TCS Q1 Results: Cons PAT up 6% YoY at Rs 12,760 crore; Rs 11 per share dividend declared

Indian IT bellwether Tata Consultancy Services (TCS) on Thursday reported a 6% growth in its Q1FY26 consolidated net profit at Rs 12,760 crore versus Rs 12,040 crore in the year ago period.

The PAT was above Street estimates of Rs 12,205 crore.

The revenue from operations rose 1.3% at Rs 63,437 crore versus Rs 62,613 crore in the year ago period.

TCS also announced an interim dividend of Rs 11 per share for the financial year 2025-26. The interim dividend will be paid on August 4, 2025 and the record date has been fixed on July 16.

TCS reported a revenue decline of 3.1% YoY in Constant Currency terms.

Management commentary

CEO K Krithivasan said that the continued global macro-economic and geo-political uncertainties caused a demand contraction though on the positive side, all the new services grew well. “We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation,” Krithivasan said.

The quarter was also marked by a robust Order Book and operational resilience, said the company in its filing to the exchanges. The Q1 Total Contract Value (TCV) stood at $9.4 billion.

The earnings were announced after market hours and TCS shares today ended at Rs 3,395 on the NSE, up by Rs 11.20 or 0.33%.

Other key takeaways:

• Operating Margin stood at 24.5% which was an expansion of 30 bps QoQ
• Company’s net margin stood at 20.1%
• The net cash from operations at Rs 12,804 crore which was at 100.3% of the Net Income
• The last twelve month (LTM) IT Services attrition rate stood at 13.8%