TCS's Q1 profit jumps 6% to ₹12,760cr
10 Jul 2025

Tata Consultancy Services (TCS), India's largest IT services company, has reported a 6% year-on-year (YoY) rise in its net profit for the first quarter of FY26.

The company's net profit stood at ₹12,760 crore as compared to ₹12,040 crore a year ago.

This is higher than analysts' expectations of a muted growth rate of 1.9% for TCS's April-June net profit at ₹12,263 crore.

Revenue from operations marginally up at ₹63,437 crore
Financial performance

For the April-June quarter, TCS's revenue from operations also saw a marginal increase of 1.3% to ₹63,437 crore. However, this was lower than the Bloomberg's estimate of ₹64,636 crore.

The company has declared an interim dividend of ₹11 per share with a face value of Re. 1 each. The record date for the dividend payout is July 16, 2025.

TCS's operating margins expand; shares gain ahead of earnings
Market response

Ahead of the earnings announcement, TCS's share price ended with a moderate gain of 0.4% at ₹3,397.1 per share.

The company's operating margins also expanded sequentially with an EBIT margin for the fiscal first quarter expanding by 30 basis points to 24.5% from 24.2% in Q4 FY25.

Demand contraction due to global uncertainties: CEO Krithivasan
Leadership insights

Commenting on the results, K Krithivasan, CEO and Managing Director of TCS said that global macro-economic and geo-political uncertainties have caused a demand contraction.

However, he noted that all new services have grown well with robust deal closures during this quarter.

The company's Total Contract Value (TCV) for the quarter was $9.4 billion as against $12.2 billion in Q4 FY25.

We delivered steady margins while adapting to dynamic environment: CFO
Financial strategy

Samir Seksaria, CFO of TCS said that the company continued its investments in long-term sustainable growth this quarter.

He added that they remained agile and adapted to the dynamic environment while delivering steady margins.

The company added 6,071 employees during the April-June 2025 quarter, taking its total employee strength to 613,069 as of June 30, 2025.