Tech Mahindra Q1 Attrition Rate Rises To 12.8%, IT Headcount Drops By 622 Employees

Tech Mahindra announced its April-June quarter results for current fiscal (Q1FY26) on Wednesday, July 16, and reported an attrition rate of 12.8%, compared to 11.8% in the preceding March quarter of previous fiscal (Q4FY25). India's fifth-largest information technology (IT) services company's total headcount stood at 1.48 lakh employees.

The attrition rate measures the rate at which employees leave a company over a period of time. A lower rate is generally considered healthy for a company. According to Tech Mahindra's regulatory filing to the stock exchanges, the total employee headcount rose by 897 to 1,48,517 employees in Q1FY26 compared to the year-ago period.

Tech Mahindra's 12-month attrition rate of 12.8% in the quarter-under-review was higher than 10.1% reported in the year-ago period. The utilization stood at 85% compared to 86.3% in the preceding March quarter.

Notably, the software services company's IT headcount dropped sequentially by 622 employees to 79,987 in the June quarter, compared to 80,609 employees in the preceding March quarter.

On a year-on-year (YoY) basis, the IT headcount dropped by 430 employees, compared to 80,417 in Q1FY25. Additionally, the total employee headcount fell by 214 employees sequentially in the June quarter, compared to 1,48,731 reported in the preceding March quarter of FY25.

Tech Mahindra Ltd.'s profit for the April-June period fell 2.2% on a sequential basis, meeting analysts estimates. The software services provider's bottom line stood at Rs 1,140 crore during the first quarter of the financial year ending March 2026, compared to Rs 1,378 crore clocked in the preceding quarter.

Analysts tracked by Bloomberg had pegged the profit at Rs 1,198 crore. Tech Mahindra's EBIT went up by 7% to Rs 1,477.10 crore from Rs 1,378 crore. (versus Bloomberg estimate: Rs 1,480 crore). The EBIT margin expanded by 80 basis points to 11.1% from 10.3% (versus Bloomberg estimate: 11.02%).