TCS Results Review: Tata Consultancy Services (TCS), India’s largest software services exporter, saw its share price jump over 3% in intra-day deals on Friday, July 10, after it reported strong Q1 results on 9 July 2026.
The stock rose 4.11% to its day’s high of ₹2,132.00 on BSE. The IT major has been under pressure in recent times. The scrip lost 2% in 1 month, 16% in 3 months, 33% in 6 months and 38% in 1 year.
TCS Q1 Results 2026
TCS reported a 5% year-on-year (YoY) increase in consolidated ₹13,349 crore for the June quarter”>net profit to ₹13,349 crore for the June quarter (Q1FY27), compared with ₹12,760 crore in the corresponding quarter last year. On a sequential basis, however, net profit declined 3% from ₹13,718 crore reported in the March quarter.
Revenue from operations grew 14% YoY to ₹72,275 crore from ₹63,437 crore a year earlier. Compared with the March quarter, revenue rose 2% from ₹70,698 crore.
The company’s board also declared an interim dividend of ₹12 per equity share. July 15, 2026 has been fixed as the record date to determine eligible shareholders, while the dividend will be paid on July 31, 2026.
Sharing his views on the quarter, K Krithivasan, Chief Executive Officer and Managing Director of TCS, said the company continued to deliver resilient growth despite geopolitical and macroeconomic challenges.
“Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds. We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualized revenue run rate. As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth,” Krithivasan said.
Should you buy TCS post Q1 Results?
Brokerages remained divided on TCS following its June quarter results. While some believe the company is well placed to benefit from improving demand and AI-led transformation over the medium term, others remain cautious due to persistent macroeconomic challenges, pricing pressure and AI-led disruptions.
Centrum Broking: Centrum retained its ‘Buy’ rating on TCS, while revising its target price to ₹3,480 from ₹3,841 earlier after rolling forward its valuation to September 2028 estimates. The brokerage also lowered its target P/E multiple to 20x from 22x to factor in the subdued demand environment. It noted that TCS delivered an in-line quarter, with revenue rising 2.2% quarter-on-quarter (QoQ) and 13.9% year-on-year (YoY) in rupee terms, while dollar revenue remained flat sequentially and grew 2.7% YoY. In constant currency (CC) terms, revenue increased 0.4% QoQ and 3.2% YoY.
“Demand environment is improving gradually, supported by strong large-deal momentum and rising enterprise confidence despite macro uncertainties. AI-led transformation remains the key growth driver, with clients scaling enterprise-wide modernization programs. Management’s continued strong hiring and AI-focused talent investments also reflect confidence in medium-term demand recovery,” Centrum said. The brokerage expects Revenue/EBITDA/PAT CAGR of 7.7%/8.1%/7.1% over FY26-FY29E.
360 ONE Capital: 360 ONE Capital maintained its ‘Hold’ rating on the stock with an unchanged target price of ₹2,290, based on 14x FY28E EPS. The brokerage said TCS’ Q1FY27 performance was broadly in line with expectations, with 0.4% QoQ CC revenue growth, while the 24% EBIT margin, down 130 basis points QoQ, was impacted by annual wage hikes. It added that growth was driven by India and APAC, whereas developed markets remained relatively subdued. The company also reported $9.5 billion in deal wins, including one mega deal.
“Management was slightly optimistic for the near-term outlook, supported by improving client conversations and a recovery across most verticals. Despite benign valuations (13.1x/12.5x for FY27/28E EPS), we believe the scope for a near-term re-rating remains limited, as AI-led disruptions, pricing pressures and a subdued macro environment continue to weigh on growth expectations and investor sentiment,” 360 ONE Capital said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
