Tech Mahindra will restart campus hiring as revenue visibility improves following a strong June quarter. The company reported a net profit of ₹1,486 crore, marking a 31.6% year-on-year increase. Investors are tracking how the firm balances this new recruitment with a ongoing strategy of using artificial intelligence to drive productivity.
Tech Mahindra is restarting its campus recruitment program, signaling a change in talent strategy as the company reports better revenue visibility. CEO Mohit Joshi confirmed the decision during the company's latest quarterly earnings call, marking a pivot from a period where hiring was paused due to uncertain demand. This development comes as the company balances its need for new talent with ongoing efforts to integrate artificial intelligence across its service delivery models.
Financial Performance and Growth Trends
In the quarter ending June 2026, the company posted a net profit of ₹1,486 crore, a 31.6% rise compared to the same period last year. Revenue for the quarter reached ₹15,711 crore, representing a 17.6% increase. A key highlight for investors is the improvement in operational efficiency, with EBIT margins expanding by 60 basis points sequentially to reach 14.4%. Management has reiterated its objective of achieving a 15% margin target by the end of fiscal year 2027.
Workforce Dynamics and AI Integration
The company’s path to growth involves careful management of its workforce. The total workforce, including BPS and sales, currently stands at 1.46 lakh employees, reflecting a sequential decline of 863 people. This marks the third straight quarter of headcount reduction. While the company is scaling back in some areas through natural attrition, the decision to resume campus hiring suggests a move to bring in fresh talent to support future demand. CEO Mohit Joshi addressed concerns regarding technology-driven job cuts, noting that the firm is utilizing artificial intelligence to boost productivity rather than relying on large-scale workforce reductions.
Deal Momentum and Future Visibility
The company has demonstrated consistency in securing large contracts, reporting over $1 billion in Total Contract Value for the third consecutive quarter. The recent quarter saw new deal wins reach $1.1 billion, a 33.3% increase compared to the previous year. The business also successfully expanded its footprint among larger clients, adding three new accounts in the $10-million bracket and four in the $50-million-plus category. Analysts have observed that these wins place the company on a stable path toward its fiscal 2027 goals, provided that the broader economic environment does not weaken significantly.
Investors will now monitor the company’s ability to execute these new contracts while managing the cost implications of resuming campus hiring. The long-term impact on margins will depend on whether the productivity gains from artificial intelligence can keep pace with the costs associated with expanding the workforce and meeting client delivery requirements.