Tech Mahindra's headcount decreased by nearly 2,000 in the January-March quarter, as the IT services company continued to tighten its workforce in pursuit of higher operating margins under its ongoing business restructuring.

Total headcount at the end of the fourth quarter of FY26 stood at 1,47,623, down 1,993 from 1,49,616 in the previous quarter, according to the company's earnings presentation released on April 22. On a year-on-year basis, the workforce has declined by 1,108.

The sequential fall was spread across all three employee categories. The IT segment headcount decreased by 817 quarter-on-quarter to 75,377, while the BPS division headcount decreased by 1,120 to end at 64,330. Sales and support headcount declined by 56 to 7,916.

The last twelve-month attrition rate eased marginally to 12.1% from 12.3% in the December quarter.

IT utilisation stood at 86.1% in Q4 FY26, broadly flat with the 86.6% recorded in the previous quarter.

Tech Mahindra Q4 results

The headcount reduction comes against the backdrop of a strong operating performance in FY26. The company on Wednesday reported a 16.04 per cent year-on-year (YoY) rise in its consolidated net profit for the March 2025 quarter (Q4 FY26). The IT company posted a profit of Rs 1,353.8 crore for the quarter under review, compared with Rs 1,166.7 crore in the corresponding period last year.

"We are accelerating our transition to an AI-led organisation, embedding AI across services and expanding our capabilities to enhance value delivery for our clients. This is reflected in our highest deal wins in recent years including consecutive quarters exceeding $1 billion. We remain focused on scaling with discipline and are on track to delivering our FY27 commitments," Mohit Joshi, Managing Director and Chief Executive Officer, said.

Chief Financial Officer Rohit Anand said, "FY26 marked the end of the Stabilization Phase of our transformation journey, with margins expanding for the 10th consecutive quarter despite a challenging macro environment. In line with our disciplined capital allocation framework and commitment to our shareholders, we increased the dividend by over 13%, taking total dividends declared for the year to ₹51 per share, our highest ever."

Revenue from operations also saw an uptick, rising 12.64 per cent YoY to Rs 15,076.1 crore in Q4 FY26 from Rs 13,384 crore in the year-ago period.

On the cost front, total expenses increased by 8.18 per cent to Rs 13,080.7 crore in the March quarter, against Rs 12,091.3 crore in the same period last year.

The company reported a sharp improvement in profitability, with EBIT jumping 39.2 per cent YoY to Rs 7,152 crore.

New deal wins for the year totalled $3,794 million in total contract value, the company's highest in five years, up 41.6% year-on-year.