Did TCS Achieve 6% Net Profit Growth at ₹12,760 Crore in Q1 While Declaring ₹11 Interim Dividend?
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Synopsis
Tata Consultancy Services (TCS) sets the tone for Q1 FY26 earnings with impressive growth, declaring a substantial interim dividend amidst challenging global conditions. Discover how TCS is navigating the complexities of the market and investing in AI to enhance their service delivery.
Key Takeaways
- TCS achieved a 6% growth in net profit for Q1 FY26.
- Declared an interim dividend of ₹11 per share.
- Revenue from operations increased by 1.3%.
- Operating margins expanded to 24.5%.
- Continued investment in AI and emerging technologies.
Mumbai, July 10 (NationPress) - As the Q1 FY26 earnings season commences, the IT giant Tata Consultancy Services (TCS) announced on Thursday that it achieved a remarkable 6% increase in net profit (year-over-year), totaling ₹12,760 crore, exceeding analyst predictions.
The company reported a 1.3% rise in operational revenue, reaching ₹63,437 crore for the April-June quarter.
TCS has declared an interim dividend of ₹11 per share, with a face value of Re 1.
According to a stock exchange announcement, this interim dividend will be distributed to the equity shareholders on Monday, August 4, 2025.
“Despite the ongoing global macro-economic and geopolitical uncertainties leading to a contraction in demand, we observed strong growth in all new services and robust deal closures this quarter,” stated K Krithivasan, the Chief Executive Officer and Managing Director.
He emphasized that the company remains closely engaged with its clients to assist them in navigating business challenges through cost optimization, vendor consolidation, and AI-driven business transformation.
Before the earnings release, TCS shares experienced a modest increase of 0.4%, closing at ₹3,397.1 each.
Operating margins showed sequential improvement, with the EBIT margin for the first fiscal quarter rising 30 basis points to 24.5% from 24.2% in Q4, as reported by TCS.
“Clients across various sectors are shifting their focus from a use-case-based approach to ROI-driven scaling of AI. We are investing in 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 recorded a net addition of 6,071 employees during this quarter, with a Last Twelve-Month (LTM) attrition rate of 13.8%.
Milind Lakkad, Chief HR Officer, mentioned that talent development is fundamental to TCS.
“This quarter, our associates dedicated 15 million hours to enhancing their skills in emerging technologies, enabling them to spearhead the transformation journey for our clients. It's noteworthy that TCS now boasts 114,000 employees with advanced AI skills,” he added.
Point of View
TCS's latest financial results highlight its resilience and adaptability in the face of unpredictable global markets. The company's commitment to innovation and skill development positions it well for future challenges, reinforcing its role as a leader in the IT sector.
NationPress
08/09/2025
Frequently Asked Questions
What was TCS's net profit for Q1 FY26?
TCS reported a net profit of ₹12,760 crore for Q1 FY26, reflecting a growth of 6% year-on-year.
What interim dividend did TCS declare?
TCS declared an interim dividend of ₹11 per share with a face value of Re 1.
How much did TCS's revenue increase by?
TCS's revenue from operations grew by 1.3% year-on-year, totaling ₹63,437 crore.
What is the attrition rate for TCS?
TCS reported a Last Twelve-Month (LTM) attrition rate of 13.8%.
How many new employees did TCS add in the quarter?
TCS added 6,071 new employees in the quarter.
