TCS Q1 FY26 Results: Steady Profit Growth Despite Soft Revenue; Deal Wins Remain Healthy
Tata Consultancy Services (TCS), India’s largest IT services company, started FY26 on a steady note with a 6% rise in net profit, reaching ₹12,760 crore in Q1. This growth came even as revenue increased modestly, indicating that the company is navigating a cautious global demand environment while maintaining strong cost control.
Revenue for the quarter stood at ₹63,437 crore, growing just 1.3% sequentially, reflecting limited tech spending by clients—especially in North America and Europe. However, operating margins improved to 24.5%, driven by better internal efficiency and resource allocation.
TCS announced an interim dividend of ₹11 per share, continuing its trend of steady shareholder payouts. It also generated ₹12,804 crore in net operating cash flow, nearly matching its profit, showing strong execution and financial discipline.
During the quarter, the company secured new deals worth $9.4 billion, a solid number given the current market uncertainty. Management shared that demand continues in digital transformation, AI, and automation though discretionary spending remains tight in some verticals.
Hiring picked up again after a pause, with over 6,000 net additions, and attrition dropped to 13.8%, signaling improving workforce stability.
While the macro environment remains uncertain, TCS enters the next quarter with a healthy pipeline, a stable cost structure, and strategic bets on AI services and long-term transformation projects.
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