Tata Consultancy Services (TCS), the biggest IT company in India, has stated that raising wages for its more than 6 lakh employees is their “priority” goal.
TCS’ Chief Financial Officer (CFO) Samir Seksaria stated, “My priority is getting back to the wage hike,” without giving an exact date for the increase in staff salaries. In addition, Seksaria told a news agency that, in contrast to its competitors, the company has “rarely” resorted to postponing pay increases.
Seksaria also stated unequivocally that TCS will prioritise profitability and growth. Milind Lakkad, the Executive Vice President and Chief Human Resources Officer (CHRO) of TCS, stated earlier this week that the company has not yet decided whether to raise wages.
On July 10, 2025, Milind Lakkad informed the media that the company has not yet taken any decisions regarding pay increases. The corporation typically announces pay increases that take effect on April 1st of each year.
According to a media agency article that quoted the CFO, TCS’s operational profit margin is squeezed by more than 1.50% as a result of the yearly compensation increase for its staff.
In the April-June quarter, TCS’s operating margins decreased 20 basis points to 24.5%, despite the company’s intention to increase them to 26-28% levels.
Attrition Rate a Major Concern-CFO
As of the end of the April to June quarter of FY2025-26, the attrition rate for TCS employees increased by 13.8% on a last twelve-month (LTM) basis.
Compared to its 13.3% levels in the January-March quarter of FY 2024-25, this represented a little increase on a quarter-over-quarter (QoQ) basis.
The company will now concentrate on keeping top-level talent, which is hard to develop through new hires, after the attrition rate reached a “concerning level” as of the April-June quarter, according to the CFO.
According to the agency report, he also made a suggestion that the corporation may halt lateral hirings until demand spikes because it now has capacity.
TCS’ Growth Strategy
Following the release of the quarterly results, Seksaria told the news agency that TCS also intends to concentrate on growth and profitability following the April-June quarter, during which the IT giant encountered challenges with growth and margins.
Seksaria informed the press that TCS will prioritise profitability and expansion. Profitability alone is insufficient without development. Compared to INR 12,040 crore in the same quarter last year, the IT company’s consolidated net earnings increased 6% to INR 12,760 crore for the April–June quarter of the 2025–26 fiscal year.
In the meantime, the first quarter’s consolidated revenues increased 1.3% to INR 63,437 crore from INR 62,613 crore in the same period last year.
According to the news agency, which cited Seksaria, TCS has no plans to reduce its investments in expansion; nevertheless, there may be “realignments,” such as constructing only a portion of a structure on a plot.
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