TCS Loses INR 24,295 Crore in Four Days Amid Salary Hike Delays and Market Jitters

TCS , the largest IT company in India , lost over INR 24,295 crore in valuation during the short trading week ending April 11. TCS stock fell 3.82 % during the week to close at INR 3,238 . This decline pulled the TCS market valuation down to only INR 11.69 lakh crore . Meanwhile, the overall Indian stock market also lost ground, with the BSE Sensex and Nifty Index each losing over 200 points during the week.

Following the revelation that annual salary increases would be postponed, investors reacted with caution. This was a reaction to what appeared to be a sign that future growth and workforce morale at the IT giant were in jeopardy.

Salary Hike Deferral Triggers Concern

TCS has declared that it will put on hold its planned employee salary hikes for April 2025, attributing the decision to global uncertainty and changing trade dynamics. The announcement came from Milind Lakkad, the company's Chief Human Resources Officer. He pointed out that TCS will reassess its business performance during the year and may implement raises at any time depending on conditions.

Fresh graduate hiring is predicted to stay even or perhaps rise in FY26, but the indefinite nature of the salary hike decision has left employees and analysts in a tizzy trying to figure if this is a not-so-subtle means of achieving cost-cutting objectives in an uncertain global environment.

Tariff Uncertainty Casts a Shadow

The ongoing uncertainty about U.S. tariffs only adds to the pressure. TCS Chief Executive Officer and Managing Director K. Krithivasan articulated these concerns in an earnings conference call, saying he is hopeful the turbulence will turn out to be temporary. He believes the impact on the IT services sector is likely to ease within a few months. Yet, until there is clarity, the sector continues to operate in a climate of hesitation and restrained optimism, an ambiance that has translated into cautious investor sentiment.

The postponement of pay increases, in conjunction with difficulties in trade, appears to have intensified the market's nervousness and to have been a major factor in the company's plummeting market cap this week.

Quarterly Results Reflect Mixed Performance

The company's FY25 Q4 results added yet another layer of convolution. For the March quarter, the net profit slipped down to 12,224 crore and registered a 1.68% year-on-year decline. Revenue, however, rose 5.3% and came in at 64,479 crore. For the full FY25, TCS achieved a net profit of nearly 48,553 crore (5.76% growth), and a revenue number of nearly 2.55 lakh crore that represented nearly 6% growth.

Despite these numbers appearing to show resilience, they were not sufficient to calm markets that are unsettled by the bigger picture. The next few months will be crucial as TCS works its way through the global storms and the internal balancing act of pleasing its various stakeholders.