Tata Consultancy Services Ltd. reported voluntary employee attrition for the April-June quarter of current fiscal (Q1FY27) above Bloomberg estimates, while its headcount was broadly in line with expectations. India's largest information technology (IT) services giant reported a voluntary attrition of 13.6% in the first quarter of FY27, compared with the Bloomberg consensus estimate of 11.5%. The headcount stood at 5,93,798 employees at the end of the quarter, versus an estimate of 5,91,437.
TCS announced its June quarter results for fiscal 2026-27 on Thursday, July 9, post-market hours. The attrition rate in the quarter-under-review dropped to 13.6% compared to 13.7% in the preceding fourth quarter of FY26. The software services giant's headcount in the June quarter rose by over 9,000 employees to 5,93,798 from 5,84,519 in the March quarter of last fiscal.
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Samir Seksaria, Chief Financial Officer (CFO), TCS said, “In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness.'' TCS had announced that it had implemented annual salary increases across all grades effective April 1, 2026, while declaring Q4 FY26 earnings results.
TCS closed the financial year 2025-26 (FY26) with a total employee headcount of 5,84,519. In the year-ago period, TCS had disclosed plans to slash its workforce by 2% in FY26, affecting the middle and senior management after Q1FY26 earnings.
Commenting on the company's Q1 performance, Sudeep Kunnumal, Chief HR Officer, TCS said “This quarter, we completed annual salary increments for all associates globally and aligned salary structures with the new India Labour Code requirements. We continue to invest in AI infrastructure, next-generation skill development platforms, to enable our people to be futureready, while fostering a workplace where every associate feels safe, valued, trusted and empowered to grow”.
TCS Q1 Attrition
On a sequential basis, the total workforce increased by 9,279 employees to 5,93,798 in the April-June quarter compared to 5,84,519 employees in the preceding fourth quarter of FY26, TCS declared in its Q1 earnings presentation. However, on an annual basis, the company's total headcount declined by 19,271 employees from 6,13,069 in the year-ago period. The voluntary last-12 months (LTM) attrition rate dropped marginally to 13.6% from 13.7% on a sequential basis.
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TCS Q1 Results
The company's net profit fell 2.7% at Rs 13,349 crore in the first quarter of this fiscal. This is in comparison to profit of Rs 13,718 crore in the fourth quarter of fiscal 2026, according to its stock exchange notification on Thursday. This comes as there was an exceptional item of Rs 668 crore for settlement of legal claims in the quarter ended June. Consolidate revenue advanced by 2.2% quarter-on-quarter for the three months ended June, hitting Rs 72,275 crore in comparison to Rs 70,698 crore.
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