TCS Q1 net profit slips nearly 3 pc sequentially; declares Rs 12 interim dividend
Mumbai, July 9
Tata Consultancy Services, India's largest software services exporter, on Thursday reported a consolidated net profit of Rs 13,349 crore for the first quarter of FY27, down around 3 per cent from Rs 13,718 crore recorded in the January-March quarter of the previous financial year.
On a year-on-year basis, however, net profit rose 5 per cent from Rs 12,760 crore reported in the corresponding quarter last year (Q1 FY26).
Revenue from operations increased 14 per cent year-on-year to Rs 72,275 crore during the April-June quarter, compared with Rs 63,437 crore a year earlier.
Sequentially, revenue rose 2 per cent from Rs 70,698 crore in the previous quarter.
The company's board declared an interim dividend of Rs 12 per equity share. TCS has fixed July 15, 2026 as the record date to determine eligible shareholders, while the dividend will be paid on July 31, 2026.
Commenting on the results, Chief Executive Officer and Managing Director K. Krithivasan said the company maintained its growth momentum despite a challenging global business environment.
"Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds. We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualized revenue run rate," he said.
For the quarter, TCS reported an operating margin of 24.0 per cent and a net margin of 19.2 per cent. Net cash generated from operations stood at Rs 12,412 crore, equivalent to 93 per cent of net income.
The company's total workforce stood at 593,798 employees at the end of the June quarter, while the last twelve months (LTM) attrition rate in its IT Services business was 13.6 per cent.
— IANS
Reader Comments
The 3% sequential dip in net profit is a concern, but year-on-year growth of 5% shows resilience. Good to see AI business scaling to $2.6 billion. Hope the global situation improves for the sector.
Great to see TCS maintaining its position with a strong order book and AI focus! But yaar, with inflation and market volatility, I hope they focus more on employee welfare too. Attrition rate of 13.6% is still a bit high. 😅
TCS's consistent performance is impressive, even with sequential profit dip. The dividend declaration shows confidence. But I'd like more clarity on how the macro headwinds specifically impact their European and US deals.
As a TCS shareholder, the dividend is welcome, but 3% profit drop is worrisome. The AI deal with SKF is a good sign though. Let's hope the next quarter brings better margins, especially with the festive season coming! 💼
Revenue up 14% YoY but profit down sequentially. This suggests rising costs or maybe investment in AI? The $9.5B order book is impressive. TCS is still the bellwether of Indian IT! Keep it up! 🌟
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