TCS Talks Wage Hikes and Profitable Growth: What’s Really Going On?

Image Source: People Matters

TCS’s CFO, Samir Seksaria, has made it clear that wage hikes are still a priority for the company, but nothing’s set in stone yet. If you’re working at TCS or just keeping tabs on the IT sector, you’ve probably noticed the uncertainty around pay raises this year. Seksaria says the company wants to reward its employees, but any decisions will depend on how business shapes up over the next few quarters. So, while wage hikes aren’t off the table, they’re definitely on hold for now.

Attrition is creeping up again—now at 13.8%, the highest in almost two years. That’s got TCS focused on keeping employees engaged and making sure they don’t lose more talent to competitors. The company did add over 6,000 new hires last quarter, bringing the total headcount to more than 613,000.

On the financial side, TCS posted a 6% jump in net profit for Q1 FY26, hitting Rs 12,760 crore. Revenue was up slightly year-on-year, and the company landed $9.4 billion in new deals, especially in AI and cybersecurity. Despite the cautious mood, TCS is investing in future-ready skills and sticking to a strategy of profitable growth.

Bottom line: TCS wants to keep growing and rewarding its people, but they’re playing it safe until the business climate is a bit clearer.

Sources: The Week, Times of India, Outlook Business, NDTV Profit, Economic Times, Yahoo Finance, GoodReturns, TCS Press Release, Moneycontrol, Equitymaster