Key Points

TCS kicked off earnings season with a 6% profit rise to Rs 12,760 crore. The IT giant declared an Rs 11 interim dividend while navigating global economic challenges. Margins improved to 24.5% as the company added 6,071 employees this quarter. TCS now has 114,000 AI-skilled professionals driving digital transformation for clients.

Key Points: TCS Q1 Profit Rises 6% to Rs 12,760 Crore Announces Rs 11 Dividend

  • TCS revenue grows 1.3% YoY to Rs 63,437 crore
  • Operating margins expand to 24.5% in Q1
  • Net headcount addition of 6,071 employees
  • 114,000 TCS employees now possess AI skills
2 min read

TCS logs 6 pc net profit growth at 12,760 crore in Q1, to give Rs 11 interim dividend

TCS reports 6% YoY profit growth to Rs 12,760 crore in Q1 FY26, declares Rs 11 interim dividend amid global economic uncertainties.

"Across industries, clients are increasingly shifting focus to ROI-led scaling of AI – Aarthi Subramanian, TCS COO"

Mumbai, July 10

Kicking off the Q1 FY26 earnings season, IT bellwether Tata Consultancy Services (TCS) on Thursday said it registered around 6 per cent growth in net profit (year-on-year) at Rs 12,760 crore, which surpassed analyst expectations.

The IT major saw revenue from operations growing 1.3 per cent (on-year) to Rs 63,437 crore for the April-June quarter.

TCS declared an interim dividend of Rs 11 per share of Re 1 face value each.

"The interim dividend shall be paid on Monday, August 4, 2025, to the equity shareholders of the company," it said in a stock exchange filing.

“The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter,” said K Krithivasan, Chief Executive Officer and Managing Director.

He added that the company remains closely connected to its customers to help them navigate the challenges impacting their business, through cost optimisation, vendor consolidation and AI-led business transformation.

Ahead of the earnings announcement, TCS share closed with moderate gain 0.4 per cent at Rs 3,397.1 apiece.

Operating margins expanded sequentially. The EBIT margin for the fiscal first quarter expanded 30 bps to 24.5 percent from 24.2 per cent in Q4, as per the TCS filing.

“Across industries, clients are increasingly shifting their focus from use case-based approach to ROI led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications,” said Aarthi Subramanian, Executive Director-President and Chief Operating Officer.

The company reported net Headcount addition of 6,071 in the quarter, with Last Twelve-Month (LTM) attrition at 13.8 per cent.

Milind Lakkad, Chief HR Officer, said that talent development is core to TCS.

“In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers. It is gratifying to note that TCS now has 114,000 people with higher order AI skills,” he added.

- IANS

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Reader Comments

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Priya S
While the numbers look good, I'm concerned about only 1.3% revenue growth. TCS needs to focus more on digital transformation projects to stay ahead of competitors. The AI investments are promising though!
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Arjun K
15 million hours of training! This is why TCS remains India's IT crown jewel. Their focus on upskilling employees in AI is visionary. More companies should follow this model.
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Sarah B
As someone working in the tech sector, I'm impressed by the 114,000 AI-skilled professionals. But I wonder if the 13.8% attrition rate indicates challenges in retaining this talent pool?
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Karthik V
The dividend announcement is good news for retail investors. But at Rs 3,397 per share, TCS stock remains out of reach for many small investors. Wish they would consider stock splits!
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Nisha Z
TCS proving once again why it's the pride of Indian IT sector 🇮🇳 The focus on ROI-led AI scaling shows they understand market needs. Hope other Indian companies learn from their strategic vision!

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