TCS Q1 earnings: Net profit rises 5% to ₹13,349 crore, revenue jumps 14%; company announces dividend of ₹12 per share

Tata Consultancy Services (TCS), the country’s largest information technology (IT) services company, on Thursday, July 9, reported a net profit of ₹13,349 crore in the first quarter of the current financial year, marking an increase of nearly 5% from ₹12,760 crore in the same period last year.

However, on a sequential basis, its net profit declined 2.7% from ₹13,718 crore.

Its revenue from operations advanced 14% to ₹72,275 crore at the end of the first quarter from ₹63,437 crore in the year-ago period.

The company earned $2.6 billion in revenue from providing artificial intelligence (AI) services, marking a sequential increase of 14%.

Its operating margin came in at 24%, and net margin was 19.2% at the end of the first quarter.

During the quarter, TCS signed an $800 million AI-led deal with SKF. It also signed a multimillion-dollar agreement with ServiceNow and a multimillion-dollar deal with a Europe-based Fortune Global 50 company.

“Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macroeconomic headwinds," said K Krithivasan, Chief Executive Officer and Managing Director.

"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 annualized revenue run rate. As customers accelerate investments in AI, modernization, 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 added.

BFSI segment contributed 32.1% to TCS' revenue, followed by consumer business at 15%, life science and healthcare business at 10.3%, manufacturing at 8.7%, and technology and services at 8.5%.

On a geographical basis, the United States remained its biggest market with a 48.3% share of business, followed by Europe at 17.2%, Asia Pacific at 8.4% and India at 6.2%.

Q1 TCS deal wins

The Mumbai-based company won an $800 million global AI-led business transformation deal with SKF, redesigning enterprise operations around an intelligent digital core.

The programme establishes AI as the enterprise nervous system, harmonizing fragmented processes, data, and platforms into a self-learning operational backbone that drives predictive decision-making, autonomous optimization, and enterprise-wide agility at scale.

TCS won a deal with a North American utility major for its AI-driven utility transformation into a future-ready, innovation-led operating model. By embracing AI at scale, the utility major is pioneering the development of an enterprise-wide digital ecosystem spanning grid operations, customer experience, asset management, and workforce enablement, while building a scalable foundation with strong AI governance and lifecycle management, the country’s largest IT company said.

TCS and ServiceNow have further elevated their strategic partnership to accelerate large-scale AI adoption for enterprises. In a multi-million-dollar partnership agreement, TCS & ServiceNow will leverage joint go-to-market initiatives and opportunities to drive growth and customer value.

As TCS and ABB celebrate 20 years of strategic partnership, the companies have further strengthened their collaboration through a new multi-million-dollar Future Network Model engagement.

Over the next five years, the AI-enabled programme will modernise ABB’s global network operations through intelligent automation, enhanced cyber resilience, and next-generation managed services.

The company’s board declared an interim dividend of ₹12 per share.

TCS shares ended 0.39% lower at ₹2,049.50 apiece on the NSE ahead of its earnings announcement.