Tech Mahindra saw profit jump 76.51% to Rs 1166.70 crore during the final quarter of FY25. The company board recommended a final dividend of Rs 30 per equity share of the face value of Rs 5 each (600 per cent) for the financial year ended 31st March. The total headcount stood at 148,731 — down 1,757 QoQ and up 3,276 YoY. The LTM IT attrition stood at 11.8%
According to a regulatory filing, the total headcount stood at 148,731 in Q4FY25 after a quarter-on-quarter decline of 1,757 employees. The numbers for Q4 included 80,609 software professionals, 59,636 BPS professionals, and 8,486 sales and support employees. The last twelve months attrition rate for IT segment stood at 12% while IT utilisation remained at 86%.
The company hired 6,100 freshers in FY26, but the management refrained from sharing a guidance on the number for the new fiscal year, saying the quantum will depend on the demand situation and there is a likelihood that it goes up.
The IT services firm reported a smaller-than-expected fourth quarter revenue due to persistent weakness in its communications and hi-tech verticals. Tech Mahindra has been under pressure due to its substantial dependence on the communications vertical (whose revenue is tied to macroeconomic conditions) as it undergoes a turnaround under CEO Mohit Joshi. The vertical — which gives Tech Mahindra over a third of its revenue — fell 2.2% on year during the quarter with Joshi attributing the development to industry headwinds “due to a prolonged downturn in the sector”.
The overall cash and equivalent component stood at $896 million as on March 31.Tech Mahindra posted an 80% jump in consolidated profit during FY25 — from Rs 2,357.8 crore to to Rs 4,251.5 crore. The company board also recommended a dividend of Rs 30 per share, taking the overall outgo to Rs 45 per share for the fiscal year.
“This year we delivered operational excellence by achieving a 60% increase in operating profit through strong execution, operational leverage, and cost management. We raised our dividend per share by 12.5% and returned 85% of our free cash flow to shareholders, reflecting our commitment to capital allocation policy,” said Chief Financial Officer Rohit Anand.