Even as the rise of artificial intelligence (AI) and global volatility have kept hiring sentiment largely muted, Indian Institute of Management (IIM) campuses saw their median compensation rising 25-40% from that of the 2020 pandemic-era batch, as the 2026 cohort got picked up for specialized roles.
IIM Calcutta’s median pay package was ₹35 lakh in 2026, up nearly 3% from ₹34 lakh last year and more than 37% higher than the 2020 level of ₹25.5 lakh, according to its statement. IIM Lucknow matched the momentum at ₹32.9 lakh, over 6% higher than ₹31 lakh a year ago and a massive 43% up from the ₹23 lakh annual package of 2020, its press statement said. Most IIMs are wrapping up the placement process for the latest batch.
The data reflects broad employability and offers a realistic sense of what an IIM graduate can expect to earn. It captures the pay offered to a larger share of the batch, with the outcomes varying across institutes. The older IIMs command a higher median compensation than the newer ones.
What's driving up the numbers
The institutes and executives in placement teams attribute the rise in compensation to a mix of factors, including a stronger mix of top-tier recruiters across consulting, finance and technology, and a noticeable shift towards higher-value, strategic roles such as consulting, product management and leadership tracks.
“This is complemented by the consistently high calibre and diverse experience of the student cohort, along with a curriculum that is closely aligned with industry needs, particularly in analytics, digital transformation, and leadership skills,” IIM Calcutta said in response to Mint’s queries regarding the placements.
“The institute’s strong alumni network and brand equity continue to enhance recruiter confidence, while favourable market conditions (for IIM graduates) and competitive demand in key sectors have further contributed to the steady rise in median compensation,” added the institute, which was established in 1961.
A senior executive at one of the older IIMs told Mint that the median compensation for the batch of 2026 had shot up by at least 22% from 2020, and was up around 8% from last year.
The crests and troughs in compensation mirror market fluctuations and hiring capabilities. During FY22, as businesses went digital, India Inc guzzled talent across sectors after the initial big hit of the pandemic. However, the job market cooled thereafter, showing some improvement over the last couple of years. This is mirrored in the changes in median compensation as well.
In the case of IIM Calcutta, the median compensation dipped nearly 11% to ₹30 lakh in 2024 from ₹33.67 lakh offered to the batch of 2023. IIM Bangalore, on the other hand, saw a lower decline of 1.5% in median salaries from the 2023 and 2024 batches. The 2023 batch got ₹33 lakh, while the 2024 group received ₹32.5 lakh. For IIM Lucknow, the median compensation fell 10% to ₹27 lakh in 2024, from ₹30 lakh in 2023, mirroring the tepid job market.
Competing recruiters
The competition between first-time recruiters could be a factor for an increase in compensation for the batch of 2026. IIM Lucknow said in a press release that several first-time recruiters, including Berger, BlackRock, boAt, Darwinbox, Dezerv and Uber, participated in this year’s placement drive, offering both domestic and international roles.
A prominent reason for the increase in median salaries is the aggressive recruitment from consulting firms—Boston Consulting Group (BCG), Bain & Co, PwC, Accenture and Deloitte, among others. The usual heavyweights had to wrestle with startups and artificial intelligence companies to get their pick.
For instance, IIM Bangalore noted that 45% of the offers for the 2026 batch were given by management consulting firms, followed by technology and product management that contributed 15%, and investment banking making up 11% of the offers, the institute said in a press release. IIM Bangalore did not respond to Mint’s queries on median salaries.
Will the growth sustain?
Industry experts said this momentum may not last long.
“India has been investing heavily in growth areas such as infrastructure and hence, India Inc. has been hiring aggressively from IIMs this year, pushing the median salary up," said Narayanan Ramaswamy, partner and national leader for education and skill development practice at consulting firm KPMG in India. "However, given the geopolitical uncertainty and predictions of an economic slowdown, the job market may not be as vibrant next year.”
Ramaswamy also noted that dips are typical after a year of strong placements, serving as a cyclical market correction, much like 2024, when median salaries fell across most institutes from the prior year.
The institutes are, however, more optimistic.
“While it is still early to provide precise projections for 2027, initial indicators suggest a stable to moderately positive outlook for median compensation, supported by sustained demand for MBA talent,” IIM Indore said in a reply to Mint’s queries.
“AI is increasingly shaping placements, with higher demand for roles in analytics, product management and digital transformation," said the business school that was established in 1996. IIM Indore did not detail its median compensation for its 2026 batch.
While AI is indeed evolving job roles, it is also enhancing their value that is likely to support strong compensation levels "despite short-term market fluctuations”, IIM Indore said.
The higher pay packages at these top business schools come in an employers' market, where increments are likely to remain in single digits in 2026. According to consulting firm Aon, salaries in India will rise by an average 9.1% in 2026, as per its Annual Salary Increase and Turnover Survey 2026 India. Last year, the increase was lower at 8.9%.