Bad news for TCS employees waiting for salary hike due to…, Ratan Tata’s company’s net profit falls to Rs…

Tata Consultancy Services (TCS) has decided to delay its annual salary hikes, which were originally scheduled for April, citing global economic uncertainty and possible shifts in US trade policies. The announcement came after the company revealed its Q4 results on Thursday. TCS management said the salary hikes would now be “considered later in the year,” depending on how the business environment evolves. “We will decide during the year when to make the wage hike,” said outgoing Chief Human Resources Officer Milind Lakkad, reflecting the company’s cautious approach. A similar move was made during the COVID-19 pandemic five years ago.

Despite the delay in salary hikes, TCS confirmed that quarterly variable pay will continue. For the March quarter, 70% of employees will receive their full variable payout, while the rest will be based on business unit performance.

Hiring at TCS

TCS announced that it will continue with its campus hiring plans, even as the company delays annual salary hikes. TCS aims to recruit around 42,000 freshers from colleges in FY26.

In the fourth quarter ending March 31, the company added 625 employees, bringing its total workforce to 607,979. Over the full financial year, TCS added a net 6,433 employees, marking a recovery after a net decline of 13,249 in the previous fiscal.

The company also confirmed that it successfully onboarded 42,000 freshers during FY25, fulfilling its earlier commitment.

Q4 Results

TCS reported a net profit of Rs. 12,224 crore for the fourth quarter of FY25, marking a 1.7 per cent decline from Rs. 12,434 crore in the same period last year. Despite the slight dip in profit, revenue for the quarter rose by 5.3 per cent year-on-year to Rs. 64,479 crore, and 0.79 per cent on a sequential basis.

For the full financial year, TCS delivered a net profit of Rs. 48,553 crore, a 5.8 per cent increase over the previous year. The company’s annual revenue reached Rs. 255,342 crore, reflecting 6 per cent year-on-year growth — officially pushing TCS past the USD 30 billion revenue milestone.

The company’s Total Contract Value (TCV) for Q4 stood at USD 12.2 billion, showing strong deal momentum. This is an improvement from USD 10.2 billion in Q3, and significantly higher than the USD 8.3 billion and USD 8.6 billion recorded in the first two quarters of the year.

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