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TCS Q4 Attrition Rises to 13.7% Amid Workforce Restructuring & AI Push

Tata Consultancy Services reported a slight increase in its attrition rate to 13.7% for the fourth quarter of FY26. Despite this, the company's headcount grew by over 2,300 employees in the March quarter, though it shows a significant annual decline. TCS announced annual salary increases and emphasized its continued investment in building an AI-ready workforce. The IT major also posted strong financials with a 12% year-on-year rise in consolidated net profit.

Key Points: TCS Q4 FY26 Attrition at 13.7%, Headcount & Profit Rise

  • Attrition edges up to 13.7%
  • Headcount rises by 2,356 in Q4
  • Net profit jumps 12% YoY
  • Annual salary hikes effective April 1
2 min read

TCS attrition edges up to 13.7 pc in Q4 FY26 even as headcount rise

TCS reports Q4 FY26 attrition of 13.7%, a net headcount increase of 2,356, and a 12% YoY profit jump. The firm focuses on AI skills and salary hikes.

"Building an AI‑first culture and equipping our people with AI‑ready skills remained a key priority - Sudeep Kunnumal"

New Delhi, April 9

IT services major Tata Consultancy Services on Thursday reported a slight rise in last‑12‑months attrition rate to 13.7 per cent in the fourth quarter, up from 13.5 per cent a year earlier.

The tech giant also saw its headcount increase by 2,356 employees in the March quarter to 5,84,519, up from 5,82,163.

"Women make up 35.2 per cent of total employee strength," the software services firm said, adding that employee headcount dipped by 30,906 from the first quarter of FY26, after the restructuring program.

It added that on an annual basis the headcount declined by 23,460 employees from 6,07,979 in the previous year.

"We are pleased to implement annual salary increases across all grades effective 1st April. In Q4, we continued to invest in a future‑ready workforce with strong additions across experienced talent and campus hires," said Sudeep Kunnumal, Chief HR Officer.

"Building an AI‑first culture and equipping our people with AI‑ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with our customers' evolving needs," he added.

In July 2025, TCS had announced plans to cut its workforce by 2 per cent in FY26, particularly the middle and senior management.

The company reported a 12 per cent year-on-year (YoY) jump in consolidated net profit for the January-March quarter (Q4 FY26).

The major IT player had posted a profit of Rs 13,718 crore, compared to Rs 12,224 crore in the year-ago period (Q4 FY25), according to its exchange filing.

The IT major's consolidated revenue from operations also saw healthy growth, increasing 9.6 per cent year-on-year to Rs 70,698 crore, compared to Rs 64,479 crore in Q4 FY25.

On a sequential basis, TCS reported an even sharper improvement, with profit jumping 28.7 per cent quarter-on-quarter (QoQ), while revenue rose 5.4 per cent.

Commenting on the results, Chief Executive Officer and Managing Director K Krithivasan said the company has now delivered its third consecutive quarter of sequential growth.

- IANS

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Reader Comments

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Priya S
Good to see the annual salary increases are being implemented. In this market, retaining talent is as important as hiring. The slight uptick in attrition is a concern though - hope the hikes are substantial enough.
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Sarah B
The numbers tell a clear story: restructuring, headcount reduction, but increased profit. It's a tough environment for mid and senior level professionals. The "AI-first culture" push means many traditional roles are becoming redundant.
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Aman W
While the profit jump is impressive, we must look at the human cost. A net reduction of 30k+ employees in a year is significant, even with campus hires. Hope the restructuring was handled with empathy for those impacted.
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Karthik V
Positive to see sequential growth for three quarters. TCS navigating the global tech slowdown better than some peers. The focus on AI-ready skills is the way forward for the entire Indian IT sector. 🇮🇳
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Nisha Z
The 35.2% women workforce number is something to be proud of. In a tough year with layoffs, maintaining diversity metrics is important. Hope the campus hires this quarter reflect this commitment as well.

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