India’s top IT services firms—Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies—have released their Q1 FY26 results, offering insights into their hiring strategies, salary revisions, and business outlook.
While Infosys posted relatively stronger numbers, the overall sentiment across the sector remains cautious due to global macroeconomic headwinds, delayed client spending, and evolving demand patterns.
TCS: Prioritizing Wage Hikes, Cautious on Lateral Hiring
- Hiring Plans: TCS added 5,090 employees in Q1, bringing its total headcount to 6,13,069. The company plans to hire 42,000 freshers in FY26, maintaining its annual recruitment rhythm.
- Salary Hikes: While TCS has not finalized its wage hike timeline, CFO Samir Seksaria emphasized that salary hikes for over 6 lakh employees remain a priority. The company has historically avoided deferrals, but no formal decision has been announced yet.
- Attrition and Strategy: Attrition rose slightly to 13.8%, prompting a renewed focus on retention over lateral hiring. TCS may slow lateral recruitment until demand improves.
- Guidance: No formal revenue guidance was issued, but CEO K. Krithivasan indicated that international client spending may improve once market clarity returns.
Infosys: Wage Hikes Implemented, Hiring Momentum Steady
- Hiring Plans: Infosys increased its headcount to 3,23,788, with plans to hire over 20,000 freshers in FY26.
- Salary Hikes: Infosys completed its two-phase wage hike—first in January 2025, and second in April 2025. Average hikes ranged from 5–8%, with top performers receiving 10–12%.
- Attrition: Voluntary attrition stood at 14.4%, slightly up from the previous quarter, indicating ongoing churn despite retention efforts.
- Guidance: Infosys revised its FY26 constant currency revenue growth guidance to 1–3%, up from the earlier 0–3% range.
Wipro: Hiring Cautious, Salary Hike Decision Deferred
- Hiring Plans: Wipro’s headcount declined by 114 to 2,33,232. The company plans to hire 10,000–12,000 freshers in FY26 but remains cautious amid demand uncertainty.
- Salary Hikes: Wipro has not announced salary hikes for FY26. CHRO Saurabh Govil stated that the decision will be made closer to the date, depending on macroeconomic conditions and business performance.
- Attrition: Attrition rose slightly to 15.1%, the highest among the four firms, reflecting talent retention challenges.
- Guidance: Wipro expects Q2FY26 IT services revenue to range between $2,560 million and $2,612 million, translating to -1% to +1% growth in constant currency terms.
HCL Tech: Specialist Hiring Focus, Wage Hikes in October
- Hiring Plans: HCL Tech’s headcount dropped by 269 to 2,23,151, but it added 1,984 freshers in Q1. The company plans to increase fresher hiring by 15–20% this fiscal, focusing on specialized roles.
- Salary Hikes: HCL Tech will begin its wage hike cycle in October 2025. Average hikes are expected to be 7%, with top performers receiving up to 15%.
- Attrition: HCL Tech reported the lowest attrition rate among peers at 12.8%, indicating stronger employee retention.
- Guidance: The company revised its FY26 constant currency revenue growth guidance to 3–5%, down from 2–5%, and lowered EBIT margin expectations to 17–18%.
Infosys, Wipro, TCS, HCLTech: Conservative Growth, Skill-Centric Hiring
The Indian IT sector continues to face muted demand, especially in discretionary spending.
Companies are shifting from volume hiring to skill-based recruitment, particularly in AI, cloud, and cybersecurity.
Attrition remains a concern, prompting targeted retention strategies.
While Infosys leads in deal wins and revenue growth, TCS and HCL Tech are focusing on profitability and operational efficiency.
Wipro remains the most cautious, awaiting clearer demand signals before committing to compensation changes.
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