TCS Q1 Results: IT major Tata Consultancy Services (TCS) reported its June quarter (Q1FY26) earnings after market hours on Thursday, July 10. The company reported a 6 per cent year-on-year growth in profit, but revenue inched up by just 1 per cent.
The company highlighted demand contraction due to global macroeconomic and geopolitical uncertainties, but added it saw robust deal closures during the June quarter.
“The continued global macroeconomic and geopolitical uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS.
“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,” the TCS CEO said.
Meanwhile, the company declared an interim dividend of ₹11 per share for FY26, with a face value of ₹1 apiece
TCS Q1 earnings: Five key highlights
1. The numbers
Consolidated profit for the quarter rose 6 per cent year-on-year (YoY) to ₹12,760 crore from ₹12,040 crore in the same quarter last year. Revenue from operations inched up by 1.3 per cent YoY to ₹63,437 crore in Q1FY26 from ₹62,613 crore in Q1FY25.
However, in constant currency (CC) terms, revenue declined 3.1 per cent YoY.
The operating margin for the quarter stood at 24.5 per cent, up 30 bps sequentially.
“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, TCS.
2. How did the key domains perform?
Most domains saw de-growth during the quarter, with “Communication & Media” and “Life Sciences & Healthcare” declining 9.6 per cent YoY each in CC terms.
“Regional Markets & Others” de-grew 8.6 per cent YoY, “Manufacturing” domain saw a de-growth of 4 per cent YoY, while “Consumer Business” domain de-grew 3.1 per cent YoY.
However, the BFSI segment grew 1 per cent YoY in CC terms. The “Energy, Resources and Utilities” and “Technology & Services” domains grew 2.8 per cent and 1.8 per cent YoY, respectively.
3. Regional markets
Among key geographical markets, India witnessed a significant de-growth of 21.7 per cent YoY in CC terms, followed by Continental Europe (down 3.1 per cent YoY) and North America (down 2.7 per cent YoY).
On the other hand, MEA market grew 9.4 per cent YoY, while Asia Pacific and Latin America saw decent growth of 3.6 per cent and 3.5 per cent, respectively.
4. Key deal wins
The company said that during the quarter, clients prioritised scaling AI across the enterprise, transforming contact centres, optimising costs, and improving cyber defence capabilities.
“The growth for the quarter was led by AI & Data, TCS Interactive, and Cyber Security.
Win themes across key deals involved operating model transformation, vendor consolidation, AI powered intelligent automation, and SAP S4/HANA based transformation deals,” TCS said.
The total contract value (TCV) in Q1 stood at $9.4 billion.
Among the key deal wins, TCS said it partnered with IBM to advance quantum algorithm and application development by playing a critical role in the Quantum Valley Tech Park in India.
It also partnered with a large Canadian Bank for Enterprise Data Transformation and Management.
TCS has partnered with Jazeera Airways, Kuwait’s leading low-cost carrier, to drive the next phase of its digital transformation.
TCS expanded its two-decade-long strategic partnership with Virgin Atlantic to accelerate its digital transformation journey.
5. Headcounts and attrition
According to the company’s exchange filing, TCS’s workforce stood at 613,069 as of June 30, 2025.
IT services’ attrition was at 13.8 per cent for the last twelve months.
“Our associates invested 15 million hours and acquired 1.3 million competencies in emerging technologies, enabling them to lead the transformation journey for our customers,” said the company.
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