India's largest IT services company, Tata Consultancy Services (TCS), on Thursday reported 5% year-on-year (YoY) growth in its consolidated net profit at Rs 13,349 crore for the first quarter. The same stood at Rs 12,760 crore in the year-ago period.The company's board has approved an interim dividend of Rs 12 per share for the financial year FY27 and fixed July 15 as the record date.Revenue from operations in the period under review increased 14% YoY to Rs 72,275 crore.On a sequential basis, revenue grew 2.2% in rupee terms and 0.4% in constant currency.Operating margin stood at 24%, while net margin came in at 19.2%. The company said the numbers exclude exceptional items. Net cash from operations stood at Rs 12,412 crore, or 93% of net income.The company’s order book for the quarter stood at $9.5 billion. This included an $800 million AI-led transformation deal with SKF, a multi-million-dollar strategic partnership with ServiceNow and another multi-million-dollar deal with a Europe-based Fortune Global 50 company.TCS said its annualised AI revenue run rate reached $2.6 billion in Q1FY27, up 13.6% quarter-on-quarter. The company said it won several AI-led deals across IT operations, software engineering, modernisation, SaaS implementation and autonomous global business services.CEO K Krithivasan said the quarter reflected continued growth momentum despite geopolitical and macroeconomic headwinds. He said customers were increasing investments in AI, modernisation, cybersecurity, sovereign cloud and platform simplification.TCS also signed strategic partnerships with Anthropic and Mistral during the quarter. Under the Anthropic partnership, TCS will set up a dedicated business unit and give 50,000 associates access to Claude through enterprise-wide licensing. With Mistral, TCS said it became the first global systems integrator partner for Mistral Forge.The company’s employee strength stood at 5,93,798 at the end of June. IT services attrition for the last 12 months was 13.6%. TCS said it completed annual salary increases for all associates globally during the quarter and aligned salary structures with India’s new Labour Code requirements.More to come...
TCS Q1 Results: Profit rises 5% YoY to Rs 13,349 crore; co declares Rs 12/share dividend
TCS Q1 Results: TCS reported a 5% year-on-year rise in Q1FY27 consolidated net profit to Rs 13,349 crore, while revenue grew 14% to Rs 72,275 crore. The company declared an interim dividend of Rs 12 per share, maintained a healthy order book of $9.5 billion, and continued to expand its AI-led business momentum.
323 words~1 min read
