TCS adds over 5,000 employees in Q1; attrition edges up to 13.8%

Tata Consultancy Services (TCS), the country’s largest IT services firm, reported a steady rise in hiring during the June quarter, with net headcount addition of 5,090 employees over the previous quarter and 6,071 employees year-on-year.

The total employee strength stood at 613,069 at the end of June 2025, up from 607,979 at the end of March. This marks the second straight quarter of net additions after a phase of muted hiring across the IT sector.

The company also noted continued investment in workforce development.
“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. It is gratifying to note that TCS now has 114,000 people with higher order AI skills,” said Milind Lakkad, Chief Human Resources Officer.
The Last Twelve Months (LTM) attrition rate stood at 13.8% compared to 13.3% in Q4 FY25.

TCS	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26
Headcount	615318	608895	603305	601546	606998	612724	607354	607979	613069
Net QoQ	523	-6333	-5590	-1759	5452	5726	-5370	625	5090
Attrition	17.80%	14.90%	13.30%	12.50%	12.10%	12.30%	13%	13.30%	13.80%

Sandip Agarwal, Fund Manager at Sowilo Investment Managers, saw the uptick in hiring as a silver lining in an otherwise uneventful quarter.

“The TCS earnings as such is a no event. However, one of the silver linings is that they have added headcount, which is up by 5,000 on a quarter-on-quarter basis with an increased attrition. So, that is a positive sign. It means that they are optimistic about the demand environment,” he said.

Market expert Prakash Diwan echoed the sentiment, calling the increase in workforce one of the few positives in the numbers. “If I force myself to see some of the silver lining, it is the TCV and the workforce kind of going up. So, they are gearing up for some sort of improvement,” he added.

Shares of Tata Consultancy Services ended the session 0.33% higher at ₹3,395 on the NSE on Thursday, ahead of the earnings announcement.

The company also announced an interim dividend of ₹11 per share, with a record date of July 16 and payout slated for August 4, 2025.