TCS Q4 Results: Headcount rises 625 QoQ despite a 13.3% attrition rate in last 1 year

Tata Consultancy Services (TCS) reported a 13.3 percent attrition rate over the last twelve months in the quarter ended March FY25, slightly higher than the 13 percent seen in the previous quarter. However, India’s largest IT services firm continued to expand its workforce, adding a net 6,433 employees during the period. This took its total headcount to 607,979, up from 601,546 in Q4 FY24. On a sequential basis, the workforce grew by 625 from the December 2024 quarter’s count of 607,354.

Focus on Upskilling and Diversity

The company maintained its commitment to employee development and inclusion. Women now comprise 35.2 percent of TCS’s workforce, which spans 152 countries. In FY25, employees logged 56 million learning hours and gained 5.2 million new competencies, showcasing the company's sustained focus on upskilling and talent development.

TCS Chief Human Resources Officer Milind Lakkad highlighted the firm’s continued emphasis on a holistic work culture. “Our trainee onboarding in FY25 was 42,000 as planned. We continue to enjoy the pride of place as the employer of choice and the industry-best retention rate by prioritising a culture of professional and personal growth, wellbeing, and purpose-driven engagement for our associates,” he said in a regulatory filing.

Reversing Last Year’s Headcount Decline

The hiring uptick comes after a rare decline in FY24, when TCS saw its employee base contract for the first time since it was listed in 2004. This marked a significant departure from previous years—TCS had added 22,600 employees in FY23 and over 1.03 lakh in FY22. The recent addition indicates a stabilising trend in workforce management, even as the company faces ongoing global macroeconomic pressures.

Q4 Financials Reflect Sector Headwinds

Despite the headcount growth, TCS’s Q4 FY25 financial results reflected the broader challenges confronting the IT sector. The company’s consolidated net profit dipped nearly 2 percent year-on-year to ₹12,224 crore, compared to ₹12,434 crore in the same period last year. Revenue from operations, however, rose 5.3 percent year-on-year to ₹64,479 crore, up from ₹61,237 crore in Q4 FY24.

Final Dividend Announced

TCS also announced a final dividend of ₹30 per equity share for the fiscal year, subject to shareholder approval. “The Directors have recommended a Final Dividend of INR 30 per Equity Share of INR 1 each of the Company which shall be paid/dispatched on the fifth day from the conclusion of the 30th Annual General Meeting,” the company said in its exchange filing.

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