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TCS Cuts Quarterly Variable Pay for Q2 Amid Margin Pressure
M
Moneycontrol•09-10-2026, 00:07
TCS Cuts Quarterly Variable Pay for Q2 Amid Margin Pressure
- •Tata Consultancy Services has rolled out lower performance-linked bonuses for employees for the July-September quarter.
- •Chief Financial Officer Samir Seksaria stated the move balances employee expenses and strategic business investments amid margin pressures.
- •Operating margins are expected to take a 50 bps hit after the upcoming acquisition of Porsche IT arm MHP closes.
- •TCS continues to invest in capability-based acquisitions, AI-led infrastructure, and data centres while expanding bench strength.
- •The company reported sequentially flat operating margins at 24 percent in Q2 and onboarded about 10,000 freshers.
Key Questions Answered
TCS kept a lower outlay for performance-linked bonuses during the July-September quarter to balance employee expenses and strategic business investments amid ongoing margin pressures.
TCS Chief Financial Officer Samir Seksaria stated that the company's operating margins will take a 50 basis points hit once the $373-million acquisition of Porsche’s IT arm MHP officially closes.
TCS reported sequentially flat operating margins at 24 percent in Q2. Meanwhile, the company expanded its bench strength by onboarding about 10,000 freshers, with overall net headcounts growing by 4,258 sequentially, alongside increased hiring of subcontractors.
