TCS Q1 Results: Profit Rises 5% YoY to ₹13,349 Crore, Revenue Up 14%; ₹12 Interim Dividend, $9.5 Billion Deal Wins

Tata Consultancy Services (TCS) reported a steady performance for the first quarter of FY27, with consolidated net profit rising 5% year-on-year to ₹13,349 crore, while revenue increased 14% to ₹72,275 crore. The IT giant also declared an interim dividend of ₹12 per share, maintained a strong $9.5 billion order book, and continued expanding its AI business, with annualised AI revenue reaching $2.6 billion.

TCS Reports Higher Profit and Revenue in Q1 FY27

India's largest IT services company, Tata Consultancy Services (TCS) announced its financial results for the quarter ended June 2026 after market hours on Thursday.

The company posted a consolidated net profit of ₹13,349 crore, up 5% from ₹12,760 crore reported in the corresponding quarter last year.

Revenue from operations climbed 14% year-on-year to ₹72,275 crore, reflecting continued business momentum despite global macroeconomic uncertainties.

TCS Q1 FY27 Financial Highlights

Particulars	Q1 FY27	Q1 FY26	YoY Change
Revenue	₹72,275 Cr	₹63,437 Cr	+14%
Net Profit	₹13,349 Cr	₹12,760 Cr	+5%
Operating Margin	24.0%	-	-
Net Margin	19.2%	-	-
Net Cash from Operations	₹12,412 Cr	-	93% of Net Income

TCS Announces ₹12 Interim Dividend

The Board of Directors declared an interim dividend of ₹12 per equity share for FY27.

Dividend Details	Information
Interim Dividend	₹12 per equity share
Record Date	July 15, 2026
Financial Year	FY27

The dividend announcement reinforces TCS' long-standing track record of rewarding shareholders through consistent payouts.

Strong Deal Wins Keep Order Book Healthy

TCS reported a total contract value (TCV) of $9.5 billion during the quarter, reflecting sustained client demand across digital transformation and AI-led projects.

Major deal wins included:

• $800 million AI-led transformation deal with SKF
• Multi-million-dollar strategic partnership with ServiceNow
• Large transformation engagement with a Europe-based Fortune Global 50 company

The healthy deal pipeline provides strong revenue visibility for upcoming quarters.

AI Business Continues to Scale Rapidly

Artificial Intelligence remained one of the biggest growth drivers for TCS during the quarter.

The company reported an annualised AI revenue run rate of $2.6 billion, representing a 13.6% quarter-on-quarter increase.

TCS also announced strategic partnerships with leading AI companies:

• Anthropic, where TCS will establish a dedicated business unit and provide enterprise-wide Claude AI access to over 50,000 associates.
• Mistral AI, making TCS the first Global Systems Integrator partner for the Mistral Forge platform.

The company secured multiple AI-related projects covering:

• IT Operations
• Software Engineering
• Enterprise Modernisation
• SaaS Implementation
• Autonomous Business Services

CEO Highlights Growing Enterprise AI Demand

TCS CEO K Krithivasan said customer investments continue to rise across AI, cybersecurity, cloud migration and digital transformation despite ongoing geopolitical and macroeconomic challenges.

According to the company, enterprises remain focused on:

• AI adoption
• Cloud modernisation
• Cybersecurity
• Sovereign cloud infrastructure
• Platform simplification

Employee Strength and Attrition

TCS ended the June quarter with a workforce of 5,93,798 employees.

The company's IT services attrition rate stood at 13.6% over the last twelve months.

During the quarter, TCS also:

• Completed annual salary hikes globally
• Updated compensation structures in line with India's new Labour Code
• Continued investments in employee upskilling and AI capabilities

Segment-Wise Performance

Business performance remained mixed across industry verticals.

Segment	Performance
BFSI	Strong growth
Technology & Services	Positive growth
Regional Markets	Healthy growth
Consumer Business	Declined sequentially
Manufacturing	Slight decline
Life Sciences & Healthcare	Marginal decline
Energy, Resources & Utilities	Slight decline

The BFSI segment remained the strongest contributor, while consumer-facing businesses witnessed softer demand.

Geographic Performance

India continued to outperform global markets during the quarter.

Geography	Performance
India	Strongest growth
North America	Slight sequential decline
United Kingdom	Marginal growth
Continental Europe	Slight decline

Margin Pressure Persists Despite Growth

Although revenue improved, operating margins remained under pressure following annual wage revisions implemented during the quarter.

Chief Financial Officer Samir Seksaria stated that TCS continues investing in AI capabilities, strategic partnerships and long-term competitiveness while maintaining disciplined profitability.

What Investors Should Watch

Despite delivering steady earnings, investors will continue monitoring:

• AI-led revenue growth
• Large deal wins
• Margin recovery
• Global discretionary IT spending
• North America demand
• Enterprise cloud transformation projects

TCS' expanding AI ecosystem, robust order pipeline and consistent dividend policy continue to strengthen its long-term growth outlook.

What was TCS' Q1 FY27 net profit?

TCS reported a consolidated net profit of ₹13,349 crore, up 5% year-on-year.

How much dividend did TCS declare?

The company announced an interim dividend of ₹12 per equity share for FY27.

How much revenue did TCS report?

Revenue from operations increased 14% YoY to ₹72,275 crore.

What is TCS' AI revenue run rate?

TCS reported an annualised AI revenue run rate of $2.6 billion, growing 13.6% sequentially.

What was TCS' order book during the quarter?

The company reported a Total Contract Value (TCV) of $9.5 billion in Q1 FY27.