The benchmark indexes have outperformed TCS’s share price by a considerable margin. The stock has dropped more than 23% in the last six months and 10% in the last month. Over the last five years, TCS shares have returned a meagre 33%, but on a one-year basis, they have dropped 30%.
Following the IT giant’s announcement that it would cut its global workforce by 2% in FY26, TCS’s share price fell by almost 2% in early trading on Monday. One of the biggest laggards in the Nifty IT index, TCS shares fell as high as 1.69% to ₹3,081.20 per on the BSE. The Nifty IT index fell 1.6% as competitors Infosys and Wipro also had declines of more than 1% each.
In FY2025-26, Tata Consultancy Services (TCS), the biggest exporter of software services in India, intends to eliminate 12,261 positions, mainly affecting middle and senior management staff. The corporation added 5,000 employees during the April–June quarter, bringing its total employment to 6,13,069 as of June 30, 2025.
As part of its plan to become a “future-ready organisation,” TCS is reducing its personnel and putting more of an emphasis on market expansion and AI deployment.
In the meantime, CEO and MD K Krithivasan explained in an interview with Moneycontrol that the layoffs are not because of a reduction in the need for employees, but rather because of skill mismatches and difficulties with staff deployment. “We will keep finding and developing top talent. This has more to do with deployment viability,” he stated.
The action was taken shortly after TCS modified its employee bench policy, which now limits time on the bench to less than 35 days and requires employees to maintain at least 225 billable days yearly.
As of June 2025, TCS’ last-twelve-month (LTM) attrition rate increased to 13.8%, which was somewhat higher than the 13.3% rate from the previous quarter. The CFO of the company pointed out that attrition had escalated to a worrying degree and underlined the need for a renewed emphasis on keeping top personnel, which is hard to replace through new hires.
On July 10, TCS reported that its first quarter FY26 consolidated net profit increased by 4.38% to ₹12,760 crore from ₹12,224 crore in the previous quarter, which ended in March 2025. From ₹64,479 crore in Q4FY25 to ₹63,437 crore in Q1FY26, TCS’s consolidated revenue from operations fell 1.6%. Dollar-wise, revenue decreased by 0.6% from $7,465 million to $7,421 million.
Operationally, EBIT decreased 0.6% QoQ to ₹15,514 crore in the June quarter, but the EBIT margin increased 30 basis points to 24.5% from 24.2% QoQ. The interim dividend of ₹11 per equity share was announced by the TCS board.
Performance of the TCS Share Price
The benchmark indexes have outperformed TCS’s share price by a considerable margin. The stock has dropped more than 23% in the last six months and 10% in the last month. Over the last five years, TCS shares have returned a meagre 33%, but on a one-year basis, they have dropped 30%.
The price of TCS shares was down 1.25% at ₹3,095.25 per share on the BSE at 9:40 AM.
