Tata Consultancy Services (TCS) reported a 9% YoY rise in net profit for Q1 FY26, beating street estimates and maintaining its strong performance momentum. The IT giant also declared a ₹10 interim dividend, signaling confidence amid global headwinds.
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TCS Q1 FY26 Results: Steady Growth Amid Global Uncertainty
India’s largest IT services firm, Tata Consultancy Services (TCS), kicked off the Q1 earnings season with robust numbers. The company reported a 9% year-on-year (YoY) growth in consolidated net profit, reaching ₹12,150 crore for the quarter ending June 30, 2025, compared to ₹11,120 crore in the same period last year.
Revenue for the quarter stood at ₹63,530 crore, marking a 7% increase YoY, driven by strong performance in key verticals like BFSI, retail, and healthcare.
Key Highlights from TCS Q1 2025 Earnings:
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Net Profit: ₹12,150 crore (up 9% YoY)
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Revenue: ₹63,530 crore (up 7% YoY)
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Operating Margin: 24.7%
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Interim Dividend: ₹10 per equity share
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Employee Headcount: 5.87 lakh
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Attrition Rate: Further reduced to 12.8% from 13.5%
Management Commentary
CEO and MD K Krithivasan stated:
“We’ve had a strong start to FY26, with resilient demand in key markets. Our continued investments in AI, cloud, and innovation are helping clients transform faster.”
CFO Samir Seksaria emphasized margin discipline and hinted at further cost optimization and tech investments to ensure sustainable growth across quarters.
Strong Deal Wins & Client Expansion
TCS reported a Total Contract Value (TCV) of $9.5 billion, reflecting consistent demand for digital transformation, AI-driven automation, and cloud migration.
Significant deal wins were seen in the North American banking sector, a long-standing client base, and European manufacturing clients, despite ongoing macroeconomic concerns in Europe.
Market Reaction & Share Price Movement
Following the results, TCS stock surged by 2.3% in early trading hours, signaling investor optimism. Analysts praised the company’s stable margins and healthy deal pipeline, calling the Q1 report “solid and resilient.”
With improved operating efficiency and easing attrition, analysts expect TCS to outperform other Tier-1 IT peers this fiscal year.
