Tata Consultancy Services on Thursday reported a 3% year-on-year decline in its revenue from operations (constant currency terms) to ₹63,437 crore during the first quarter of the financial year 2025–26 (Q1 FY26).
"The continued global macro-economic and geo-political uncertainties caused a demand contraction," said K Krithivasan, Chief Executive Officer and Managing Director of the Mumbai-based IT giant. However, he noted that all the new services grew well and the company saw "robust deal closures during this quarter."
In rupee terms, Q1 revenue was up 1.3% year-on-year. The company saw its net profit rise 6 percent year-on-year to ₹12,760 crore during the April–June quarter. For the quarter ended June 2025, TCS secured new deals worth $9.4 billion in Total Contract Value (TCV), which is a decline from $12.2 billion in the previous quarter, though it exceeded market expectations of $8–9 billion.
Major drags came from Life Sciences & Healthcare (-9.6%), Communication & Media (-9.6%), and the India market (-21.7%). However, there were some pockets of resilience, with BFSI (+1.0%), Technology & Services (+1.8%), and Energy & Utilities (+2.8%) showing moderate growth. On the geographic front, MEA (+9.4%), Asia Pacific (+3.6%), and Latin America (+3.5%) helped offset deeper declines in other regions.
The company reported a slight improvement in its operating performance, with EBIT margins increasing by 30 basis points quarter-on-quarter—from 24.2% in Q4FY25 to 24.5% in Q1FY26.
Tata Consultancy Services (TCS) has announced an interim dividend of ₹11 per share, based on a face value of ₹1 per share. According to its stock exchange filing, the dividend will be distributed on Monday, August 4, 2025, to shareholders whose names appear on the company’s books as of the record date—July 16, 2025.
Ahead of its quarterly earnings release, TCS shares closed with a modest rise of 0.4%, ending at ₹3,397.10.
During the April–June period, TCS added 6,071 new employees, bringing its total workforce to 6,13,069 as of June 30, 2025.
Employee attrition ticked up slightly in Q1FY26, reaching 13.8% on a trailing 12-month basis, compared to 13.3% in the prior quarter and 13% in Q3FY25, according to the company’s official statement released on July 10.
“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 1,14,000 people with higher-order AI skills," said Milind Lakkad, Chief HR Officer.
Recently appointed President and Chief Operating Officer of TCS, Aarthi Subramanian, said that the company is investing across the AI ecosystem including infrastructure, data platform solutions, AI agents, and business applications.
"Launching TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defense Suite to accelerate India’s AI-led transformation was a particular highlight of this quarter," she noted.
"We continued our investments in long-term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry-leading profitability alongside robust cash conversion positions us well to make strategic investments for the future," said Samir Seksaria, Chief Financial Officer.
