TCS Q1 result: Net profit rises 6% to ₹12,740 cr; interim dividend declared

The directors of the company declared an interim dividend of ₹11 per equity share

IT major Tata Consultancy Services (TCS) on Thursday reported a 6 per cent rise in consolidated net profit for the first quarter (Q1) of the financial year 2025-26 (FY26). The company reported a net profit (attributed to shareholders of the company) of ₹12,760 crore, up from ₹12,040 crore reported during the same period last year.

 

On a quarterly-basis, consolidated net profit grew by 4.4 per cent. 

 

Consolidated revenue from operations grew modestly by 1.3 per cent year-on-year (Y-o-Y) to ₹63,437 crore, up from ₹62,613 crore. Sequentially, however, revenue declined by 1.6 per cent from ₹64,479 crore, a slightly steeper drop than analysts had anticipated. Analysts tracked by Business Standard had projected revenue at ₹64,342.93 crore, with the decline largely attributed to lower BSNL-related revenues.

 

TCS Q1 result: Dividend declared

TCS has announced an interim dividend of ₹11 per equity share with a face value of ₹1. According to a stock exchange filing, the dividend will be paid on August 4, 2025. The company has set July 16, 2025, as the record date to determine eligible shareholders for the payout.     

TCS secures contracts worth $9.4 billion in Q1

The Total Contract Value (TCV) for Q1 stood at $9.4 billion for TCS. Commenting on this, CEO and MD K Krithivasan said, “We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business.” 

Segment-wise, energy, resources and utilities recorded the highest year-on-year growth at 2.8 per cent in constant currency, followed by technology and services, which grew by 1.8 per cent. The banking, financial services and insurance (BFSI) sector remained stable with a modest 1.0 per cent increase. In contrast, both life sciences and healthcare and communication and media experienced sharp declines of 9.6 per cent each. 

TCS workforce growth

  Headcount at the tech firm also rose by 6,071 Y-o-Y, bringing total workforce strength to 613,069. Meanwhile, attrition in IT services stood at 13.8 per cent over the last 12-month period, signaling stabilisation, the company said  

Shares of TCS closed trading at ₹3,395 each on the NSE, up 0.33 per cent, ahead of the company's result announcement.   

TCS Q1 highlights

Revenue from operations: ₹63,437 crore, up 1.3 per cent

 

Net profit (attributable to owners): ₹12,760 crore, up 6 per cent

 

Earnings per share (EPS): ₹35.27 (basic and diluted)