TCS Q1 net profit slips 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 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
Good to see revenue up 14% YoY and that SKF AI deal. But 3% profit dip in a quarter is a reminder that global headwinds are real. Still, TCS remains India's IT crown jewel. 🌟
Dividend is fine, but I'm more interested in the $9.5 billion order book and AI revenue hitting $2.6 billion annual run rate. That shows TCS is adapting. However, 13.6% attrition is still high—need to retain talent better.
Stable performance in a tough quarter. The AI adoption push is smart—India's IT firms need to lead in that space. Curious about how many of the 593k employees are working on AI projects. 🤔
I own TCS shares and the dividend is welcome, but would've preferred a buyback. The operating margin of 24% is solid though, better than many peers. Let's see if they can maintain it through Q2. 💪
Mixed bag: sequential profit down but YoY up. The management's commentary about "geopolitical headwinds" sounds like a standard disclaimer. I'd like more transparency on what's causing the sequential drag—is it wage hikes or lower billing?
S Siddharth J