Tech Mahindra’s Hiring Numbers Top The Chart In Q2 FY25

Tech Mahindra, one of India’s IT services firms, reported a significant increase in its workforce, adding 6,653 employees in the second quarter (Q2) of FY25, the highest among its industry peers. This growth marks a major hiring push after a reduction in headcount in FY24, and signals a substantial recovery and expansion in its business operations.

The company’s headcount rose to 154,273 by the end of Q2, up from 147,620 in the first quarter. This increase of 6,653 employees includes the hiring of over 2,000 freshers, a step toward meeting its target of adding more than 6,000 freshers for the fiscal year.

The firm's hiring surge follows two consecutive quarters of growth, bouncing back from a workforce reduction of 800 employees in Q4 FY24. Among India’s top five IT services companies, which include Tata Consultancy Services (TCS), Infosys, HCLTech and Wipro, Tech Mahindra’s Q2 hiring was the largest. TCS added 5,726 employees, Infosys 2,456, while Wipro hired 978. HCLTech, however, reported a workforce reduction of 780 employees due to the disposition of a joint venture with State Street.

Tech Mahindra's hiring was accompanied by strong financial performance, exceeding market expectations with a 153.1 per cent year-on-year (YoY) surge in net profit for Q2, reaching Rs 1,250 crore. Sequentially, the net profit grew by 46.8 per cent. The company’s revenue for the quarter stood at Rs 13,313 crore, an increase of 2.4 per cent sequentially and 3.5 per cent YoY.

Despite these numbers, Tech Mahindra’s stock dipped by 0.68 per cent, closing Friday’s trading session at Rs 1,688 per share, even as the BSE Sensex rose by 0.27 per cent. The company's moderate increase in attrition, from 10 per cent to 10.6 per cent, could be a factor, reflecting challenges in employee retention despite the hiring surge.