TCS Q1 net up 6% at Rs 12,760 crore; Company gives Rs 11/share as interim dividend
New Delhi, Jul 10: Staring the earning season on a positive note, India’s largest IT firm and Tata Group flagship Tata Consultancy Services (TCS) today reported 6 per cent jump in net profit at Rs 12,760 crore year-on-year during the first quarter (April-June) of 2025-26, versus Rs 12,040 crore in the same quarter last year. The company has declared an interim dividend of Rs 11 per share with the record date as July 16 and payment will be made on August 4 this year.
Consolidated income from operations registered a modest growth of 1.3 per cent year-on-year to Rs 63,437 crore, up from Rs 62,613 crore. Sequentially, however, revenue declined by 1.6 per cent from Rs 64,479 crore, the company said in a regulatory filing with the stock exchanges.
K Krithivasan, Chief Executive Officer and Managing Director, said “The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation”.
TCS’s total workforce stood 613,069 with net headcount addition of 6,071 year-on-year basis. Milind Lakkad, Chief HR Officer, said “Talent Development is core to TCS. In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers. It is gratifying to note that TCS now has 114,000 people with higher order AI skills”.
Geography wise, the North America, TCS’s largest market, fell by 2.7 per cent with revenues from this market fell to 48.7 per cent in the Q1 this financial year from 49.5 per cent in the same quarter of last fiscal. Similarly in Europe also UK’s share fell by 1.3 per cent while the continental Europe also contributed lower revenue by 3.1 per cent. The Asia Pacific market grew by 3.6 per cent during the April-June quarter, the company said in the filing.
Aarthi Subramanian, Executive Director – President and Chief Operating Officer, said “Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications. Launching TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defense Suite, to accelerate India’s AI led transformation was a particular highlight of this quarter”.
The company continued its investments in long term sustainable growth this quarter. “We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry leading profitability alongside robust cash conversion, positions us well to make strategic investments for the future,” Samir Seksaria, Chief Financial Officer, said commenting on the financial performance.
TCS’s shares remained stable with a marginal loss of Rs.1.80 a share and closed at Rs 3,382.
Total Contract Value (TCV) during the April-June quarter stood USD 9.4 billion, TCS said adding during this quarter, clients prioritized scaling AI across the enterprise, transforming contact centers, optimizing costs, and improving cyber defense capabilities. The growth for the quarter was led by AI & Data, TCS Interactive, and Cyber Security.
