The company released its results for the third quarter of the 2025–26 fiscal year showing signs of improved workforce stability and a continued focus on growth. Voluntary attrition eased, headcount rose, and leadership signalled confidence in future demand — backed by a substantial hiring plan for the year ahead.
Q3 highlights at a glance
- Voluntary attrition: Fell to 12.3% in Q3.
- Headcount change: Net increase of 5,043 employees during the quarter.
- Hiring outlook: Management plans to recruit between 18,000 and 20,000 new employees over the next year.
- Leadership tone: CEO Salil Parekh expressed confidence in market demand and the company’s hiring strategy.
Why the drop in attrition matters
A lower voluntary attrition rate is an important signal for any services firm. At 12.3%, the reduction suggests the company is doing a better job of retaining staff, which can lead to:
- Lower recruitment and onboarding costs.
- More continuity on client projects and faster delivery.
- Improved institutional knowledge and higher utilisation rates.
Retention gains are especially valuable when firms are executing large transformation and technology programs that rely on experienced teams.
Headcount growth and what it indicates
A net increase of 5,043 people in one quarter points to sustained demand for services and a proactive talent pipeline. Growth in headcount typically reflects a combination of new project wins, expansion in key geographies or practice areas, and planned capacity-building ahead of anticipated client needs.
Hiring plan and market outlook
CEO Salil Parekh has signalled a clear commitment to growth, targeting 18,000–20,000 hires in the coming year. That ambition suggests the company expects steady market demand and is preparing to scale delivery capacity. For clients, that can mean greater bandwidth and faster project starts; for job seekers, it could mean a wide range of openings across technology, consulting and delivery roles.
Across the industry, demand is commonly driven by cloud migration, digital transformation, automation and emerging areas such as generative AI. Whether hiring focuses on fresh graduates, mid-career hires or specialised senior talent will shape how quickly the firm can convert demand into billable work.
Operational and strategic implications
- Recruitment scale-up: Hiring 18,000–20,000 people requires ramped-up campus and lateral recruitment, onboarding capacity and training programs.
- Skills and reskilling: Balancing campus hires with reskilling for newer technologies will be critical to meet client needs.
- Margin management: Rapid staffing increases can affect short-term margins until new hires are fully billable.
Risks and opportunities ahead
The outlook combines clear opportunities with a few challenges. On the positive side, stronger retention and headcount growth position the company to capture more business. On the other hand, the broader talent market remains competitive, and scaling large hiring programmes will require investment in learning and employee engagement to sustain the lower attrition level.
What this means for stakeholders
- Employees: Potential for greater internal mobility, learning programmes and recruitment-driven career openings.
- Clients: Improved resource availability and capacity to add or accelerate projects.
- Investors: Signs of operational stability and proactive demand management, though execution risks around large-scale hiring should be monitored.
Overall, the quarter’s results point to a company preparing for growth: attrition has eased, the workforce has expanded, and leadership is planning a substantial hiring push. How effectively the firm turns that hiring into sustained revenue and margins will be a key watchpoint in the coming quarters.