TCS Q1 Results: Profit rises 5% YoY to Rs 13,349 crore; co declares Rs 12/share dividend

India's largest IT services company, Tata Consultancy Services (TCS), on Thursday reported 5% year-on-year (YoY) growth in its consolidated net profit at Rs 13,349 crore for the first quarter. The same stood at Rs 12,760 crore in the year-ago period.

The company's board has approved an interim dividend of Rs 12 per share for the financial year FY27 and fixed July 15 as the record date.

Revenue from operations in the period under review increased 14% YoY to Rs 72,275 crore.


On a sequential basis, revenue grew 2.2% in rupee terms and 0.4% in constant currency.

Operating margin stood at 24%, while net margin came in at 19.2%. The company said the numbers exclude exceptional items. Net cash from operations stood at Rs 12,412 crore, or 93% of net income.

The company’s order book for the quarter stood at $9.5 billion. This included an $800 million AI-led transformation deal with SKF, a multi-million-dollar strategic partnership with ServiceNow and another multi-million-dollar deal with a Europe-based Fortune Global 50 company.

TCS said its annualised AI revenue run rate reached $2.6 billion in Q1FY27, up 13.6% quarter-on-quarter. The company said it won several AI-led deals across IT operations, software engineering, modernisation, SaaS implementation and autonomous global business services.

CEO K Krithivasan said the quarter reflected continued growth momentum despite geopolitical and macroeconomic headwinds. He said customers were increasing investments in AI, modernisation, cybersecurity, sovereign cloud and platform simplification.

TCS also signed strategic partnerships with Anthropic and Mistral during the quarter. Under the Anthropic partnership, TCS will set up a dedicated business unit and give 50,000 associates access to Claude through enterprise-wide licensing. With Mistral, TCS said it became the first global systems integrator partner for Mistral Forge.

The company’s employee strength stood at 5,93,798 at the end of June. IT services attrition for the last 12 months was 13.6%. TCS said it completed annual salary increases for all associates globally during the quarter and aligned salary structures with India’s new Labour Code requirements.

Segment performance

Among business segments, BFSI grew 1.6% quarter-on-quarter in constant currency and 2.4% year-on-year. Technology and services grew 1.7% sequentially, while regional markets and others grew 4%. Consumer business declined 4% sequentially, while life sciences and healthcare fell 1%. Manufacturing declined 0.5%, and energy, resources and utilities fell 0.7%.

By geography, India was the strongest market, growing 7.6% quarter-on-quarter and 22.9% year-on-year in constant currency. North America, TCS’s largest market, declined 0.4% sequentially but grew 2% year-on-year. The UK grew 0.3% sequentially, while Continental Europe declined 0.2%.

The results come at a time when Indian IT companies are facing investor concerns over weak discretionary spending, pressure on pricing, wage costs and the impact of AI on traditional outsourcing revenue. TCS’s margin declined sequentially as wage hikes took effect, though the company said it remains focused on disciplined execution and long-term competitiveness.

CFO Samir Seksaria said TCS rolled out annual wage hikes, strengthened its partnership ecosystem and made targeted investments to improve long-term competitiveness. He said the company remains focused on building, acquiring or partnering for AI-led capabilities while maintaining profitability and return ratios.