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TCS's Q1 profit jumps 6% to ₹12,760cr
The company has declared an interim dividend of ₹11 per share

TCS's Q1 profit jumps 6% to ₹12,760cr

Jul 10, 2025
05:07 pm

What's the story

Tata Consultancy Services (TCS), India's largest IT services company, has reported a 6% year-on-year (YoY) rise in its net profit for the first quarter of FY26. The company's net profit stood at ₹12,760 crore as compared to ₹12,040 crore a year ago. This is higher than analysts' expectations of a muted growth rate of 1.9% for TCS's April-June net profit at ₹12,263 crore.

Financial performance

Revenue from operations marginally up at ₹63,437 crore

For the April-June quarter, TCS's revenue from operations also saw a marginal increase of 1.3% to ₹63,437 crore. However, this was lower than the Bloomberg's estimate of ₹64,636 crore. The company has declared an interim dividend of ₹11 per share with a face value of Re. 1 each. The record date for the dividend payout is July 16, 2025.

Market response

TCS's operating margins expand; shares gain ahead of earnings

Ahead of the earnings announcement, TCS's share price ended with a moderate gain of 0.4% at ₹3,397.1 per share. The company's operating margins also expanded sequentially with an EBIT margin for the fiscal first quarter expanding by 30 basis points to 24.5% from 24.2% in Q4 FY25.

Leadership insights

Demand contraction due to global uncertainties: CEO Krithivasan

Commenting on the results, K Krithivasan, CEO and Managing Director of TCS said that global macro-economic and geo-political uncertainties have caused a demand contraction. However, he noted that all new services have grown well with robust deal closures during this quarter. The company's Total Contract Value (TCV) for the quarter was $9.4 billion as against $12.2 billion in Q4 FY25.

Financial strategy

We delivered steady margins while adapting to dynamic environment: CFO

Samir Seksaria, CFO of TCS said that the company continued its investments in long-term sustainable growth this quarter. He added that they remained agile and adapted to the dynamic environment while delivering steady margins. The company added 6,071 employees during the April-June 2025 quarter, taking its total employee strength to 613,069 as of June 30, 2025.