TCS Q1 Results: Net Profit Rises Nearly 6% YoY, 4.4% QoQ; Rs 11 Dividend Declared

Last Updated:July 10, 2025, 17:08 IST

Tata Consultancy Services reports a 5.98% rise YoY in its net profit to Rs 12,760 crore for Q1 FY26, beating market expectations.

TCS Q1 Results 2025: Tata Consultancy Services (TCS), India’s largest IT services company, on Thursday reported a 5.98 per cent rise year-on-year (YoY) in its net profit to Rs 12,760 crore for the first quarter ended June 30, 2025 (Q1 FY26). On a quarter-on-quarter (QoQ) basis, the net profit grew 4.38%.

It had reported a net profit of Rs 12,040 crore a year ago and Rs 12,224 crore in the previous quarter.

The Q1 FY26 earnings are better than expectations. A Bloomberg consensus poll of analysts had pegged TCS’ Q1 FY26 net profit growth at a muted 1.9% to Rs 12,263 crore.

In dollar terms, the company’s net profit rose 3.5% YoY to $1.49 billion.

TCS will conduct a press conference at 5:30 pm and an analyst call at 7:00 pm, which will be keenly watched by investors.

TCS Q1 Results: Revenue Growth

The company’s revenue from operations during April-June 2025 stood at Rs 63,437 crore, which is 1.13 per cent higher as compared with the Rs 62,613 crore reported last year. On a sequential basis, the revenue fell 1.61%.

It was also down by 3% on a constant currency basis.

The revenue is lower than the Bloomberg consensus estimate of Rs 64,636 crore.

TCS Q1 Results: Dividend Declared

The company declared an interim dividend of Rs 11 for the financial year 2025-26. It had declared a final dividend of Rs 30 for the previous year 2024-25.

“We would like to inform you that at the board meeting held today, the directors have declared an interim dividend of Rs 11 per Equity Share of Rs 1 each of the Company,” TCS said in a regulatory filing on July 10, 2025.

TCS has set July 16, 2025, as the record date for the interim dividend. It said this dividend will be paid to eligible shareholders on August 4, 2025.

TCS Q1 Results: Deal Pipeline

The IT major on Thursday also reported new deal signings of $9.4 billion during the quarter.

TCS Q1 Results: Hiring, Attrition

TCS said it added 6,071 employees during the April-June 2025 quarter. With this, the total number of TCS employees stood at 6,13,069 as of June 30, 2025.

Its IT services attrition rate (last twelve month basis), however, inched up to 13.8 per cent in Q1 FY26, compared with 13.3 per cent in the previous quarter. The attrition had stood at 13 per cent in the December 2024 quarter.

The company reported an operating margin of 24.5 per cent and a net margin of 20.1 per cent, higher as compared with 24.2 per cent and 19 per cent reported in the previous quarter, respectively.

TCS Q1 Results: Management Commentary

K Krithivasan, chief executive officer and managing director of TCS, said, “The continued global macroeconomic and geopolitical uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimisation, vendor consolidation and AI-led business transformation.”

Aarthi Subramanian, executive director (president) and chief operating officer of TCS, said, “Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications. Launching TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defense Suite, to accelerate India’s AI led transformation was a particular highlight of this quarter.”

Samir Seksaria, chief financial officer of TCS, said, “We continued our investments in long term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry leading profitability alongside robust cash conversion, positions us well to make strategic investments for the future.”

Ahead of the results announcement, shares of TCS on Thursday closed at Rs 3,382.3 apiece on the BSE, almost flat as compared with Rs 3,384.35 apiece in the previous session.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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