TCS salary hike: IT major says wage hikes to 6 lakh employees a ‘priority’. Here’s what CFO says | Company Business News

TCS salary hike: India’s largest IT company, Tata Consultancy Services (TCS), has said that their ‘priority’ focus is delivering wage hikes for its over 6 lakh workforce.

“My priority is getting back to the wage hike,” said Chief Financial Officer (CFO) Samir Seksaria without specifying a deadline for the salary hike for its employees. 

Speaking to news agency PTI, Seksaria also claimed that the company has ‘rarely’ resorted to delaying wage hikes compared to its peers. 

Seksaria also made it clear that TCS will focus on growth with profitability.

Earlier this week, TCS’ Executive Vice President and Chief Human Resources Officer (CHRO), Milind Lakkad said that the company has not made any decision so far on the wage hikes.

“With respect to wage hikes, we have not made any decisions so far,” Milind Lakkad told reporters on Thursday, 10 July 2025. The company usually announces its salary hikes effective from 1 April every year.

The agency report, citing the CFO, also highlighted that the annual salary hike for TCS employees squeezes the company’s operating profit margin by over 1.50%. TCS’s operating margins narrowed 20 basis points to 24.5% in the April-June quarter amid the company’s plans to boost them to 26-28% levels. 

TCS to go slow on lateral hiring?

TCS employee attrition rate jumped 13.8% on a last twelve-month (LTM) basis as of the end of the April to June quarter of FY2025-26. This marked a marginal rise on a quarter-on-quarter (QoQ) basis, compared to its 13.3% levels in the January-March quarter of FY 2024-25.

The company’s CFO said that with the attrition rate hitting a ‘concerning level’ as of the April-June quarter, the company will now focus on retaining top-level talent, which is difficult to build through fresh hiring. He also hinted that as the company has capacity now, it may go slow on lateral hirings and restart once the demand surges, according to the agency report. 

TCS’s future plans

TCS also plans to focus on growth with profitability after the April-June quarter, where the IT major faced headwinds on growth and margins, Seksaria told the news agency after the quarterly results release.

“Our focus will be growth with profitability. Only profitability without growth doesn’t help,” Seksaria told the news agency.

The IT company’s consolidated net profits rose 6% to ₹12,760 crore for the April-June quarter of the 2025-26 fiscal year, compared with ₹12,040 crore in the same quarter a year ago. Meanwhile, the consolidated revenues rose 1.3% to ₹63,437 crore in the first quarter, compared to ₹62,613 crore in the same period a year ago.

TCS attributed the smaller increase in income to the impact of macroeconomic and geopolitical troubles on the company’s business.

On the expansion front, TCS does not plan to cut its investments, but there can be ‘realignments’, like building only a part of a structure on a plot, reported the news agency, citing Seksaria.

The company also disclosed that it will not make an acquisition just to expand the firm’s topline; at the same time, the CFO highlighted that it is looking in the market for any opportunities.