Mumbai – Tata Consultancy Services (TCS), India’s largest IT services firm, kicked off the Q1 FY26 earnings season with a 6% year-on-year increase in net profit, reaching ₹12,760 crore—exceeding analyst expectations.
Revenue from operations for the April–June quarter rose 1.3% YoY to ₹63,437 crore.
The company also declared an interim dividend of ₹11 per equity share (face value ₹1), stating in a stock exchange filing: “The interim dividend shall be paid on Monday, August 4, 2025, to the equity shareholders of the company.”
TCS CEO and MD K. Krithivasan attributed the overall performance to strong deal closures amid continued global macroeconomic and geopolitical challenges, which led to subdued demand. “The new services performed well this quarter. We’re working closely with clients to help them manage current business pressures through cost optimization, vendor consolidation, and AI-driven transformation,” he said.
Ahead of the earnings release, TCS shares closed with a modest gain of 0.4% at ₹3,397.1 on the BSE.
The company’s operating margins showed improvement, with EBIT margin rising 30 basis points sequentially—from 24.2% in Q4 to 24.5% in Q1.
Aarthi Subramanian, Executive Director-President and COO, noted a shift in client behavior: “Clients across industries are moving from a use-case approach to ROI-driven scaling of AI. We’re investing across the AI value chain—infra, data platforms, AI agents, and business apps.”
TCS added 6,071 employees in the quarter, with attrition (LTM) at 13.8%.
Chief HR Officer Milind Lakkad emphasized the company’s focus on talent development. “This quarter, our employees clocked 15 million learning hours in emerging technologies. It’s especially rewarding that 114,000 of our professionals now possess advanced AI skills,” he said.
With inputs from IANS