On July 14, 2025, shares of Tata Consultancy Services (TCS) traded at ₹3,239.50, down 0.81% or ₹26.50 at 10:11 AM from the previous close of ₹3,266. The stock opened flat and touched an intraday high of ₹3,272.00 and a low of ₹3,233.70. The volume-weighted average price (VWAP) stood at ₹3,243.75.
Tata Consultancy Services (TCS) shares continued their downward trend on July 14, marking the 6th consecutive session of losses. The decline comes amid ongoing investor unease about the company’s delay in announcing annual salary hikes for its over 600,000 employees, as per news reports.
The stock movement reflects growing concerns around employee morale and cost management, especially as broader industry challenges persist in the Indian IT sector.
TCS usually announces its salary hikes effective from April 1 each year. However, as of mid-July, no official announcement has been made. Speaking to PTI, TCS CFO Samir Seksaria stated that providing salary hikes is a “priority” for the company and highlighted that TCS has “rarely” delayed them in the past, especially when compared to its peers.
Earlier, TCS’s Chief Human Resources Officer, Milind Lakkad, had said, “We have not made any decisions so far,” when asked about the hikes, suggesting internal deliberations are still underway.
The delay in salary hikes may be tied to TCS’s effort to improve profitability. According to Seksaria, annual wage increases typically compress operating profit margins by over 150 basis points. In the April–June quarter, TCS’s operating margin stood at 24.5%, a 20-basis-point dip from the previous quarter.
TCS aims to push this figure to the 26–28% range. Postponing salary increments may be a temporary measure to preserve margins in a challenging demand environment.
Tata Consultancy Services (TCS) announced its June quarter results on Thursday evening. The company reported a 6% year-on-year rise in net profit to ₹12,760 crore. But revenue growth was weak, rising just 1.3% year-on-year and falling 3.1% in constant currency. This was the third straight quarter of slow growth.
TCS’s continued stock slide reflects market sensitivity to internal cost decisions and broader macroeconomic factors. As the IT major balances profitability goals with workforce expectations, all eyes are on when and how the salary hike decision will be made.
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Published on: Jul 14, 2025, 10:24 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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