Thursday, October 2, 2025
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TCS Adds 6,071 Employees in Q1, Strengthens AI Talent Base

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Tata Consultancy Services (TCS) reported a 5.98% year-on-year (YoY) increase in net profit for Q1 FY26, reaching ₹12,760 crore, up from ₹12,040 crore in Q1 FY25.

On a quarter-on-quarter (QoQ) basis, profit rose 4.38%, compared to ₹12,224 crore in Q4 FY25.

Revenue for the quarter stood at ₹63,437 crore, marking a 1.3% YoY growth, but showing a 1.6% sequential decline from ₹64,479 crore in Q4 FY25.

On a constant currency basis, revenue dipped 3.1% YoY, reflecting cautious client spending amid global macroeconomic uncertainties.

The company declared an interim dividend of ₹11 per share, with the record date set for July 16 and payout scheduled for August 4.

TCS Headcount and Talent Development: Strong Growth

TCS added 6,071 employees during Q1 FY26, bringing its total workforce to 613,069 as of June 30, 2025.

This marks a significant increase from 607,979 employees in Q4 FY25 and 606,998 in Q1 FY25, indicating a renewed hiring momentum after a period of muted additions.

The company continues to invest heavily in talent development.

Associates logged 15 million hours of upskilling, acquiring 1.3 million competencies in emerging technologies.

TCS now has 114,000 employees trained in higher-order AI skills, up from 110,000 in Q4 FY25.

Attrition Trends, Strategic Partnerships and Deal Wins

The IT services attrition rate rose to 13.8% in Q1 FY26, compared to 13.3% in Q4 FY25 and 13% in Q3 FY25.

While still below pandemic-era highs, the increase reflects ongoing industry-wide talent churn.

TCS reported a Total Contract Value (TCV) of $9.4 billion in Q1 FY26, up from $8.3 billion in Q1 FY25, driven by large transformative deals focused on AI-led business transformation, cloud modernization, and vendor consolidation.

Key launches included:

  • TCS SovereignSecure™ Cloud
  • TCS DigiBOLT™
  • TCS Cyber Defence Suite

The company also deepened its partnership with Microsoft, focusing on enterprise AI deployments and digital core modernization.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus