TCS Q1 results: Profit climbs 5% YoY to ₹13,349 crore. Key highlights from June quarter earnings
TCS Q1 results: TCS reported an almost 5% YoY rise in its consolidated net profit for Q1FY27 to ₹13,349 crore. Revenue from operations for the quarter rose by 14% YoY to ₹72,275 crore.
TCS Q1 results: Indian IT heavyweight Tata Consultancy Services (TCS), on Thursday, 9 July, reported an almost 5% year-on-year (YoY) rise in its consolidated net profit for the April-June quarter of the current financial year (Q1FY27) to ₹13,349 crore.
In the same quarter last year, the company's profit was ₹12,760 crore.
However, on a sequential or quarter-on-quarter (QoQ) basis, TCS's profit declined by nearly 3%, as the IT company's profit was ₹13,718 crore in Q4FY26.
Revenue from operations for the quarter under review rose by 14% YoY and 2.2% QoQ to ₹72,275 crore. In Q1FY26, the company's revenue was ₹63,437 crore, while in Q1FY26, it was ₹70,698 crore.
“Q1FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds. We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualised revenue run rate," said K Krithivasan, Chief Executive Officer and Managing Director, TCS.
"As customers accelerate investments in AI, modernisation, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth,” Krithivasan said.
TCS Q1 earnings FY27: Key takeaways
1. The key numbers
Q1 revenue saw a modest 0.4% QoQ rise in constant currency (CC). Its annualised AI revenue increased by 13.6% QoQ to $2.6 billion in Q1.
EBIT declined 3% QoQ to ₹17,317crore, while EBIT margin came at 24% compared to 25.3% in Q4FY26, largely due to wage hikes.
“In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industry-leading profitability and return ratios,” said Samir Seksaria, Chief Financial Officer, TCS.
2. Performance of key verticals and markets
In CC terms, BFSI saw a decent 1.6% QoQ and 2.4% YoY growth, while the 'technology and services' segment grew by 1.7% QoQ and 3.5% YoY.
The communication and media vertical also witnessed a growth of 0.3% QoQ and 1.4% YoY in CC, but revenue from the consumer business domain shrank by 4% QoQ and 1.2% YoY.
Life sciences and healthcare declined 1% QoQ, but rose 3.5% YoY in CC, while manufacturing de-grew 0.5% QoQ but increased 2.9% YoY.
Among the key regions, revenue from the Indian market saw a decent 7.6% QoQ and 22.9% YoY rise in CC terms during the quarter. The North American market shrank by 0.4% QoQ, but rose by 2% YoY.
Revenue from the MEA (Middle East and Africa) declined 1.8% QoQ but still rose 7.6% YoY in Q1 in CC terms.
In Europe, the UK saw a growth of 0.3% QoQ, but a 0.6% decline on a YoY basis. On the other hand, continental Europe de-grew 0.2% QoQ, but grew 4.3% YoY in CC.
3. Headcount and attrition
TCS's workforce by the end of Q1FY27 stood at 5,93,798 compared to 5,84,519 by the end of Q4FY26. LTM (last-twelve-month) attrition in IT services was 13.6%.
“This quarter, we completed annual salary increments for all associates globally and aligned salary structures with the new India Labour Code requirements. We continue to invest in AI infrastructure, next-generation skill development platforms, to enable our people to be future-ready, while fostering a workplace where every associate feels safe, valued, trusted and empowered to grow,” said Sudeep Kunnumal, Chief HR Officer, TCS.
4. Deal TCV and client addition
Total contract value (TCV) of deals in Q1FY27 stood at $9.5 billion. The company signed net-new AI-led business transformation deals during the quarter, including a $800 million mega deal with SKF, a multi-million-dollar strategic partnership agreement with ServiceNow, and a multi-million-dollar deal with a Europe-based Fortune Global 50 company.
5. Dividend
TCS's board of directors declared an interim dividend of ₹12 per share of ₹1 each.
The interim dividend will be paid on Friday, 31 July 2026. The record date for the dividend payout is Wednesday, 15 July 2026.