“If the macro environment improves, we will give the best possible hikes that we normally give,” Lakkad said, without sharing any guidance on expected percentages.
TCS has typically rolled out annual hikes in the range of 6–10%, but reports suggest this year’s increases may be muted and possibly the lowest in four years, hovering around 4–8%.
The company also indicated a cautious approach to hiring. “Going forward, depending on the business demand, both from the market and campus, we will calibrate and decide how many to get in every quarter,” Lakkad added, responding to a query on bench strength and campus recruitment plans.Revenue misses estimates
The commentary comes alongside a weak Q1 performance. TCS’ constant currency revenue for Q1 FY26 declined 3.3% sequentially, its steepest drop in recent quarters. Revenue stood at ₹63,437 crore, down 1.6% quarter-on-quarter, while in US dollar terms, revenue dipped 0.6%.
CEO K Krithivasan explained that the decline was partly due to the near-completion of the large BSNL deal, which contributed a 2.8% drag. Excluding that impact, revenue would have been roughly 100 basis points higher. International business also declined 0.5%.
He added that the company had anticipated a stronger close to the quarter, but rising global uncertainty since March had resulted in slower client decision-making, deferred project starts, and increased cash conservation.
Also Read: TCS cautious on second quarter recovery, confident on medium-term growth
(Edited by : Ajay Vaishnav)
