Mumbai– Kicking off the Q1 FY26 earnings season, Tata Consultancy Services (TCS) on Thursday reported a 6 percent year-over-year increase in net profit, reaching ₹12,760 crore for the April–June quarter—surpassing market expectations.
Revenue from operations grew 1.3 percent year-over-year to ₹63,437 crore during the quarter.
The IT major also announced an interim dividend of ₹11 per equity share of ₹1 face value. The dividend will be paid on Monday, August 4, 2025, to eligible shareholders, the company said in a stock exchange filing.
“The continued global macroeconomic and geopolitical uncertainties led to demand contraction. On the positive side, all our new service lines performed well, and we saw strong deal closures during the quarter,” said K. Krithivasan, Chief Executive Officer and Managing Director of TCS.
Krithivasan added that the company remains deeply engaged with clients to help them navigate business challenges through cost optimization, vendor consolidation, and AI-driven transformation.
Ahead of the earnings announcement, TCS shares closed with a moderate gain of 0.4 percent at ₹3,397.10 apiece.
TCS also reported improved profitability. The company’s EBIT (earnings before interest and taxes) margin for Q1 expanded by 30 basis points to 24.5 percent, up from 24.2 percent in the previous quarter.
“Across industries, clients are increasingly moving from use case-based experimentation to ROI-driven scaling of AI. We’re making strategic investments across the AI ecosystem—covering infrastructure, data platforms, AI agents, and business applications,” said Aarthi Subramanian, Executive Director-President and Chief Operating Officer.
TCS also reported a net headcount addition of 6,071 employees during the quarter, with a last-twelve-month (LTM) attrition rate of 13.8 percent.
“Talent development remains at the heart of TCS,” said Milind Lakkad, Chief Human Resources Officer. “In this quarter alone, our associates invested 15 million hours in building expertise in emerging technologies. We’re proud to now have 114,000 team members with advanced AI skills.” (Source: IANS)
