Tata Consultancy Services (TCS), India’s largest IT services firm, has announced that it has yet to finalise salary hikes for 2025. The update, revealed during the Q1 FY26 earnings call, reflects the challenges posed by a tough macroeconomic climate and ongoing global disruptions.
Speaking at the post-Q1 press conference held on July 10, 2025, TCS Chief HR Officer Milind Lakkad confirmed that no decision had been made on the annual salary increment for employees. He attributed the delay to the volatile global economic and geopolitical environment. Despite the uncertainty, Lakkad assured that once the macro situation improves, the company will aim to provide the best possible hikes within its usual range.
Historically, TCS provided increments of 10.5% in FY22, 6–9% in FY23, and 7–9% in FY24. As per news reports, salary hikes for FY25 may range from 4% to 8%, indicating a potential drop to the lowest level in 4 years. The hints at reduced hikes are unsurprising amid weakened client spending and delays in project decisions.
For Q1 FY26, TCS reported a net profit of ₹12,760 crore, growing by 5.98% YoY and 4.38% QoQ. Revenue from operations stood at ₹63,437 crore, up 1.13% YoY but down 1.61% QoQ. On a constant currency basis, revenue declined 3%, showcasing pressure from global business disruptions and softened demand in discretionary spending.
Read More: Tata Sons 93% Holding in Tata Capital Worth Around ₹98,000 Crore!
TCS added 6,071 employees in the April to June period, bringing its workforce to 6,13,069 as of June 30, 2025. Net headcount grew by 5,090 in Q1. However, attrition increased to 13.8% from 13.3% in the prior quarter, reflecting a slight uptick in employee movement amid industry uncertainties.
On July 11, 2025, Tata Consultancy Services share price opened at ₹3,299.90 on NSE, below the previous close of ₹3,382.00. During the day, it surged to ₹3,335.00 and dipped to ₹3,266.00. The stock is trading at ₹3,269.10 as of 1:59 PM. The stock registered a significant decline of 3.34%.
Over the past week, it has declined by 4.18%, over the past month, it has declined by 5.13%, and over the past 3 months, it has moved up by 2.06%.
TCS's wait-and-watch approach on the 2025 salary hike reflects its caution in navigating an uncertain global terrain. While the company remains committed to rewarding employees suitably, decisions hinge on future economic and geopolitical stability.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Jul 11, 2025, 3:05 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
