quarter rose 4.7 percent to Rs 15,076.1 crore, beating the poll estimate of Rs 14,804 crore. EBIT margin improved to 13.8 percent, from 13.1 percent in the previous quarter.
The company also announced a final dividend of Rs 36 per equity share for FY26, taking the total dividend for the year to Rs 51 per share, including the interim payout.
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Key Highlights of Tech Mahindra's Q4 FY26 Results
- Net profit: Rs 1,353.8 crore (20.7% qoq increase)
- Consolidated revenue from operations: Rs 15,076.1 crore (4.7% qoq increase)
- EBIT margin: 13.8% (up from 13.1% in the previous quarter)
- Profit after tax: 16% on-year increase
- Earnings per share: Rs 15.24
- Final dividend: Rs 36 per equity share for FY26
Investor Takeaway
Tech Mahindra's focus on improving utilisation rate and margins may impact its hiring strategy and workforce productivity.
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