Tata Consultancy Services (TCS) has deferred the rollout of increments for its employees by another quarter. The firm’s consistent delay in decisions comes with a comment from TCS Chief HR Officer Milind Lakkad, who said, “We haven’t been able to take a decision yet on wage hike cycle.”
As per records, TCS started the wage hike cycle by April 1 of each fiscal year. TCS increased its workforce by 5,090 employees in Q1, taking the total headcount of India’s largest software exporter to more than 6,13,000 people.
TCS hirings
Speaking at the Q1FY26 earnings conference, Lakkad also elaborated that, “hiring shouldn’t be connected to quarterly growth. It’s is planned on a yearly basis.”
“We had increased hiring in the earlier quarters, but later encountered some business challenges. This created an imbalance, though it’s not a major concern as we plan to make use of this surplus going forward,” he explained.
TCS revenue
TCS posted a modest 1.3% year-on-year rise in revenue to Rs 63,437 crore, although revenue declined by 1.6% compared to the previous quarter. Net profit, however, saw an almost 6% annual increase and a 4.4% rise sequentially to Rs 12,760 crore, supported by one-off tax benefits and savings from winding down a large transformation project.
CEO K Krithivasan attributed the subdued growth to weaker demand amid global macroeconomic and geopolitical uncertainties. “We had spoken about delays in decision-making when projects start with respect to discretionary investments. This trend has continued and intensified to some extent in this quarter as global businesses were disrupted due to conflicts, economic uncertainty and supply chain issues,” he spoke at the conference.