TCS Q1 FY26 Net Profit Rises 6% YoY to ₹12,760 Crore; Declares ₹11 Dividend Amid Robust Deal Momentum
By Shishta Dutta | Published at: Jul 10, 2025 05:31 PM IST
Mumbai, July 10, 2025 — Tata Consultancy Services Limited (NSE: TCS, BSE: 532540) announced its financial results for the quarter ended June 30, 2025, posting a steady operational performance with strong deal wins despite macroeconomic headwinds.
Key Financial Highlights (Consolidated)
| Particulars | Q1 FY26 | Q1 FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹63,437 crore | ₹62,613 crore | +1.3% |
| Revenue (Constant Currency) | – | – | -3.1% |
| Operating Margin | 24.5% | 24.2% (QoQ) | +30 bps QoQ |
| Net Profit | ₹12,760 crore | ₹12,040 crore | +6.0% |
| Net Margin | 20.1% | 19.2% | +90 bps |
| EPS | ₹35.27 | ₹33.28 | +6.0% |
| Net Cash from Operations | ₹12,804 crore | – | 100.3% of Net Profit |
| Dividend per Share | ₹11 | ₹9 | – |
| Dividend Record Date | 16-Jul-2025 | – | – |
| Dividend Payment Date | 04-Aug-2025 | – | – |
“We saw robust deal closures despite demand contraction caused by ongoing global uncertainties,” said K Krithivasan, CEO & MD, TCS. “Our new services, especially AI-led transformation offerings, grew well and we remain deeply engaged with customers navigating the evolving business environment.”
Segment Performance
Industry-wise Growth (YoY in Constant Currency)
| Segment | YoY Growth (%) |
|---|---|
| BFSI | +1.0 |
| Technology & Services | +1.8 |
| Energy, Resources & Utilities | +2.8 |
| Consumer Business | -3.1 |
| Manufacturing | -4.0 |
| Life Sciences & Healthcare | -9.6 |
| Communication & Media | -9.6 |
| Regional Markets & Others | -8.6 |
Geography-wise Growth (YoY in Constant Currency)
| Region | YoY Growth (%) |
|---|---|
| MEA | +9.4 |
| Asia Pacific | +3.6 |
| Latin America | +3.5 |
| North America | -2.7 |
| Continental Europe | -3.1 |
| UK | -1.3 |
| India | -21.7 |
Deal Pipeline & Strategic Initiatives
TCS reported a Total Contract Value (TCV) of US$9.4 billion in Q1, driven by wins in GenAI transformation, SAP S/4HANA modernisation, cybersecurity, and cloud services. Some key partnerships and deals include:
- Virgin Atlantic: Expansion of a 20+ year strategic partnership to modernize tech operations with AI and cloud solutions.
- ICICI Securities: Modernization of trading platforms using TCS BaNCS™.
- Salling Group (Denmark): Digital transformation to drive sustainability and e-commerce growth.
- DNA (Finland): 5-year cloud migration program aiming for 80% public cloud adoption by 2030.
- Council of Europe Development Bank: Deployed TCS BaNCS™ Reconciliation for automation of high-value transactions.
Workforce & Innovation
- Total headcount stood at 613,069, with a net addition of 6,071 employees YoY.
- 15 million learning hours invested by associates during the quarter.
- 114,000+ employees trained in advanced AI skills.
- 8,987 patents filed, with 4,939 patents granted as of June 30, 2025.
Awards & Recognition
TCS earned multiple global accolades in Q1 FY26, including:
- Featured among Kantar BrandZ Top 50 Global Brands, with a 28% increase in brand value to $57.3 billion.
- Named among LinkedIn’s Top 10 Tech Companies in India, US, UK, and Sweden.
- Five awards at Google Cloud Next 2025, including for AI and financial services.
- Ranked #1 for IT Service Customer Satisfaction in Denmark by Whitelane Research.
Strategic Outlook
Aarthi Subramanian, COO, emphasised, “Clients are shifting from use-case experimentation to ROI-led AI scaling. We launched TCS SovereignSecure™ Cloud and TCS DigiBOLT™ to power this shift and accelerate India’s AI-led transformation.”
CFO Samir Seksaria highlighted, “TCS maintains industry-leading profitability and strong cash conversion, which supports our ability to invest in long-term growth amid a dynamic business environment.”
Tata Consultancy Services Stock Performance
Tata Consultancy Services shares closed at ₹3,395 or up 0.33% on July 10, 2025. Tata Consultancy Services shares have declined 13% over the last year, 17% year-to-date, and 1.96% in the previous month.
REF: https://nsearchives.nseindia.com/corporate/TCS_CORPCS_10072025160055_BM_Outcome_-_July_2025__pressrelease.pdf
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