Tech Mahindra headcount falls by nearly 2,000 in Q4 FY26

In the latest quarter of FY26, Tech Mahindra has witnessed a reduction in its workforce by nearly 2,000 employees as part of its strategic restructuring aimed at enhancing operational efficiency. By the end of March, the company's total headcount stood at 147,623, reflecting a decline of 1,993 from the previous quarter's figure of 149,616, as detailed in their earnings report released on April 22. Compared year-on-year, the workforce has decreased by 1,108 individuals. The decrease in headcount was evident across all employee categories. Specifically, the IT segment saw a drop of 817 employees, bringing the total to 75,377, while the Business Process Services (BPS) division experienced a reduction of 1,120, ending with 64,330 employees. Meanwhile, the sales and support teams saw a slight decline of 56, resulting in a total of 7,916. Despite the workforce reduction, the company reported a robust operating performance for FY26, with a remarkable 16.04% increase in consolidated net profit for the March quarter, amounting to ₹1,353.8 crore compared to ₹1,166.7 crore a year earlier. Mohit Joshi, the Managing Director and CEO, emphasized the company's commitment to transitioning into an AI-driven organization, noting significant recent deal wins that have exceeded $1 billion for consecutive quarters. Chief Financial Officer Rohit Anand highlighted that FY26 marked the conclusion of their transformation's Stabilization Phase, with profit margins expanding for the tenth consecutive quarter, despite a challenging economic landscape. In alignment with a disciplined approach to capital allocation, Tech Mahindra raised dividends by over 13%, bringing the total for the year to ₹51 per share, the highest in the company's history. Operational revenues also saw an increase, rising by 12.64% year-on-year to ₹15,076.1 crore in Q4 FY26, up from ₹13,384 crore in the corresponding period last year. Total expenses increased by 8.18% to ₹13,080.7 crore during the same quarter, compared to ₹12,091.3 crore last year. The company's profitability saw a significant boost, with EBIT surging 39.2% year-on-year to ₹7,152 crore. Additionally, new deal wins for the year totaled $3,794 million, marking the company's highest performance in five years and a 41.6% increase compared to the previous year.