TCS Q1 results: Profit climbs 5% YoY to ₹13,349 crore. Key highlights from June quarter earnings

TCS Q1 results: Indian IT heavyweight Tata Consultancy Services (TCS), on Thursday, 9 July, reported an almost 5% year-on-year (YoY) rise in its consolidated net profit for the April-June quarter of the current financial year (Q1FY27) to ₹13,349 crore.

In the same quarter last year, the company's profit was ₹12,760 crore.

However, on a sequential or quarter-on-quarter (QoQ) basis, TCS's profit declined by nearly 3%, as the IT company's profit was ₹13,718 crore in Q4FY26.

Revenue from operations for the quarter under review rose by 14% YoY and 2.2% QoQ to ₹72,275 crore. In Q1FY26, the company's revenue was ₹63,437 crore, while in Q1FY26, it was ₹70,698 crore.

“Q1FY27 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 annualised revenue run rate," said K Krithivasan, Chief Executive Officer and Managing Director, TCS.

"As customers accelerate investments in AI, modernisation, 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.

Q1 revenue saw a modest 0.4% QoQ rise in constant currency (CC). Its annualised AI revenue increased by 13.6% QoQ to $2.6 billion in Q1.

EBIT declined 3% QoQ to ₹17,317crore, while EBIT margin came at 24% compared to 25.3% in Q4FY26, largely due to wage hikes.

“In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industry-leading profitability and return ratios,” said Samir Seksaria, Chief Financial Officer, TCS.

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