Tata Consultancy Services (TCS) has reiterated that it has not yet made a decision regarding the annual wage hikes for its over 600,000-strong workforce.
However, the company said, “If the macroeconomic environment improves, and as a result business improves, we will definitely give the best possible hikes we normally give.”
The IT services giant, which typically rolls out its annual hikes in the first quarter of the financial year, had deferred the decision at the end of Q4 FY25 citing an “uncertain business environment.”
After the first quarter of FY26, CEO K Krithivasan noted that the trend of delays in deal closures had intensified during the quarter.
“Overall, it’s too early to say when growth will resume, which to a great extent depends on more clarity emerging around the macroeconomic scenario,” said Krithivasan while addressing the press after the Q1 results. He further mentioned that with ongoing trade discussions and the “Big Beautiful Bill” awaiting approval, greater clarity should emerge in late July or August.
In rupee terms, Q1 revenue rose 1.3% year-on-year to ₹63,437 crore. However, in constant currency terms, it declined by 3.1%. Net profit grew 6% year-on-year to ₹12,760 crore during the April–June quarter. For the quarter ended June 2025, TCS secured new deals worth $9.4 billion in Total Contract Value (TCV), down from $12.2 billion in the previous quarter, though it still exceeded market expectations of $8–9 billion.
Hiring Hit by Business Issues
In the previous quarter, outgoing CHRO Milind Lakkad had stated plans to hire around 42,000 freshers from campuses in FY26. However, he now acknowledged that hiring had hit a roadblock, without offering specific details.
“We began hiring at the start of the year, but later faced some business challenges. As a result, some imbalances may be observed. That said, it’s not a major concern as we plan to leverage these resources in the future,” he said.
During the April–June period, TCS added 6,071 new employees, bringing its total workforce to 6,13,069 as of June 30, 2025.
Employee attrition ticked up slightly in Q1FY26, reaching 13.8% on a trailing 12-month basis, compared to 13.3% in the prior quarter and 13% in Q3FY25, according to the company’s official statement released on July 10.
TCS has recently appointed Sudeep Kunnumal as its new CHRO, effective March 14, 2025.
