TCS Q4 FY26: Attrition rises to 13.7%; 2,356 employees added during the quarter

Tata Consultancy Services (TCS) on Thursday reported a slight uptick in employee attrition for the fourth quarter of FY26, even as India’s largest IT services exporter added over 2,000 employees sequentially.

The company said its last twelve months (LTM) voluntary attrition rate rose to 13.7%, up from 13.5% in the previous quarter, indicating a marginal increase in employee exits.

Despite the rise in attrition, TCS added 2,356 employees during the January-March quarter, taking its total headcount to 584,519, compared with 582,163 in the December quarter.


However, on a year-on-year (YoY) basis, the workforce declined by a sharp 23,460 employees, down from 607,979 in the year-ago period, underscoring the impact of earlier cost optimisation and restructuring measures.

In July 2025, TCS had also announced plans to reduce its workforce by about 2%, primarily affecting middle and senior management roles.

The company has also unveiled wage hikes. Sudeep Kunnumal, chief HR officer at TCS, said, “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."

Employee upskilling measures

Alongside workforce adjustments, the company highlighted continued investments in employee upskilling. TCS reported 5.2 million competencies acquired during FY26 and 69 million total learning hours clocked by employees over the year. Women accounted for 35.2% of the total workforce, according to the company’s statement.

"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," Kunnumal added.

Also Read: TCS is asking staff to use AI even if it hits revenues: CEO K Krithivasan

Deal momentum picked up

On the business front, TCS maintained strong deal momentum. The company reported a total contract value (TCV) of $40.7 billion for FY26, including $12 billion in the fourth quarter alone. It also secured three mega deals in Q4 and five across the full fiscal year, including strategic partnerships with OpenAI, AMD, and Swedish multinational corporation ABB.

The IT major reported a 12% YoY growth in consolidated net profit, which stood at Rs 13,718 crore in the fourth quarter. Revenue from operations rose 10% YoY to Rs 70,698 crore.

Also Read: TCS rides AI demand; mega deals power Q4 results