Tata Consultancy Services (TCS), India¡¯s largest IT firm, has posted a 1.7% fall in net profit for the quarter ending March, bringing the figure to Rs 12,224 crore. The dip is largely linked to narrowing margins. This makes TCS the first major IT player to announce its January-March results.
The company also said it would delay salary hikes for its workforce of 6.07 lakh employees, citing business uncertainties. Global tariff concerns and slower decision-making in client spending were highlighted as key reasons.
Despite the Q4 slowdown, TCS reported a 4.2% rise in net profit for FY25, totalling Rs 48,553 crore. Revenue also grew by 6%, crossing Rs 2.55 lakh crore (more than USD 30 billion).
CEO and MD K Krithivasan said that although the outlook for FY26 appears better in terms of revenue, there are clear signs of pressure. He admitted that some projects have been scaled down and discretionary budgets are taking longer to clear.
As news of the delayed increments spread, employees and observers took to social media to share their views.
One user questioned the move, saying, ¡°Not sure I get TCS¡¯s thinking here. If no hikes help the bottom line for a ¡®better¡¯ FY26, that¡¯s not optimism¡ªit¡¯s just preparing for the worst.¡±
Another user commented on the mixed signals: ¡°TCS showed below-average numbers, but closed good deals and gave positive commentary. Let¡¯s wait and see how this plays out in the IT sector.¡±
A third user, more frustrated, said, ¡°TCS gave 4% hikes when results were better. Now they¡¯ll give 2%. Employees should just give back 2% of work too, instead of slogging 12 hours daily. These companies have cash reserves¡ªthey just don¡¯t spend on their people.¡±
As a part of the leadership update, Aarthi Subramanian has been appointed as the new COO, executive director, and president of TCS. She will begin her five-year term from May 1. Earlier, she served as the chief digital officer at Tata Sons, where she led digital and innovation strategies across the group.
Mangesh Sathe has also been brought in as chief strategy officer. He was previously the CEO of Tata Strategic Management Group. Sathe will handle global consulting and oversee mergers and acquisitions. Both executives will directly report to Krithivasan.
Krithivasan added that the new appointments are part of TCS¡¯s long-term plans to build new skills and form external partnerships as technology continues to evolve. He admitted that relying only on internal talent may not be enough for growth in certain areas.
The company¡¯s cautious tone and employee reactions suggest that while FY26 may bring better numbers, confidence among workers may take longer to rebuild.
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