Tata Consultancy Services (TCS) has rolled out across-the-board salary increases for all employees, effective 1 April 2026, following a stronger-than-expected fourth quarter, with net profit climbing 12% year-on-year to ₹13,718 crore on revenue of ₹70,698 crore.
The company added 2,356 employees in Q4 FY26, ending the financial year with a total headcount of 584,519. The sequential increase is the first in three quarters as TCS shed over 23,460 employees across FY26, including 20,000 in Q2 and another 11,150 in Q3, restructuring away from volume-based delivery toward a leaner, AI-skilled workforce.
“We are pleased to implement annual salary increases across all grades effective 1st April,” said Sudeep Kunnumal, Chief HR Officer at TCS. “In Q4, we continued to invest in a future-ready workforce with strong additions across experienced talent and campus hires.”
The Q4 headcount uptick, while modest, is being read as a signal that the deepest phase of rationalisation at TCS may be behind it. Deal wins of $12 billion in Q4, driven significantly by AI-led mandates, suggest growing demand for skilled delivery talent, particularly in AI/ML, cloud, and data engineering.
However, the results also surfaced a concern: voluntary attrition edged up to 13.7% in Q4, compared to 13.5% a year earlier. More notably, attrition among senior executives rose to 16%. Women comprised 35.2% of TCS’s total workforce, drawn from 149 nationalities. TCS stock has declined approximately 19% year-to-date in 2026, though analysts largely maintain a positive outlook, with an average target price of around ₹3,079.
