TCS logs 6 pc net profit growth at 12,760 crore in Q1, to give Rs 11 interim dividend

Mumbai, July 10 (IANS) Kicking off the Q1 FY26 earnings season, IT bellwether Tata Consultancy Services (TCS) on Thursday said it registered around 6 per cent growth in net profit (year-on-year) at Rs 12,760 crore, which surpassed analyst expectations.

The IT major saw revenue from operations growing 1.3 per cent (on-year) to Rs 63,437 crore for the April-June quarter.

TCS declared an interim dividend of Rs 11 per share of Re 1 face value each.

"The interim dividend shall be paid on Monday, August 4, 2025, to the equity shareholders of the company," it said in a stock exchange filing.

“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,” said K Krithivasan, Chief Executive Officer and Managing Director.

He added that the company remains closely connected to its customers to help them navigate the challenges impacting their business, through cost optimisation, vendor consolidation and AI-led business transformation.

Ahead of the earnings announcement, TCS share closed with moderate gain 0.4 per cent at Rs 3,397.1 apiece.

Operating margins expanded sequentially. The EBIT margin for the fiscal first quarter expanded 30 bps to 24.5 percent from 24.2 per cent in Q4, as per the TCS filing.

“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,” said Aarthi Subramanian, Executive Director-President and Chief Operating Officer.

The company reported net Headcount addition of 6,071 in the quarter, with Last Twelve-Month (LTM) attrition at 13.8 per cent.

Milind Lakkad, Chief HR Officer, said that 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,” he added.

--IANS

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