The issues of staff leaving and staying are a major concern for knowledge-driven sectors like Information Technology, where workers’ knowledge is a major factor in how well businesses perform financially. This research looks at how the level of attrition and retention impacts the financial performance of moderate-sized Indian IT companies traded on the BSE Sensex between 2020 and 2025. This study used secondary data sources such as annual reports, financial databases, and company disclosures. Descriptive Statistics, Trend Analysis and Correlation Analysis were performed for this study to analyse how the Stability of the Workforce' relates to various financial indicators, namely Revenue Growth, Net Profit Margin and Return on Assets. The results of the study supported the hypothesis that higher rates of attrition correlated with poorer profit performance and greater operational efficiency, while higher levels of retention correlated with greater productivity and optimal asset utilisation. Therefore, in order to maintain a firm's financial environment and long-term viability in the Indian IT Industry, firms need to develop an effective employee retention and talent management strategy