Tata Consultancy Services (TCS) has announced its Q1 FY26 financial results, showing a steady rise in profitability despite macroeconomic challenges. The company also declared an interim dividend of ₹11 per share, reaffirming its strong cash flow and investor focus.
Financial Highlights
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Net Profit: ₹12,760 crore, a 6% increase compared to the same quarter last year.
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Quarter-on-Quarter Profit Growth: 4.4% over the previous quarter.
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Revenue from Operations: ₹63,437 crore, marking a 1.3% year-on-year growth but a 1.6% decline sequentially.
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Operating Margin: 24.5%, improved by approximately 30 basis points.
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Net Margin: 20.1%.
Dividend Announcement
TCS has declared an interim dividend of ₹11 per equity share (face value ₹1).
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Record Date: July 16, 2025
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Payment Date: August 4, 2025
This move reflects the company’s strong balance sheet and consistent performance in delivering value to shareholders.
Deal Wins and Digital Services Momentum
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Total Contract Value (TCV): $9.4 billion in Q1 FY26, compared to $8.3 billion in Q1 FY25.
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Growing Verticals: Energy, Resources & Utilities grew by 2.8% YoY; Technology & Services by 1.8%.
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Underperforming Segments: Life Sciences & Healthcare and Communications & Media witnessed a decline of 9.6% YoY.
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Emerging Focus Areas: AI, cybersecurity, and enterprise data modernization continue to see strong demand.
Geographical Performance
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North America: Declined 2.7% YoY.
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UK and Europe: Decrease of 1–3% YoY.
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India: Fell 21.7% YoY due to the tapering of large government contracts.
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Asia-Pacific, LATAM, MEA: Growth ranging from 3.5% to 9.4%.
Workforce and Talent Development
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Total Employees: 613,069 as of June 30, 2025.
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Attrition Rate: 13.8% (rolling 12-month basis), slightly up from 13.3% in the previous quarter.
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AI Upskilling: 114,000 employees trained in advanced AI; 15 million learning hours logged in the quarter.
Leadership Commentary
CEO K Krithivasan said that ongoing global uncertainties affected demand, but the company continued to win large deals and saw solid growth in newer services like AI and cybersecurity.
CFO Samir Seksaria emphasized TCS’s focus on sustainable growth and margin discipline, supported by strong operational efficiency and cash flow.
Chief HR Officer Milind Lakkad highlighted TCS’s commitment to upskilling and future-ready talent development, with a major push in AI training and certifications.
Conclusion
TCS delivered a stable Q1 FY26 performance with strong profitability, a robust deal pipeline, and continued focus on high-growth digital areas. While revenue growth remains modest, the ₹11 interim dividend and large AI-trained workforce show the company’s confidence and future readiness. TCS is clearly positioning itself as a long-term digital transformation partner for global enterprises.
