Mumbai : TCS (Tata Consultancy Services) , India’s leading IT services provider, announced a 6% year-on-year growth in net profit for the first quarter of the fiscal year 2025–26, reaching Rs 12,760 crore for the April–June period. Alongside the results, the company declared an interim dividend of Rs 11 per share, which will be paid to eligible equity shareholders on Monday, August 4, 2025.
According to the Q1 report released, TCS’ operating revenue rose by 1.3% year-on-year to Rs 63,437 crore. The company stated that despite macroeconomic and geopolitical uncertainties affecting global demand, it saw strong growth in its new service segments and has continued to win major deals across geographies.
CEO Comments on Outlook and Strategy
TCS CEO and MD K. Krithivasan said the company is well-positioned to support its clients amid global challenges.
“While demand has been subdued due to global macroeconomic and geopolitical uncertainties, our new-age services have shown good growth. This quarter, we’ve seen several large deal wins. Our focus remains on cost optimization, vendor consolidation, and AI-led business transformation for our clients.”
He added that the company is maintaining close engagement with clients and helping them navigate an evolving business landscape.
Improved Operating Margins
TCS reported an improvement in its EBIT margin, which increased by 30 basis points to 24.5% in Q1 FY2026, up from 24.2% in the previous quarter. This signals operational efficiency gains even amid a slow demand environment.
Investing in the AI Ecosystem
Aarti Subramanian, Executive Director and COO of TCS, highlighted the company’s strategic investments in AI capabilities.
“Clients across industries are shifting from exploratory AI use-cases to ROI-based scaling. We’re investing in infrastructure, data platform solutions, AI agents, and business applications as part of our AI ecosystem strategy.”
The company aims to stay ahead of the curve by developing next-gen digital solutions and leveraging AI to drive transformation.
Hiring and Attrition
During the June quarter, TCS added 6,071 new employees, indicating a cautious but optimistic hiring trend. The attrition rate over the past 12 months stood at 13.8%, a sign of relative stability in its workforce.
Dividend Details
The Board of Directors approved a Rs 11 interim dividend per equity share of face value Rs 1. TCS has informed stock exchanges about the dividend payout, which will be credited to shareholders on August 4, 2025.
TCS’ performance in Q1 FY2026 reflects resilience in a challenging global environment, continued investment in emerging technologies like AI, and commitment to shareholder value. With a robust pipeline of deals and strategic focus on digital transformation, the company remains one of the most trusted names in the global IT services space.
