Tech Mahindra's latest financial results reveal how artificial intelligence is transforming the IT services sector, enabling companies to grow profits while strategically managing workforce size through automation.
On July 16, 2025, Tech Mahindra reported a 34% year-on-year increase in net profit to Rs 1,140 crore for Q1 FY26, despite a marginal 0.2% sequential revenue decline. The company's EBITDA rose 3.6% quarter-on-quarter to Rs 1,935 crore, reflecting improved operational efficiency through AI implementation.
Significantly, Tech Mahindra reported a total headcount of 148,517 employees, representing an increase of 897 people year-on-year, while maintaining a relatively stable attrition rate of 12.6%. This modest headcount growth alongside substantial profit increases demonstrates the 'non-linearity' between revenue growth and staffing that AI enables.
The company's 'AI Delivered Right' strategy, unveiled in April 2025, has been central to this transformation. The three-pronged approach focuses on productivity through intelligent automation, innovation through advanced AI capabilities, and assurance through responsible AI practices. Tech Mahindra is addressing the AI skills gap through targeted reskilling, aiming to train its entire workforce on AI fundamentals by the end of FY26.
"Companies are applying AI to detect problems automatically without human intervention, increase productivity and efficiency of the existing workforce, and even increase revenue without reducing headcount," explained a Tech Mahindra executive in a recent statement.
The broader stock market on July 17, 2025, reflects similar AI-driven trends across the technology sector. Global markets showed resilience despite initial concerns about U.S. Federal Reserve policies, with AI-focused companies like NVIDIA, Microsoft, and xAI driving innovation and investment opportunities.
According to recent market analyses, AI investment is forecast to approach $200 billion globally by 2025, with the overall AI market projected to reach $243.70 billion this year and grow at a CAGR of 27.67% through 2030. Financial experts recommend portfolio diversification and leveraging affordable financial planning tools to position for success in this AI-driven market environment.