TCS Q1 Results: Net Profit Rises 4% QoQ, Rs 11 Dividend Declared

TCS Q1 Results: Tata Consultancy Services (TCS), the largest IT services company in India, announced its Q1 FY26 results on July 10. The tech behemoth reported a consolidated net profit Rs 12,760 crore as against Rs 12,040 crore in the corresponding quarter of the previous year. This is nearly a 6 per cent growth year-on-year (YoY). On sequential basis, it had reported Rs 12,224 crore consolidated net profit in Q4 FY25, a growth of 4.38 per cent.

Consolidated revenues from operations came in at Rs 63,437 crore for the quarter under review, a growth of 1.31 per cent YoY from Rs 62,613 crore. Quarter-on-quarter (QoQ), the company's revenue declined 1.64 per cent from previous quarter's Rs 64,479 crore.

K Krithivasan, Chief Executive Officer and Managing Director, TCS, said, “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. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimisation, vendor consolidation and AI-led business transformation”.

TCS Dividend FY26

The board of directors of TCS has also declared an interim dividend of Rs 11 per share for FY26. The record date for the dividend is July 16, and the payment is scheduled for August 4, 2025.

TCS has declared a cumulative dividend of Rs 137 per share over the past 12 months, translating into a dividend yield of around 4 per cent at the current market price.

Headcount Addition, Attrition Rate

TCS added a net 6,071 employees over the past year, taking its total headcount to 6.13 lakh. The attrition rate fell to 13.8 per cent over the last twelve months.

Milind Lakkad, Chief HR Officer, said, "“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”.

TCS Q1 Results: Key Highlights

• Revenue: Rs 63,437 crore, up 1.3 per cent YoY, down 1.6 per cent QoQ, down 3.1 per cent YoY in CC terms

• Net Profit: Rs 12,760 crore, up 6 per cent YoY and 4.4 per cent QoQ

• Operating Margin: 24.5 per cent, expanded by 30 bps QoQ

• Net Margin: 20.1 per cent, up 90 bps YoY

• Net Cash from Operations: Rs 12,804 crore (100.3 per cent of net income)

• Total Workforce: 6.13 lakh

• Net Headcount Addition: 6,071 YoY

• LTM IT Services Attrition: 13.8 per cent

• Total Contract Value (TCV): $9.4 billion

• Large deal wins across BFSI, life sciences, telecom, manufacturing, and retail

TCS Share Price

After a volatile session on July 10, ahead of its results announcement, TCS share price settled flat at Rs3,382 on the National Stock Exchange (NSE), with a slight negative bias of 0.05 per cent.

TCS shares have been under consolidation for the past three quarters and has declined over 26 per cent from its all-time high price of Rs 4,592.25 per share, hit on August 30, 2024. From its 52-week low of Rs 3,045.50 per share, TCS is up around 11 per cent.