TCS Results: Net Profit at ₹13,349 Crore, Revenue Grows to ₹72,275 Crore; Declares ₹12 Interim Dividend

9 Jul 2026 , 04:21 PM

Tata Consultancy Services (TCS), India’s largest IT services company, announced its financial results for the first quarter of FY27, reporting steady revenue growth despite a sequential decline in profitability. The company also highlighted strong deal wins, continued momentum in artificial intelligence (AI)-led transformation projects, and announced an interim dividend for shareholders.

TCS Q1 FY27 Financial Performance

For the quarter ended June 30, 2026, TCS reported a consolidated net profit of ₹13,349 crore, marking a 2.7% sequential decline from the previous quarter.

The company’s consolidated revenue increased 2.2% quarter-on-quarter to ₹72,275 crore, reflecting stable business momentum across key markets.

On a constant currency basis, TCS registered 0.4% revenue growth, indicating resilience despite a challenging global demand environment.

EBIT and Margin Performance

TCS reported Earnings Before Interest and Tax (EBIT) of ₹17,317 crore, representing a 3% sequential decline.

The company’s EBIT margin stood at 24%, compared to 25.3% in the corresponding period last year, resulting in a 130 basis point contraction.

AI Business Continues to Gain Momentum

Artificial intelligence remained a major growth driver for TCS during the quarter.

The company reported annualized AI revenue of $2.6 billion, registering a 13.6% sequential increase as enterprises continued to invest in AI-led digital transformation initiatives.

Strong Deal Pipeline

TCS secured a Total Contract Value (TCV) of $9.5 billion during the quarter, supported by several large transformation engagements.

Among the notable wins was an $800 million AI-led business transformation deal with SKF. The company also signed a strategic partnership with ServiceNow and secured another multi-million-dollar engagement with a Europe-based Fortune Global 50 company.

TCS Declares Interim Dividend

Alongside its quarterly earnings, TCS announced an interim dividend of ₹12 per equity share.

The record date for determining shareholder eligibility has been fixed as July 15, 2026, while the dividend payment will be credited on or before July 31, 2026.

TCS Share Price

TCS shares ended the trading session at around ₹2,059 per share. Despite the recovery during the day, the stock remains down by approximately 35–36% year-to-date, reflecting broader weakness in the IT sector.

Key Highlights

• Net profit stood at ₹13,349 crore.
• Revenue rose 2.2% QoQ to ₹72,275 crore.
• Constant currency revenue growth came in at 0.4%.
• EBIT was ₹17,317 crore with an EBIT margin of 24%.
• Annualized AI revenue reached $2.6 billion, up 13.6% sequentially.
• Total Contract Value (TCV) stood at $9.5 billion.
• Won an $800 million AI transformation deal with SKF along with other strategic partnerships.
• Declared an interim dividend of ₹12 per share.

 

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