- TCS Q1 FY27 net profit declined 2.7% sequentially to Rs 13,349 crore but met estimates
- Order book fell from $12 billion to $9.5 billion, including a major AI deal with SKF
- AI business reached $2.6 billion annualized revenue run rate with growing client base
Tata Consultancy Ltd.'s highly-anticipated earnings for the first lap of financial year 2027 came out on Thursday, with the IT giant delivering some notable metrics. On the whole, the financial performance was in-line with Dalal Street expectations, even as profit and order book softened.
Here are some key highlights from TCS Q1FY27 results:
Q1 Net Profit Slips, But Meets Expectations
TCS clocked a consolidated bottom-line of Rs 13,349 crore in the quarter under review, down 2.7% sequentially from Rs 13,718 crore in the fourth quarter of fiscal 2026. The dip came as an exceptional item of Rs 668 crore for settlement of legal claims in the quarter ended June.
However, analysts on the D-street had broadly priced in the net profit decline as they expected the IT behemoth to report a bottom-line of Rs 13,504 crore, which is only slightly higher than what the company delivered.
Order Book Shrinks Sequentially
The company's order book declined from $12 billion in quarter-ended June 30, 2026 to $9.5 billion in the quarter under review. According to the CEO and MD K Krithivasan, the order book included a marquee AI-led transformation deal with SKF.
Follow live TCS updates here.
AI Business Gains Traction
On the back of the marquee AI-led transformation deal with SKF, and addition of clients across key revenue bands, TCS' AI business scaled to a $2.6 billion annualised revenue run rate.
"As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth," outlined CEO Krithivasan.
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Employee Exits Higher Than Anticipated
India's largest information technology (IT) services giant reported a voluntary attrition of 13.6% in the first quarter of FY27, compared with the Bloomberg consensus estimate of 11.5%. The headcount stood at 5,93,798 employees at the end of the quarter, versus an estimate of 5,91,437.
There was a marginal drop in the attrition rate compared to 13.7% in the previous quarter. Notably, the co's headcount rose by over 9,000 employees to 5,93,798 from 5,84,519 in the March quarter of last fiscal.
Dividend Fails To Meet Expectations
The software services firm declared an interim dividend of Rs 12 per share, missing Bloomberg analysts' consensus estimate of Rs 19.
ALSO READ: TCS Declares Dividend Of Rs 12 Per Share As Q1 Profit Meets Estimates; Check Record Date
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