TCS Q1 profit rises 5pc to ₹13,349 crore; AI deals drive $9.5-billion order book

THEBUSINESSBYTES BUREAU

MUMBAI, JULY 9, 2026

Tata Consultancy Services (TCS) on Thursday reported a 5 per cent year-on-year (YoY) rise in consolidated net profit to ₹13,349 crore for the quarter ended June 2026, as robust deal wins and accelerating demand for artificial intelligence (AI)-led services supported growth.

The country's largest IT services company posted 14 per cent growth in revenue to ₹72,275 crore during the quarter. According to the company's official earnings statement, revenue increased 2.2 per cent sequentially in rupee terms and 0.4 per cent in constant currency, while the operating margin stood at 24 per cent and net margin at 19.2 per cent.

Net cash generated from operations came in at ₹12,412 crore, representing 93 per cent of net income, reflecting healthy cash generation during the quarter.

The company reported a total contract value (TCV) of $9.5 billion during the quarter, led by a series of AI-driven transformation engagements. These included an $800 million enterprise transformation programme with industrial manufacturer SKF, a multi-million-dollar strategic partnership with ServiceNow and another multi-million-dollar contract with a Europe-based Fortune Global 50 company.

Highlighting the growing contribution of AI to its business, TCS said its annualised AI revenue run rate reached $2.6 billion in the first quarter, a 13.6 per cent sequential increase, driven by demand for AI-led services across IT operations, software engineering, enterprise modernisation and autonomous business services.

The company also expanded its AI ecosystem through strategic partnerships with Anthropic and Mistral. As part of the Anthropic collaboration, TCS will establish a dedicated business unit and provide enterprise-wide access to Claude for 50,000 associates. It also became the first global systems integrator partner for Mistral Forge.

The company's board approved an interim dividend of ₹12 per share for FY27. The record date has been fixed as July 15, while the dividend will be paid on July 31, TCS said.