TCS Adds 10,000 Freshers in Q2 FY27 as IT Major Adopts Demand-Led Hiring

Tata Consultancy Services (TCS), the biggest IT services provider in India, announced that it will hire on demand in response to increasing growth in its biggest market and overseas income. Ten thousand new employees joined TCS throughout the quarter.

There were a total of 598,056 employees as of June 30, 2026, an increase of 4,258. The firm hired 14,000 new employees in the first quarter. During the analysts' call, chief human resources officer Sudeep Kunnumal stated that the company is hiring in response to demand. Furthermore, it will continue to hire since it anticipates strong demand for these technologies.

Future Employment Roadmap of TCS

Through recruiting top talent and facilitating employee upskilling, the organisation maintains its commitment to preparing its staff for the future. A 17% sequential rise to 17.1 million learning hours was driven by investments in learning and essential skills. The organisation is still hiring new personnel and lateral hires, according to Kunnumal. He said that TCS's hiring approach still maintains a mix between internal competency, early career talent, and experienced people.

Its commitment to investing in continuous learning, enhancing deployment readiness, bolstering subject expertise, and artificial intelligence (AI) remains constant as customer needs change. The last twelve months have seen TCS devote a lot of resources to AI and other technological advancements that will aid in massive reskilling and education programmes. Kunnumal brought attention to such developments during the analyst call following the announcement of Q2 FY27 results.

Financial Dynamics of TCS

Among the second quarter's targeted investments, according to TCS management, were strategic partnerships, activities pertaining to mergers and acquisitions, and the recruitment of specialised talent. To address its near-term skill and delivery needs, TCS has been investing in a greater bench and increasing hiring of subcontractors, according to Samir Seksaria, chief financial officer of TCS. This is in order to develop future capacity and handle demand shifts. Expenses pertaining to subcontractors have gone up for TCS. Subcontractor expenses increased from 5.9% of revenue in Q1 FY27 to 6.8% of revenue overall.

One possible explanation for the increase in subcontractors is the tightening of visa requirements in the US. On October 8, TCS released its financial results for the second quarter of FY27. From INR 13,349 crore in the previous quarter, the business saw a 4% sequential increase to INR 13,884 crore in net profit. After removing a one-time loss from the first quarter's settlement of a legal claim, net earnings increased slightly from INR 13,849 crore.

A recent poll by CNBC-TV18 predicted a profit of INR 13,673 crore; however, the actual profit was higher. Consolidated income from operations for the business increased 1.3% from the previous quarter to INR 73,188 crore from INR 72,275 crore, which is in line with the INR 73,225 crore forecast by CNBC-TV18. Income increased by 11.2% compared to the previous year. Compared to the 24.2% predicted in the CNBC-TV18 survey, the operating margin stayed unchanged sequentially at 24.0%. The estimated yearly revenue from artificial intelligence increased to $3.1 billion, while the overall contract value for TCS was $9.6 billion. The revenue generated by AI currently exceeds 10% of the total revenue.