Stock Report

TCS Reports 14% Revenue Growth in Q1 FY27; Declares ₹12 Interim Dividend as Net Profit Reaches ₹13,420 Crore

Posted On : 2026-07-12 11:00:10( TIMEZONE : IST )

Tata Consultancy Services Limited (TCS) has released its consolidated interim financial results for the first quarter of fiscal year 2026-27 ended June 30, 2026. India's largest information technology services exporter kicked off the fiscal year with a double-digit expansion in its top-line revenue, though profitability was slightly tempered sequentially due to a one-time exceptional legal settlement.

Income and Revenue Growth

TCS posted consolidated revenue from operations of ₹72,275 crore for the quarter ended June 30, 2026. This represents a robust 13.93% year-on-year expansion compared to the ₹63,437 crore recorded in the corresponding first quarter of the previous fiscal year (Q1 FY26), and a steady sequential gain of 2.23% over the ₹70,698 crore achieved in the immediate preceding quarter ended March 31, 2026 (Q4 FY26).

Total income for the opening quarter reached ₹73,843 crore, which includes an other income contribution of ₹1,568 crore. This total top-line is a significant step up from the ₹65,097 crore generated during the same three-month window last year.

Cost Structures and One-Time Exceptional Items

Total operational expenses for the quarter rose to ₹55,231 crore, scaling up from ₹48,118 crore in Q1 FY26 and ₹53,093 crore in Q4 FY26. The main driver of spending remains the company's human capital, with employee benefit expenses climbing to ₹42,137 crore-representing roughly 76% of total quarterly expenditures. Among secondary line items, the cost of equipment and software licenses stood at ₹1,354 crore, depreciation and amortization costs came in at ₹1,239 crore, finance costs were controlled at ₹273 crore, and miscellaneous other operating expenses totaled ₹10,228 crore.

The company's profit before exceptional items and tax rose smoothly to ₹18,612 crore, outperforming both the ₹16,979 crore posted in the year-ago quarter and the ₹18,362 crore recorded in the sequential March quarter.

However, the final profit before tax (PBT) adjusted slightly downwards to ₹17,944 crore because of a specific ₹668 crore exceptional charge recognized during the quarter under a legal claim settlement.

Profit Allocation, EPS, and Shareholder Rewards

Following a total corporate tax outgo of ₹4,524 crore (comprising a current tax provision of ₹4,722 crore and a deferred tax credit of ₹198 crore), TCS concluded the quarter with a consolidated Net Profit of ₹13,420 crore.

This bottom-line indicates a healthy 4.69% year-on-year growth path against the ₹12,819 crore netted in Q1 FY26, though it saw a minor 2.64% drop sequentially from the ₹13,784 crore recorded in Q4 FY26 due to the legal hit. Out of the net profit, ₹13,349 crore was attributable directly to the core shareholders of the company, while the remaining ₹71 crore belonged to non-controlling interests.

After incorporating total other comprehensive income gains of ₹253 crore, the total comprehensive income for the period stood at ₹13,673 crore. On a stable paid-up equity share capital base of ₹362 crore (face value of ₹1 per share), basic and diluted Earnings Per Share (EPS) for the quarter settled at ₹36.90 per share, climbing from ₹35.27 in the year-ago period.

In line with its policy of returning value to investors, the TCS Board of Directors approved a fresh interim dividend of ₹12.00 per equity share (on a par value of ₹1 each), translating into a 1,200% equity dividend payout percentage for the opening quarter of the fiscal year.

Shares of Tata Consultancy Services Limited was last trading in BSE at Rs. 2069.05 as compared to the previous close of Rs. 2047.75. The total number of shares traded during the day was 459346 in over 24616 trades.

The stock hit an intraday high of Rs. 2132.00 and intraday low of 2064.80. The net turnover during the day was Rs. 960665643.00.