TCS defers wage hikes due to biz uncertainties

Tata Group's TCS defers wage hikes for employees due to business uncertainties, reports decline in net profit.

The Tata Group company, which is the first major entity to report January-March performance, announced that it will be deferring wage hikes to its 6.07 lakh employees due to the business uncertainties triggered by the tariff issues.

The company's chief human resources officer Milind Lakkad said the business uncertainties have led it to delay the annual wage hikes, which generally set in from April. He, however, did not give a timeline by when it will announce the hikes.

TCS hired 42,000 freshers from campuses in FY25, and will maintain or improve on the number in FY26, Mr. Lakkad said, adding that the attrition inched up to 13.3%.

The IT major reported a 1.68% decline in net profit to Rs. 12,224 crore for the fourth quarter ended March 31, 2025, compared with Rs. 12,434 crore in the year-earlier period due to higher investments.

Revenues grew 5.29% to Rs. 64,479 crore from Rs. 61,237 crore in the same period last year. Operating margin for the quarter was 24.2%, while net margin was 19%.

The company's managing director and chief executive K Krithivasan said it expects FY26 to be better than FY25 on the revenue front, but acknowledged the ongoing challenges.

There are delays in decision-making when it comes to discretionary spending, he said, adding that there are some project ramp-downs as well. He was, however, quick to add that there have not been any major project delays.