Tata Consultancy Services (TCS) reported 5% year-on-year (YoY) increase in consolidated net profit
Net cash generated from operations was ₹12,412 crore
TCS expanded its AI ecosystem during Q1FY27 through strategic partnerships with Anthropic and Mistral
India's IT services company, Tata Consultancy Services (TCS), on Thursday reported a 5% year-on-year (YoY) increase in consolidated net profit to ₹13,349 crore for the quarter ended June 2026.
The company's revenue climbed 14% to ₹72,275 crore.
1 June 2026
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According to the company's official earnings statement, revenue grew 2.2% sequentially in rupee terms and 0.4% in constant currency, while operating margin stood at 24% and net margin at 19.2%.
Net cash generated from operations was ₹12,412 crore, equivalent to 93% of net income.
The company's board also approved an interim dividend of ₹12 per share for FY27. The record date has been fixed as 15 July, with the dividend scheduled to be paid on 31 July, TCS said.
AI Deals Strengthen Order Pipeline
TCS reported a total contract value (TCV) of $9.5 billion during the quarter, supported by several AI-focused transformation engagements.
These included an $800 million enterprise transformation programme with industrial manufacturer SKF, a multi-million-dollar strategic partnership with ServiceNow and another multi-million-dollar contract with a Europe-based Fortune Global 50 company.
The company also said its annualised AI revenue run rate reached $2.6 billion in the first quarter, marking a 13.6% sequential increase, driven by demand for AI-led services across IT operations, software engineering, enterprise modernisation and autonomous business services.
TCS also expanded its AI ecosystem during the quarter through strategic partnerships with Anthropic and Mistral. As part of the Anthropic collaboration, the company will establish a dedicated business unit and provide enterprise-wide access to Claude for 50,000 associates. It also became the first global systems integrator partner for Mistral Forge.
According to TCS, it ended the quarter with a workforce of 593,798 employees, while its IT services attrition over the last twelve months stood at 13.6%.
