TCS Q1 Results 2027: Profit Rises 5% To ₹13,349 Crore, Revenue Up 14%; Announces ₹12 Interim Dividend

Tata Consultancy Services (TCS), India's largest information technology (IT) services company, on Thursday reported a 5% year-on-year increase in consolidated net profit to ₹13,349 crore for the quarter ended June 30, 2026, compared with ₹12,760 crore a year earlier. On a sequential basis, however, net profit declined 2.7% from ₹13,718 crore.

Revenue from operations rose 14% year-on-year to ₹72,275 crore, up from ₹63,437 crore in the corresponding quarter last year. Sequentially, revenue increased 2.2% in rupee terms and 0.4% in constant currency.

The company reported an operating margin of 24%, while net margin stood at 19.2% during the quarter. TCS also said its annualised artificial intelligence (AI) business reached $2.6 billion, marking a sequential increase of around 14%.

The board approved an interim dividend of ₹12 per equity share. The record date has been fixed as July 15, 2026, while the dividend will be paid on or before July 31, 2026.

During the quarter, TCS reported a total contract value (TCV) of $9.5 billion. The company signed an $800-million AI-led business transformation deal with SKF, a multi-million-dollar strategic partnership with ServiceNow, and another multi-million-dollar engagement with a Europe-based Fortune Global 50 company. It also expanded its long-standing partnership with ABB through a new AI-enabled Future Network Model programme.

Commenting on the performance, K Krithivasan, Chief Executive Officer and Managing Director, said, "Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds."

He added that TCS delivered a $9.5-billion order book, including the AI-led SKF deal, while continuing to expand its AI business to a $2.6-billion annualised revenue run rate. According to Krithivasan, increasing investments by clients in AI, cloud modernisation, cybersecurity and platform simplification, along with improving deal conversion and ecosystem partnerships, position the company for sustained growth.

Among industry verticals, Banking, Financial Services and Insurance (BFSI) remained the largest contributor, accounting for 32.1% of revenue, followed by Consumer Business (15%), Life Sciences & Healthcare (10.3%), Manufacturing (8.7%) and Technology & Services (8.5%).

Geographically, North America continued to be TCS' largest market with 48.3% of revenue, followed by Europe (17.2%), Asia Pacific (8.4%) and India (6.2%).

TCS shares closed 0.07% higher at ₹2,059 on the NSE ahead of the earnings announcement.

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