New Delhi: Tata Consultancy Services (TCS), India’s largest IT services company, has not yet made a decision on salary hikes for its employees this year. The update was shared by Milind Lakkad, Executive Vice President and Chief Human Resources Officer of TCS, during a press conference following the company’s Q1 FY2026 results announcement on July 11.
No Salary Hike Decision Yet
Traditionally, TCS begins its annual salary increment cycle in April. However, this year, the company has delayed making a decision. “We have not made a decision on that front yet and we will decide during the year. As soon as we know, we’ll let you know,” said Lakkad, addressing employee concerns about pay raises.
Job Offers and Hiring Plans
Lakkad also confirmed that TCS will honor all job offers made last year, although the timing of when new hires will join depends on the business situation. Last year, the company struggled to onboard all 42,000 engineering graduates it had recruited due to slow market conditions.
Looking ahead, TCS aims to hire 40,000 engineering graduates in the financial year 2025-2026. However, this target may be adjusted depending on how the business performs in the coming months.
Strong Financial Performance in Q1 FY2026
Despite the uncertainty around salary hikes, TCS reported a solid financial performance for the first quarter of FY2026. The company’s net profit rose by 6 percent to Rs 12,760 crore compared to Rs 12,040 crore in the same period last year. Revenue also saw a modest increase of 1.3 percent, reaching Rs 63,437 crore. However, when adjusted for constant currency, revenue was down by 3 percent.
TCS’s operating profit margin improved slightly, up by 0.3 percent to 24.5 percent for the April-June period. The company’s total headcount at the end of the quarter stood at 613,069, which is an increase of over 6,000 employees compared to the previous year.
