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Tata Consultancy Services

TCS Adds Over 9,200 Employees in Q1 FY27 as Hiring Rebounds; Reports 5% Rise in Net Profit

/ Human Resource Community

Tata Consultancy Services (TCS) recorded a strong rebound in hiring during the first quarter of FY27, adding more than 9,200 employees and taking its total workforce to 593,798 as of June 2026. The company’s headcount stood at 584,519 at the end of the previous quarter, marking a significant recovery after three consecutive quarters of workforce reductions. TCS had seen its employee count decline from a peak of 613,069 in Q1 FY26 to 582,163 by Q3 FY26, before returning to growth over the last two quarters. The company’s voluntary attrition rate in its IT services business remained stable at 13.6% on a last-twelve-months basis. The company also highlighted continued progress in workforce diversity and employee development. Women now account for 35% of TCS’s global workforce, representing employees from 148 nationalities. During the quarter, employees completed 14.6 million learning hours, acquired 1.3 million new competencies, and more than 3.12 lakh employees enhanced their expertise in artificial intelligence (AI) and machine learning. Chief Financial Officer Samir Seksaria said the company has implemented annual salary hikes, expanded its partner ecosystem, and made strategic investments to strengthen long-term competitiveness. He added that TCS remains focused on building, acquiring, and partnering to expand its AI-driven capabilities while maintaining healthy profitability and returns. Financially, TCS reported a 5% year-on-year increase in consolidated net profit, reaching ₹13,349 crore in Q1 FY27, compared to ₹12,760 crore in the corresponding quarter last year. Revenue from operations grew 14% year-on-year to ₹72,275 crore. The company’s board also approved an interim dividend of ₹12 per equity share for FY27, with July 15 fixed as the record date for eligible shareholders. TCS reported a $9.5 billion order book for the quarter, driven by several major wins, including an $800 million AI-led transformation deal with SKF, a multi-million-dollar strategic partnership with ServiceNow, and another significant contract with a Europe-based Fortune Global 50 company. Source: Economic Times

TCS Adds Over 9,200 Employees in Q1 FY27 as Hiring Rebounds; Reports 5% Rise in Net Profit Read More »

TCS Expects AI Agents to Match Human Workforce Within Three Years, Says N Chandrasekaran

/ Human Resource Community

Tata Consultancy Services (TCS) is poised to witness a major shift in its workforce structure, with Tata Sons Chairman N. Chandrasekaran predicting that the company will have as many AI agents as human employees within the next three years. Addressing shareholders at TCS’ 31st Annual General Meeting, Chandrasekaran said the company is rapidly expanding the deployment of AI agents across internal operations, customer solutions, and business processes as part of its long-term artificial intelligence strategy. He emphasized that AI is becoming a critical growth engine for the company and is transforming the way enterprises operate. According to Chandrasekaran, TCS has recorded strong momentum in its AI business, with AI-related revenues growing at a compound quarterly rate of over 22 percent during the past four quarters. The company’s annualised AI revenue reached USD 2.5 billion in the final quarter of FY26, reflecting increasing demand for AI-driven solutions. Rejecting concerns that artificial intelligence could threaten the IT services industry, he described AI as one of the most significant opportunities for enterprise technology. He highlighted five major growth areas emerging from AI adoption: modernization of legacy systems, AI-powered redesign of business processes, governance and management of AI agents, sovereign AI initiatives, and the rise of physical AI applications in industrial environments. Chandrasekaran noted that TCS has already launched sovereign AI projects in India and Europe, while also deploying AI-powered robotics solutions for global clients. He added that growing enterprise investments in AI are expected to drive technology spending worldwide over the next two years. Despite rapid technological change, TCS continues to maintain strong business performance. The company reported consolidated revenue of Rs 2.67 lakh crore in FY26, marking a 4.6 percent year-on-year increase, while net profit rose 8.8 percent to Rs 52,820 crore. TCS also secured contracts worth more than USD 40.7 billion during the fiscal year. He concluded that in the evolving AI landscape, trust, context, and deep client relationships will remain the most valuable differentiators for technology companies. Source: ANI

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TCS Announces 100% Variable Pay for Junior Employees Amid Steady Growth in Q2FY26

/ Human Resource Community
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Tata Consultancy Services (TCS), India’s largest IT services company, has announced the rollout of its quarterly variable allowance (QVA), with junior employees set to receive 100% of their entitlement. The company’s Chief Human Resources Officer, Sudeep Kunnumal, confirmed the development in an internal communication, highlighting that mid- and senior-level employees will also see a higher payout compared to last year. Kunnumal noted that annual salary revisions for employees up to grade C3A have been implemented effective September 25, with top performers securing double-digit increments. Typically, employees in grades C, C1, and C2—considered the junior band—receive both annual hikes and full variable pay, while those in senior roles have performance-linked payouts. “All associates up to grade C2 under the QVA plan will receive 100% of their quarterly variable allowance,” Kunnumal said in his message. “For grades C3A and above, the payouts will vary based on business performance, though the overall payout for this group will exceed last year’s levels.” In its second-quarter financial results for FY26, TCS reported a 3.8% sequential dip in net profit to ₹12,075 crore, down from ₹12,760 crore in the previous quarter. However, revenue rose 3.7% quarter-on-quarter to ₹65,799 crore, with constant currency growth of 0.8%. The IT giant also saw a reduction of nearly 20,000 employees during the September quarter, even as it doubled its talent base in advanced AI and machine learning skills to 1,59,000 professionals compared to the same period last year. Source: Economic Times

