Pune: Tech Mahindra has reported better-than-expected Q4 results, posting a consolidated net profit of ₹1,354 crore, a 21% rise quarter-on-quarter (QoQ), beating most analyst estimates. The company’s revenue increased 7.2% year on year (YoY) to ₹ 56,815 crore as well. Additionally, the board declared a final dividend of ₹36 per equity share, underscoring the company’s strong cash position despite a volatile global macro environment.
Workforce Dynamics and Utilization
The company’s attrition rate has remained stable so far at 12.1%, down from 12.9% in the previous quarter, even as its headcount declined by 1,993 employees during the quarter. The management has attributed the profit increase to a sharper focus on increasing utilization rates, improving the company’s existing talent pool rather than engaging in lateral hiring.
Vision 2027: The Three-Year Turnaround
These results coincide with the company’s business restructuring plan, with the core aim to increase operating margins. This has been reflected in its quarterly deal wins, which has remained above the $1 billion mark for a few quarters, as the Pune-based company works to improve client spending and conversion.
Moving ahead, the company is now looking to achieve an EBIT margin of 15% by FY27 by cutting costs and boosting quick decision-making. It is also aiming to boost internal innovation through ‘Project Forticus’ as it looks to integrate AI-led transformation for enterprise clients.
“We are accelerating our transition to an Al-led organisation, embedding Al 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 deliver our FY27 commitments.” Tech Mahindra CEO Mohit Joshi said.
