TCS net profit falls 1.7% in Q4, wage hikes delayed amid business worries; Employees say ¡®we should give 2% effort and work less¡¯
TCS has posted a 1.7% drop in Q4 profit and deferred salary hikes for over 6 lakh employees due to market uncertainty. As the company restructures top roles and shares cautious outlook for FY26, employees express disappointment on social media.
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.
Annual profit up, but uncertainty looms
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.
Employees respond on social media
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.¡±
Didn¡¯t quite understand this view from TCS. A pessimist view could be that savings from no increment would go the bottom line for ¡®better¡¯ FY26. I think the optimism for FY26 does not have a baseline. Your POV ¡°prepare for the worst¡± is more apt
¡ª Ashutosh Misra (@ash_misra) April 11, 2025
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.¡±
TCS below average numbers but good deal closures and good positive commentary. Let's see how the situation unfolds, it is wait and watch situation as of now in IT space.
¡ª Kaushal (@Kaushal_Sengar7) April 11, 2025
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.¡±
Tcs gives 4% hike during better results,
¡ª Khaire (@Khaire_Currency) April 11, 2025
Now they will give 2%.
It's better that employees give back 2% to the company and do less work rather than proving themselves with 12 hrs work.
IT companies always have cash reserves with them they just don't use that on employees.
Leadership changes announced
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.
Milind Lakkad, CHRO, TCS (L) K Krithivasan CEO & MD (R)
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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Nancy Jaiswal is a journalist who started her career in reporting and has covered both hard and soft news. From serious city news developments to lighthearted lifestyle pieces, she has written on almost everything hapenning in India (except maybe alien invasions¡ªyet!). For her, writing isn¡¯t just work; it¡¯s a passion, an obsession, and sometimes the reason she forgets to reply to texts.
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