TCS Q1 FY27 Results: Revenue Hits ₹72,275 Crore, Margin Declines

Tata Consultancy Services announced its Q1 results, which showed steady revenue growth. But profitability has been under pressure due to lower operating margins.

After the announcement, TCS share price surged in early trade on 10 July.

Q1 FY27 Key Figures

The IT services major reported revenue of ₹72,275 crore, up 13.9% year-on-year (YoY) and 2.2% sequentially. On a constant currency basis, revenue grew 3.2% YoY and 0.4% QoQ.

Net profit came in at ₹13,849 crore, an increase of about 1% from ₹13,718 crore reported in the previous quarter and 8.5% higher than ₹12,760 crore a year earlier. Earnings per share improved to ₹38.28 from ₹37.92 in the March quarter.

Despite higher revenue, profitability reduced. Operating profit declined to ₹17,317 crore from ₹17,870 crore in the previous quarter, while the operating margin narrowed to 24% from 25.3%. The net margin also eased to 19.2%, compared with 19.4% in Q4 FY26.

TCS reported net cash from operations of ₹12,412 crore, equivalent to 93% of net profit. The company generated free cash flow of ₹11,662 crore. Total cash and investments for the quarter stood at ₹50,232 crore.

How Did The Business Perform?

TCS' order book stood at US$9.5 billion. The company also added more high-value clients. The number of customers with more than US$10 million in annual revenue increased to 504 from 499 in the previous quarter.

Its India business recorded the fastest growth, with revenue increasing 23.3% YoY. The BFSI segment, which is TCS' largest business vertical, grew 14.1% in rupee terms.

Overall, TCS revenue continued to expand at a healthy pace even as margins moderated during the quarter.

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