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TCS Headcount Rises While Wage Bill Slips in Q2: Find Out Why
- •Tata Consultancy Services reported a 0.6% sequential decline in employee costs to ₹41,890 crore for the September quarter.
- •The company added 4,258 net employees during the period, bringing total headcount to a five-quarter high of 5.98 lakh.
- •Management attributed the lower employee expenses to reduced payouts for performance-linked bonuses.
- •TCS annualised AI services revenue grew 19% sequentially to $3.1 billion, crossing 10% of the company's overall revenue.
- •Net profit rose 0.25% sequentially to ₹13,884 crore, while revenue increased 1.3% to ₹73,188 crore.
Key Questions Answered
TCS employee costs decreased by 0.6% sequentially to ₹41,890 crore in the September quarter because of lower performance-linked bonus payouts, even as the company added 4,258 net employees to reach a five-quarter high of 5.98 lakh workers.
In Q2 FY27, TCS reported a 0.25% sequential increase in net profit to ₹13,884 crore and a 1.3% rise in revenue to ₹73,188 crore. Additionally, annualised artificial intelligence services revenue grew 19% sequentially to $3.1 billion, accounting for over 10% of total revenue.
Brokerages held mixed views, with CLSA noting that revenue and profit were largely in line with expectations while pointing out that EBIT margins fell slightly short due to higher subcontracting expenses. Meanwhile, Citi maintained a 'Sell' rating citing sluggish growth, whereas Nomura kept a 'Buy' rating due to strong deal bookings.