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TCS to Lay Off Over 12,000 Employees Amid AI Disruption and Economic Pressures

/ Human Resource Community
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In a landmark decision, Tata Consultancy Services (TCS), India’s largest IT services provider and the crown jewel of the Tata Group, is set to let go of 12,261 employees — nearly 2% of its global workforce — making it the biggest layoff in the company’s history. The move comes as TCS navigates a rapidly evolving technology landscape marked by AI-driven disruption, weakening demand, and global economic headwinds. The company, which had a workforce of over 610,000 as of June, is restructuring to align with new business realities. Historically, workforce reduction at TCS has been modest — for instance, in FY15, the firm cut about 3,000 jobs, roughly 1% of its employee base. This latest wave of layoffs will largely impact mid- to senior-level professionals, particularly those who cannot be transitioned into new roles within the organization. The restructuring signals a major pivot for TCS, as it intensifies its focus on automation and AI to remain competitive in an increasingly margin-sensitive market. “This transformation is about preparing TCS for the future,” CEO K Krithivasan noted in an internal communication. “While such changes are essential for our continued growth, we recognize the challenges it brings to our colleagues. We deeply appreciate their contributions and will support them through this transition.” Analysts say the decision reflects a broader industry trend. Phil Fersht, CEO of HfS Research, highlighted that AI is significantly disrupting the traditional, manpower-heavy IT services model. Clients are also pushing for steep cost reductions — sometimes as much as 20-30% — compelling firms like TCS to reevaluate their cost structures. The trend isn’t isolated to TCS. Other Tata Group companies such as Tata Motors and Tata Steel have also undertaken job cuts in recent years to streamline operations and boost profitability. In 2019, Tata Steel cut 3,000 positions in its European business. This move by TCS underscores the shifting priorities within the IT industry, where future-readiness increasingly hinges on agility, automation, and leaner operations. Source: Economic Times

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TCS Q1 FY26: Attrition Rises Slightly to 13.8%, Net Profit Grows 6.7% YoY

/ Human Resource Community

Tata Consultancy Services (TCS), India’s largest IT services company, reported a modest uptick in employee attrition during the first quarter of the financial year 2025–26. According to a regulatory filing on Thursday, the attrition rate for Q1 stood at 13.8%, up from 13.3% in the March quarter and 13% in the preceding December quarter. As of June 30, 2025, the company’s total workforce had grown to 613,069 employees, reflecting a year-on-year increase of 6,071 from the 607,979 reported at the end of March. Highlighting the company’s focus on skill enhancement, Milind Lakkad, Chief Human Resources Officer at TCS, stated, “Talent development remains central to our strategy. This quarter, our associates dedicated 15 million hours to upskilling, particularly in emerging technologies. We now have over 114,000 employees proficient in advanced AI capabilities.” The IT major also opened the earnings season for the June quarter by posting a 6.7% year-on-year rise in consolidated net profit, reaching ₹12,819 crore, compared to ₹12,105 crore in the same quarter last year. Revenue from operations witnessed a 1.3% increase, totaling ₹63,437 crore, up from ₹62,613 crore in Q1 FY25. Employee benefit expenses climbed 3.6% year-on-year to ₹37,715 crore, while the company’s overall expenses rose 1.6% to ₹48,118 crore. TCS also announced an interim dividend of ₹11 per share. The record date for eligibility is set for July 16, 2025, with dividend payouts scheduled by August 4, 2025. Source: Economic Times

TCS Q1 FY26: Attrition Rises Slightly to 13.8%, Net Profit Grows 6.7% YoY Read More »

No Relief for Infosys: Indian Government Maintains ₹32,000-Crore Tax Demand Amidst Canadian Fine

/ Governance Community

Infosys is facing a substantial tax challenge from the Indian government, which has refused to reduce a ₹32,000-crore ($4 billion) tax demand related to GST regulations. The demand, issued last month, pertains to services received from Infosys’s overseas branches between July 2017 and the fiscal year 2021-22. This amount represents about 85% of Infosys’s revenue for the quarter ending June 30. Infosys has requested a ten-day extension to respond after recent discussions with Indian Income Tax department officials. Despite this, the Indian authorities have indicated they will not ease the demand. In a recent update, Infosys confirmed that the tax demand for the 2017-18 financial year, totaling ₹38.98 billion, has been resolved. The company maintains it has met all tax obligations and adheres to both central and state regulations. In addition to this domestic issue, Infosys has also faced scrutiny from Canada. In May 2024, the Canadian government imposed a fine of CAD 134,822.38 (₹82 lakh) on Infosys for underpaying the employee health tax for the fiscal year ending December 31, 2020. Infosys disclosed this penalty in a regulatory filing received from Canada’s Finance Ministry on May 9. The broader IT sector has also been impacted, with significant declines in stock prices for other major players like Tata Consultancy Services and Satyam Computer Services. This downturn follows Infosys’s stock performance, which saw profit-taking after meeting market expectations and experiencing a prior price surge. Reference by Mint

No Relief for Infosys: Indian Government Maintains ₹32,000-Crore Tax Demand Amidst Canadian Fine Read More »