TCS Headcount: IT giant headcount shrinks by 23,460 YoY; Declares salary hikes

Tata Consultancy Services (TCS) reported a decline in its total employee base for FY26, even as it continued to invest in talent development and AI-led skills while announcing salary hikes and maintaining hiring momentum in the March quarter.

The company said its employee base increased by 2,356 during the January-March quarter, taking the overall headcount to 5,84,519 as on March 31, 2026.

However, on a year-on-year basis, the workforce declined, with headcount standing at 584,519 at the end of Q4 FY26 compared with 607,979 in Q4 FY25, marking a net reduction of 23,460 employees.

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Sequential Workforce Trend in FY26

On a sequential basis, the workforce trend remained mixed through FY26. Headcount rose to 613,069 in Q1 FY26 from 607,979 in the preceding quarter, but declined thereafter to 593,314 in Q2 and further to 582,163 in Q3. The company then reported a marginal increase in Q4, indicating a partial stabilisation in hiring.

Attrition and Workforce Composition

Voluntary attrition in IT services stood at 13.7 per cent on a last twelve months (LTM) basis. Women employees accounted for 35.2 per cent of the total workforce, while the company said it has employees representing 149 nationalities.

Talent Development and HR Commentary

The company continued to focus on workforce capability building during the fiscal. It reported 69 million learning hours in FY26, while employees acquired 5.2 million competencies during the year. TCS added that over 270,000 associates now have higher proficiency in artificial intelligence and machine learning skills.

Chief HR Officer Sudeep Kunnumal said, “We are pleased to implement annual salary increases across all grades, effective April 1. In Q4, we continued to invest in a future-ready workforce, with strong additions across experienced talent and campus hires.

“Building an AI-first culture and equipping our people with AI-ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with our customers’ evolving needs,” he added.

Financial Performance and Stock Movement

The country’s largest IT services company also reported a rise in its financial performance for the March quarter. Net profit for Q4 FY26 increased 12.22 per cent to Rs 13,718 crore, compared with Rs 12,224 crore in the year-ago period and Rs 10,657 crore in the preceding December quarter.

For the full fiscal FY26, profit after tax rose 1.35 per cent to Rs 49,210 crore, as against Rs 48,553 crore reported in FY25.

Revenue from operations in the reporting quarter rose 9.64 per cent to Rs 70,698 crore from Rs 64,479 crore in the corresponding quarter last year. For the full fiscal year, revenue increased 4.58 per cent to Rs 2.67 lakh crore.

Shares of TCS ended 1.09 per cent higher at Rs 2,587.75 apiece on the BSE on Thursday, compared with a 1.20 per cent decline in the benchmark index.