Tech Mahindra Sees Q4 Workforce Reduction Amid AI Efficiency Efforts

Tech Mahindra Reports Q4 FY26 Earnings, Sees 19% YoY Rise in Consolidated Profit

Tech Mahindra, a leading IT services major, has reported a 19% year-over-year (YoY) rise in its consolidated profit to ₹1,356 crore for the quarter ending 31 March 2026. The company's workforce has shrunk by 1,993 in the quarter and 1,108 YoY for FY26, with the current total workforce standing at 147,623.

The majority of Tech Mahindra's employees are IT employees, with 77.8% working offshore and the remaining working 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.

Comparison of Q4 FY26 Headcount Growth

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Tech Mahindra's CEO, Manoj Joshi, stated that the company is accelerating its transition to an AI-led organization, embedding AI across services and expanding its capabilities to enhance value delivery for its clients. The company has reported its highest deal wins in recent years, including consecutive quarters exceeding $1 billion.

The company is aiming to increase its operating margins, which has led to a shift in its hiring strategy – recruiting selectively while integrating AI to improve workforce productivity. Tech Mahindra's management highlighted a growing shift towards an AI-driven operating model, with deeper integration of AI across service lines and delivery platforms.

FY26 Results

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FY26 marked the end of the Stabilization Phase of Tech Mahindra's transformation journey, with margins expanding for the 10th consecutive quarter despite a challenging macro environment. The company increased the dividend by over 13%, taking total dividends declared for the year to ₹51 per share, its highest ever.

Q4 FY26 Financial Highlights

The company secured several large, multi-year contracts across telecom, BFSI, manufacturing, and energy segments, including AI-led transformation and managed services deals. Tech Mahindra's IT major reported an EBIT of ₹2,084 crore for the quarter, registering a 10.2% sequential rise and a sharp 48.3% YoY growth.