TCS hiring trend firms up
AI-led disruption seen easing | After two quarters of decline, headcount grows 2,356 in Q4
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Bengaluru: TCS’ return to headcount growth in the fourth quarter of FY26, after two consecutive quarters of decline, signals a possible stabilisation in hiring trends at India’s largest IT services exporter.
During the October–March period of FY26, the company’s workforce declined by more than 30,000 as it undertook employee optimisation measures. Headcount fell by 11,151 in Q3 and by 19,700 in Q2 of FY26.
However, this trend reversed in Q4, with TCS adding 2,356 employees sequentially, taking its total headcount to 584,519 at the end of March 2026.
“Unlike the past two quarters, employee headcount has started increasing. While macroeconomic conditions remain unchanged, TCS performance has improved in Q4,” said Pareekh Jain, IT outsourcing advisor and founder of Pareekh Consulting. Reports indicate that TCS has already rolled out 25,000 offer letters to fresh engineering graduates for FY27 as part of its campus hiring plan. In comparison, the company hired 44,000 freshers in FY26.
Attrition in the March quarter rose slightly by 20 basis points sequentially to 13.7 per cent. Industry sources suggest involuntary attrition continues across IT firms amid AI-led disruption.
Analysts note that BFSI and energy & utilities verticals are showing relative strength, which could support a gradual improvement in growth momentum compared to last year.
“Currently, macro conditions remain stable. BFSI and energy segments are performing better. Future growth will depend on the pace of the AI investment cycle,” Jain added.
TCS reported $2.3 billion in annualised revenue contribution in FY26, accounting for 7.6 per cent of total turnover.
Industry experts believe that unless enterprises significantly increase spending on AI-driven transformation, revenue growth acceleration may remain limited.
“TCS’ revenue per employee has improved again, but incremental margins remain muted. AI-related pricing pressure and weak demand are absorbing productivity gains,” said Motilal Oswal Financial Services in a note.
