TCS Q1: Attrition Up, Net Headcount Grows

TCS Q1: Attrition Up, Net Headcount Grows


Tata Consultancy Services (TCS) reported a slight increase in its employee attrition rate to 13.8% for the twelve months ending June 30, 2025 (Q1FY26). This marks a marginal rise from 13.3% recorded in the previous quarter (Q4FY25).

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Despite the uptick in attrition, TCS continued to expand its workforce. The company added over 5,000 employees during the quarter, bringing its total headcount to 613,069. This growth highlights the company's ongoing hiring efforts even as it navigates employee retention challenges in a gradually recovering global IT demand environment, though attrition remains below post-pandemic peaks.

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Financially, TCS posted a consolidated net profit of ₹12,760 crore for Q1FY26, a sequential increase of 4.38% from ₹12,224 crore in Q4FY25. However, revenue saw a slight dip of 1.6%, coming in at ₹63,437 crore compared to ₹64,479 crore in the prior quarter. This revenue decline reflects continued client caution regarding discretionary IT spending, though the company maintained profitability through operational efficiencies and a favourable revenue mix.

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Emphasizing its commitment to talent, TCS highlighted significant investments in workforce development. Chief Human Resources Officer Milind Lakkad stated that associates invested 15 million hours in learning during the quarter, focusing on emerging technologies. Notably, the company now boasts over 114,000 employees equipped with higher-order AI skills, underscoring its strategic push to build future-ready capabilities in AI, cloud, and automation.

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