Tata Consultancy Services (TCS), India’s largest IT services exporter, reported a marginal increase in its employee attrition rate for the quarter ended June 30, 2025 (Q1FY26). The company’s attrition stood at 13.8 percent on a last twelve months (LTM) basis, up from 13.3 percent in the previous quarter. This comes even as the company continues to invest heavily in workforce training and capability development.
Attrition Edges Higher; Workforce Expands
TCS reported an LTM attrition rate of 13.8 percent in Q1FY26, reflecting a slight uptick in employee exits compared to 13.3 percent in the March 2025 quarter. Despite this rise, the company expanded its workforce by adding over 5,000 employees during the quarter. As of June 30, 2025, TCS’s total employee strength stood at 613,069, up from 607,979 in the previous quarter.
The attrition number, while still lower than the highs seen during the peak of the post-pandemic hiring cycle, indicates that employee retention remains a challenge amid a gradually recovering global IT demand environment.
Focus on Learning and AI Capability Building
Commenting on the company’s people strategy, Milind Lakkad, Chief Human Resources Officer at TCS, said, “Talent development is core to TCS. In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers.”
He also highlighted that the company now has over 114,000 employees with higher-order AI skills, a reflection of TCS’s continued focus on future-ready talent in areas such as artificial intelligence, cloud, and automation.
Q1FY26 Financial Performance
TCS reported a consolidated net profit of ₹12,760 crore for the first quarter of FY26, registering a sequential growth of 4.38 percent over the ₹12,224 crore posted in the March 2025 quarter. The company’s revenue, however, saw a minor decline of 1.6 percent, coming in at ₹63,437 crore, compared to ₹64,479 crore in Q4FY25.
The dip in revenue reflects client caution in discretionary IT spending, though TCS managed to maintain healthy profitability, aided by operational efficiencies and a favourable revenue mix.
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