TCS attrition rate holds steady at 13.8% in Q1 FY26, headcount stands at 613,069

Tata Consultancy Services (TCS) on Thursday announced its Quarter 1 results for the fiscal year 2025. The IT services firm reported a 13.8 percent attrition rate over the last twelve months in the quarter ended on June 30, 2025, slightly higher than the 13.8 percent recorded in Q4 of FY25.

The software giant's workforce strength stood at 613,069, with 6,071 employees added in Q1.

According to the stock exchange filing, TCS's profit soared to Rs 12,760 crore during the April-June quarter--an increase of 6 percent year-on-year in fiscal year 2026. Moreover, the total revenue witnessed a marginal rise of 1.31% to Rs 63,437 crore in Q1 FY26. In the previous fiscal in Q1, TCS clocked a total income of Rs 62,613 crore.

The banking and financial services segment revenue stood at Rs 24,736 crore, followed by consumer business at Rs 10,155 crore, Communication, Media & Technology at Rs 9,436 crore, and Manufacturing at Rs 6,401 crore, respectively.

TCS attrition rate holds steady at 13.8% in Q1 FY26, headcount stands at 613,069

TCS' Chief Executive Officer and Managing Director, K Krithivasan, mentioned that all services witnessed growth during the quarter despite the global macroeconomic and geopolitical uncertainties.

Notably, Artificial Intelligence (AI) and Data unit delivered robust growth during the June quarter of FY26. "Demand was led by AI-led transformation, SDLC/IT-Ops automation, and data-platform modernization," TCS said in its Q1 FY26 report.

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"We are investing across the AI ecosystem, including infrastructure, data platform solutions, AI agents, and business applications. Launching TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defense Suite, to accelerate India’s AI-led transformation, was a particular highlight of this quarter," Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said.

Besides AI, the growth for the quarter was led by TCS Interactive and Cyber Security, the filing added. TCS Interactive is a business focused on operational excellence and innovation.

"We continued our investments in long-term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry-leading profitability alongside robust cash conversion positions us well to make strategic investments for the future," according to TCS' Chief Financial Officer Samir Seksaria said.