Amid macroeconomic concerns stemming from the ongoing tariff war between the US and other nations, Tata Consultancy Services (TCS) has announced a deferral of salary hikes that were scheduled to take effect from April. The company will implement the hikes later in the financial year after assessing improved visibility.
Executives at TCS told The Mint that the decision was taken in response to prevailing uncertainty in global markets, particularly due to trade tensions involving the US. The salary revisions will now be rolled out in the later part of FY26, once economic and business conditions stabilise.
The move comes at a time when Indian IT firms are navigating a challenging external environment, marked by client spending cuts, exchange rate fluctuations, and ongoing geopolitical developments. TCS clarified that the deferral is temporary and tied directly to macroeconomic clarity.
TCS reported a consolidated net profit of ₹12,224 crore for the quarter ended March 31, 2025, representing a 1.3% decline from ₹12,380 crore in the previous quarter. Revenue rose marginally by 0.8% quarter-on-quarter to ₹64,479 crore, up from ₹63,973 crore in Q3FY25.
In US dollar terms, revenue stood at $7,465 million, down 1% sequentially. Operationally, the company reported an EBIT of ₹15,601 crore, a decrease of 0.6% quarter-on-quarter. EBIT margin contracted slightly to 24.2% from 24.5% in the previous quarter.
TCS executives noted that near-term demand remains uneven across markets and verticals. Spending delays by clients in key geographies, including North America and Europe, are continuing to impact deal closures and revenue conversion cycles.
The company remains focused on improving cost efficiencies and maintaining its investments in digital capabilities and cloud services. It also indicated that hiring and compensation decisions will continue to be assessed based on business momentum and external developments.
On April 11, 2025, TCS share price opened at ₹3,289.55, up from its previous close of ₹3,246.60. Despite the positive start, the share price closed lower at ₹3,231.50 on the NSE, reflecting a 0.26% intraday loss.
The stock’s 52-week high of ₹4,592.25 was recorded on August 30, 2024. Its 52-week low of ₹3,056.05 was noted on April 7, 2025.
TCS’s decision to defer salary hikes amid global trade tensions highlights the ongoing challenges faced by the IT sector in maintaining stability during uncertain times. Despite a steady revenue increase in the March quarter, pressure on margins and profitability continues to shape near-term decisions.
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Published on: Apr 11, 2025, 4:12 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and asset management, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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