TCS Loses ₹24,295 Crore in Market Cap in 4 Days Amid Salary Hike Delay
Tata Consultancy Services (TCS), India’s largest IT services company, witnessed a massive erosion of ₹24,295.46 crore in its market capitalization during a holiday-shortened trading week from April 7 to April 11. This decline came on the heels of the company’s announcement to defer employee salary hikes originally scheduled for April 2025, citing global economic uncertainty and concerns over US tariffs.
TCS shares dropped by 3.82%, closing at ₹3,238 on Friday, April 11. Consequently, the firm’s market cap fell to ₹11,69,474.43 crore. The announcement came just ahead of the company’s Q4 FY25 results and spurred investor concerns despite relatively stable financial performance. The broader markets also faced pressure, with the BSE Sensex dipping 207.43 points (0.27%) and the NSE Nifty falling 75.9 points (0.33%) during the same week. Markets remained closed on Thursday, April 10, due to Shri Mahavir Jayanti.
TCS Chief HR Officer Milind Lakkad stated, “Because of the uncertain environment, we will decide during the year on wage hikes. It can be at any time, depending on business.” He also mentioned that fresher hiring in FY26 may remain at the same level or even rise.
TCS CEO and MD K Krithivasan addressed the uncertainty around US tariffs, saying the impact is likely to be short-lived and may be resolved within a few months.
Despite the macroeconomic headwinds, TCS reported a consolidated net profit of ₹12,224 crore for the March quarter, down 1.68% from the previous year. However, revenue stood at ₹64,479 crore, reflecting a 5.3% year-on-year increase. For FY25, the company’s net profit rose 5.76% to ₹48,553 crore, with annual revenue climbing 5.99% to ₹2,55,324 crore.
Investors will closely watch TCS’ next move regarding employee compensation and its strategy to weather ongoing global challenges.
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