Mumbai: Tata Consultancy Services (TCS), a leading IT services provider, has announced its intention to recruit 42,000 new graduates in the fiscal year 2025-26, continuing its hiring trend from the previous year. However, the company has not yet made decisions regarding salary increases due to ongoing uncertainties in demand.

At the conclusion of FY25, TCS's workforce stood at 607,979, having added 625 employees in the last quarter. The company successfully onboarded 42,000 fresh graduates throughout the fiscal year.

"We have successfully integrated 42,000 trainees in FY25, and we anticipate a similar or slightly increased number for FY26," stated Milind Lakkad, TCS's Chief Human Resources Officer. "Decisions regarding wage increases will be made during the year, taking into account the unpredictable business landscape."

Campus recruitment remains a key strategy for TCS, although future hiring will be influenced by market conditions and the evolving demand for skills. Lakkad noted that the company is also looking for talent in specialized and emerging technologies and plans to expand its recruitment efforts globally.

Despite the rising interest in artificial intelligence (AI), TCS does not foresee a decrease in hiring needs. Instead, the company views AI as a catalyst for growth, anticipating an increased demand for skilled professionals as businesses adopt AI solutions more extensively.

The attrition rate at TCS saw a slight increase to 13.3% in Q4, up from 13% in the previous quarter. However, the company considers this minor rise to be manageable, highlighting that its annualized attrition rate has improved by 130 basis points.

In its fourth-quarter earnings report released Thursday, TCS met analyst expectations. The company pointed out delays in project initiations and client decision-making, influenced by ongoing geopolitical issues and recent U.S. tariff announcements. Although there were early signs of recovery in discretionary spending, TCS noted a slowdown in momentum in recent weeks.

Despite facing short-term challenges, TCS remains cautiously optimistic. "Based on our current order book, we expect the calendar year 2025 to outperform 2024," the management expressed.