TCS employees bear the brunt of Trump tariff-induced uncertainties, wage hikes on hold

After over nine months of leaving the COO chair vacant, Tata Consultancy Services (TCS) appointed Aarthi Subramanian to take over the role. Among other major leadership appointments was the elevation of Tata Strategic Management Group (TSMG) chief executive Mangesh Sathe to TCS chief strategy officer. These announcements came at a time when the Indian IT services major deferred wage hikes for its 6 lakh-plus employees citing global business uncertainties triggered by the latest tariff tussle.

 

While employees are now forced to bear the brunt even as they work at one of India’s top ten valued firms by mcap, TCS reported that its fiscal 2025 net profit (attributable to shareholders) jumped 4.2 per cent to ₹48.553 crore on an ops revenue of ₹2.55 lakh crore (up 6 per cent).

 

Further good news followed, with MD and CEO K. Krithivasan stating that the IT major expects better revenue for FY 2026 despite the current challenges. “We are pleased to cross the $30 billion in annual revenues and achieve a strong order book for the second consecutive quarter,” beamed Krithivasan, assuring TCS to be a “pillar of support” for its customers “in this environment of macroeconomic uncertainty.”

 

While TCS promised its customers support from ‘uncertainties’, it seems that its own employees are to be at the receiving end of US President Donald Trump levying tariffs, pausing them, and so on. Even TCS shareholders seem to be getting a piece of the pie, as the company proposed a ₹30 per share final dividend.

 

The stock market, however, seems to have not been impressed, with around 40 lakh shares changing hands almost flat (under 0.5 per cent up and down) on Friday morning from Thursday’s close of ₹3246.60 apiece—maintaining the levels it fell to on Wednesday. This was despite the BSE Sensex jumping more than 1,210 points and Nifty surging by at least 388 points in morning trade.

 

TCS later on Thursday did update on the deferred wage hikes, stating that it would be decided later in the year. IT services attrition (LTM) for TCS stood at 13.3 per cent.

 

The BFSI sector still accounted for a major chunk of TCS operations, with almost a third of its growth attributed to the sector. According to the company, the demand for the sector continues to be good. Tariffs are expected to impact other sectors more, like retail, auto, travel, and hospitality.

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