Financial Performance
- Revenue: ₹63,437 crore
Year-on-year (YoY) growth of 1.3%, though it missed street expectations. Constant currency revenue saw a decline of 3.1% YoY, indicating continued macroeconomic headwinds. - Net Profit (PAT): ₹12,760 crore
Up 6% YoY, driven by improved operational efficiency and controlled costs. This was above analyst forecasts. - Operating Margin: 24.5%
Increased by 30 basis points (bps) quarter-on-quarter (QoQ), reflecting strong cost management despite flat revenue growth. - Net Margin: 20.1%, improving by about 90 bps YoY.
🧾 Key Business Highlights
- Deal Wins:
Total contract value (TCV) stood at $9.4 billion, slightly lower than the previous quarter but better than the same period last year. There was strong traction in AI, cloud transformation, cybersecurity, and digital services. - Vertical Performance:
- BFSI (Banking, Financial Services, Insurance): +1%
- Technology Services: +1.8%
- Other verticals (Retail, Manufacturing, Life Sciences): showed slight declines.
- Geographic Revenue Trends:
- North America & Europe: Declined due to macro uncertainties and delayed decision-making.
- India: Strong growth of 37% YoY, with significant deals in government and digital transformation segments.
- Other Markets: Mixed trends with selective growth in Asia Pacific and Latin America.
👨💼 Operational Overview
- Employee Strength:
Total headcount at 613,069, reflecting a net addition of over 6,000 employees YoY.- Attrition Rate: Rose slightly to 13.8% from 13.3% in the previous quarter.
- Upskilling & AI Focus:
TCS intensified its push in AI readiness with 114,000+ employees trained in advanced AI competencies. Over 15 million learning hours were completed, indicating a major upskilling drive. - Wage Hikes:
TCS has deferred broad-based wage hikes due to margin pressures but continues to reward high performers selectively.
🚀 Strategic Focus & Outlook
- TCS remains committed to:
- Expanding its AI and GenAI service offerings.
- Investing in new platforms like SovereignSecure Cloud, Cyber Defense Suite, and Industry 4.0 digital tools.
- Improving operational margins in the range of 26–28% over the medium term.
- Management Commentary:
The CEO acknowledged macroeconomic challenges and geopolitical uncertainties, especially in the U.S. and Europe. However, he expressed confidence in recovery from H2 FY26 as client budgets stabilize.
💰 Shareholder Updates
- Declared an interim dividend of ₹11 per share.
- Record Date: July 16, 2025
- Payment Date: August 4, 2025
✅ Summary
| Metric | Q1 FY26 Performance |
|---|---|
| Revenue | ₹63,437 crore (+1.3% YoY) |
| Net Profit | ₹12,760 crore (+6% YoY) |
| Operating Margin | 24.5% (+30 bps QoQ) |
| Deal Wins | $9.4 billion TCV |
| Attrition | 13.8% |
| Dividend | ₹11/share |
Conclusion:
TCS delivered a steady Q1 performance with solid profit growth and margin discipline despite sluggish revenue expansion. Strategic investments in AI, talent, and digital transformation continue to position the company for long-term growth, even as short-term demand remains soft.