No Immediate Pay Raise Decision

During the Q1 FY26 earnings call, Chief Human Resources Officer Milind Lakkad confirmed that TCS has yet to finalize salary increments for its ~613,000 employees. The decision on wage hikes is expected later in the year, pending business performance and economic conditions 1.

Q1 FY26 Performance Indicators

For the April–June quarter, TCS reported a 6% year-on-year rise in net profit to ₹12,760 cr, with revenue at ₹63,437 cr (+1.3%). Amid cautious growth, discussions on salary increments remain underway 2.

Attrition, Hiring & Workforce Numbers

TCS ended Q1 with an attrition rate of 13.8%—notably above its preferred 11–13% threshold. Despite this, the company added approximately 6,000 employees, increasing its headcount from 607,979 to 613,069 3.

Why Hikes Are Delayed

Milind Lakkad attributed the delay to continued macroeconomic uncertainty and global IT demand softness. He emphasized that compensation reviews will be aligned with business recovery and improved environment 4.

Salary Revision Cycles and Market Context

Traditionally, TCS implements salary hikes in Q1, reflected in Q2 payroll. However, due to recent global headwinds—including tariff volatility—the company withheld decisions in Q4 FY25, signaling a pay review later in FY26 5.

Trivia & Quick Stats

• Total employees: ~613,069 as of June 2025.
• Attrition stands at 13.8%, exceeding comfort range.
• Revenue: ₹63,437 cr; Net profit: ₹12,760 cr in Q1 FY26.
• Headcount increased by ~6,000 in the quarter.
• Salary revisions historically fall in Q1/Q2.

Conclusion

TCS is awaiting clearer business signals before finalizing 2025 wage adjustments. Employees and industry watchers should monitor upcoming quarters for guidance on when hikes will be implemented.

Source: India