- TCS Q1 net profit fell 2.7% to Rs 13,349 crore from Rs 13,718 crore in Q4 FY26
- Revenue rose 2.2% to Rs 72,275 crore driven by 0.4% constant currency growth
- Operating income dropped 3.1% to Rs 17,317 crore, margins contracted to 24%
Tata Consultancy Services Ltd. net profit fell 2.7% at Rs 13,349 crore in the first quarter of this fiscal. This is in comparison to profit of Rs 13,718 crore in the fourth quarter of fiscal 2026, according to its stock exchange notification on Thursday. This comes as there was an exceptional item of Rs 668 crore for settlement of legal claims in the quarter ended June.
Consolidate revenue of the IT giant advanced by 2.2% quarter-on-quarter for the three months ended June, reaching Rs 72,275 crore in comparison to Rs 70,698 crore. Operating income, or earnings before interest and taxes fell 3% to Rs 17,317 crore from Rs 17,870 crore. Margins contracted to 24% from 25.3% in the previous quarter due to hike in wages.
TCS Q1 Result Highlights (Consolidated, QoQ)
- Net profit down 2.7% to Rs 13,349 crore versus Rs 13,718 crore.
- Revenue up 2.2% to Rs 72,275 crore versus Rs 70,698 crore.
- Ebit down 3.1% to Rs 17,317 crore versus Rs 17,870 crore.
- Margin at 24% versus 25.3%.
The comapny also declared a dividend of Rs 12 per share, versus an estimate of Rs 19, as per an exchange filing from the company. The record date for determining the eligbility of shareholders for the dividend payout is July 15, 2026. The amount wil paid to the respective stakeholders on July 31, 2026.
TCS reported employee attrition of 13.6% for the April-June quarter, higher than the Bloomberg consensus estimate of 11.5%, indicating greater-than-expected workforce churn during the period. Meanwhile, the company's total headcount stood at 593,798 at the end of the quarter, broadly in line with expectations and marginally above the Bloomberg estimate of 591,437 employees.
The IT giant reported constant currency revenue growth of 0.4% quarter-on-quarter for the April-June quarter, in line with market estimates. The company recorded a total contract value (TCV) of $9.5 billion during the quarter, including an $800 million deal with SKF. IT services attrition stood at 13.6%.
Among key verticals, the BFSI business grew 1.6% quarter-on-quarter, while the India business posted a strong 7.6% sequential growth. The consumer business declined 4%, life sciences and healthcare fell 1%, manufacturing slipped 0.5%, and North America business declined 0.4% on a quarter-on-quarter basis.
Commenting on the performance, CEO and MD K Krithivasan said the first quarter of fiscal 2027 reflected the company's continued growth momentum. He highlighted the strong order book of $9.5 billion, the signing of a marquee AI-led transformation deal with SKF, continued client additions across key revenue bands, and the scaling of TCS' AI business to an annualised revenue run rate of $2.6 billion.
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