TCS Rolls Out Salary Hikes Across All Job Roles Effective April 1; Q4 Profit Surges 29%

Tata Consultancy Services (TCS) announced it will roll out annual salary increments for all job roles effective April 1, 2026. The announcement comes after a robust set of fourth-quarter results that saw the company’s bottom line expand by nearly a third.

The wage revision was confirmed by Chief Human Resources Officer (CHRO) Sudeep Kunnumal during a post-earnings briefing. "We are pleased to implement annual salary increases across all grades effective 1st April," Kunnumal stated. He noted that the company continues to focus on a "future-ready" workforce, balancing fresh campus recruitment with the hiring of experienced professionals.

The IT major is moving into the new fiscal year with the integration of artificial intelligence. Kunnumal emphasized that establishing an "AI-first culture" was a defining priority for FY26 and will remain the primary focus for FY27.

The initiative aims to equip the global workforce with AI-ready skills to meet the shifting demands of international clients who are increasingly moving away from traditional legacy systems.

Headcount Rebound 

TCS ended the financial year with a total employee strength of 584,519. This follows a net addition of 2,356 employees during the March quarter. This reversed the trend of contraction seen earlier in the year.

The headcount stability comes after a restructuring program initiated in July 2025, which saw the firm reduce its workforce by approximately 2%. This primarily affected middle and senior management, resulting in a drop of over 30,000 roles earlier in the fiscal year.

In terms of workforce diversity, women now represent 35.2% of the total staff. However, the company faces a slight uptick in labor mobility. The voluntary attrition rate edged up to 13.7% in the final quarter, compared to 13.5% in the preceding three-month period.

Financial Performance 

Revenue for the quarter climbed 5.4% to reach Rs 70,698 crore, up from Rs 67,087 crore in the previous quarter. Net profit jumped 29% to Rs 13,718 crore. This was supported by a 6% rise in earnings before interest and taxes (EBIT), which stood at Rs 17,870 crore. The firm also managed to squeeze out higher efficiency, hence, reporting an operating margin of 25.3%, a slight improvement over the 25.2% recorded in the third quarter.

The TCS board recommended a final dividend of Rs 31 per share. This brings the total capital returned to shareholders via dividends in fiscal 2026 to Rs 39,571 crore.

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