TCS Q1 Results: Tata Consultancy Services (TCS) has deferred the wage increment of its employees for another quarter. Earlier TCS used to implement the salary hike on April 1 (beginning of the financial year) every year.
Tata Consultancy Services (TCS) has deferred the pay increment for its employees for another quarter. The company’s Chief HR Officer Milind Lakkad confirmed this and said, “We are yet to take any decision on the pay hike cycle.” Earlier TCS used to implement pay hike on April 1 (beginning of the financial year) every year.
The number of employees increased
TCS recruited 5,090 new employees in the first quarter (Q1FY26). With this, the total number of employees in the company has increased to more than 6,13,000. However, Lakkad clarified that “recruitment should not be linked to quarterly growth. It happens as part of the year-round plan.” According to Financial Express, he also admitted that after more recruitment in the previous quarters, business challenges created some “imbalance”, which is planned to be used in future work.
Slight increase in revenue
TCS reported a marginal year-on-year growth of just 1.3% in Q1 over the same quarter last year, generating revenue of ₹63,437 crore. Revenue declined by 1.6% compared to the previous quarter (Q4FY25).
Increased profits
However, net profit grew by about 6% compared to last year and 4.4% compared to the previous quarter to Rs 12,760 crore. This growth was possible due to savings from closing a large project and tax benefits.
CEO blames global uncertainty
TCS CEO Kriti Krishnan attributed the slow growth to weak demand due to global economic and geopolitical uncertainties. “We had earlier talked about delays in decision-making on discretionary investment projects. This trend continued this quarter and was further accelerated due to conflicts, economic uncertainty and supply chain problems,” he said.
