TCS, India’s largest IT services company, has announced a delay in salary hikes for its employees in the new financial year. This comes after the company reported lower-than-expected fourth-quarter results, which disappointed investors.

In its financial update, TCS said it had 6,07,979 employees as of March. Due to global business uncertainty, the company stated that pay hikes will be postponed until conditions improve in the later quarters. Chief Human Resources Officer Milind Lakkad said a decision on salary hikes will be made at the appropriate time.

Investor concerns over a possible US recession have led to a sell-off in Indian IT stocks, pushing many to their 52-week lows. Sujan Hazra, an analyst at Anand Rathi, noted that TCS’s move reflects ongoing global uncertainty, but added that Indian IT firms are unlikely to face severe long-term impact.

Despite current challenges, TCS remains optimistic. The company expects better business in the new financial year and strong international growth. It also highlighted that its banking and finance segment continues to perform well, contributing up to 30% of its total revenue.

However, concerns remain about US-based clients and the potential impact of future US policies, such as tariffs. Since nearly 60% of Indian IT revenue comes from US markets, companies are watching developments closely and working to control costs—raising fears of fewer job opportunities in the near future.