Tata Consultancy Services (TCS), the country’s largest IT services company, has released the results for the first quarter (April-June) of the financial year 2026-27. The consolidated net profit of the company increased by 5% on annual basis to Rs 13,349 crore. In the same quarter last year, the company’s profit was Rs 12,760 crore.
The company’s board has approved giving interim dividend of Rs 12 per share to the shareholders. The record date for this has been fixed on July 15.
14% increase in income
TCS’s revenue from operations increased by 14% to Rs 72,275 crore in the April-June quarter. Compared to the previous quarter, the company’s income increased by 2.2% in rupee terms and 0.4% in constant currency terms.
During this period, the company’s operating margin was 24% and net margin was 19.2%. The company said that these figures do not include any exceptional items. The company generated net cash from operations of Rs 12,412 crore, which is 93% of its total profit.
Strong growth in AI business
TCS’s order book during the quarter stood at $9.5 billion. This includes an $800 million ($800 million) AI-based transformation project with SKF, a strategic partnership with ServiceNow and a multi-million dollar deal with Europe’s Fortune Global 50 company.
The company said that the annual run rate of its AI business has reached $2.6 billion, which is 13.6% more than the previous quarter. The company has received many big orders related to AI, software engineering, SaaS, IT operations and business services.
Number of employees and salary increase
By the end of June 2026, TCS had a total of 5,93,798 employees. The company’s attrition rate in the last 12 months was 13.6%. The company implemented an annual salary hike for all employees worldwide in this quarter. Besides, the salary structure was also changed in accordance with the new Labor Code of India.
Which sectors and markets performed best?
Talking about business segment, BFSI (Banking, Financial Services and Insurance) business registered a growth of 2.4% on annual basis. At the same time, improvement was also seen in the technology and services segment.
India was TCS’s fastest growing market on a geographical basis, with business growing 22.9% year-on-year. At the same time, the company’s biggest market North America grew by 2% on an annual basis.
What did the CEO and CFO say?
TCS CEO K. Kritivasan said that despite global economic and geopolitical challenges, the company has performed strongly. Customers’ investment in AI, cyber security, cloud and modernization is continuously increasing.
CFO Sameer Seksaria said that the company is focusing on strengthening AI capabilities, increasing strategic partnerships and maintaining long-term competitiveness. Also, work will continue towards maintaining profitability and returns.
Leave a Reply