TCS Q1 result: IT giant's net profit rises 6%, board recommends Rs 11/ share dividend
The company's revenue rose to Rs 63,437 crore, higher by 1.3 per cent as against Rs 62,613 crore in the year-ago period. However, TCS' revenue declined 3.1 per cent year-on-year (YoY) in constant currency. The company's operating margin was at 24.5 per cent, an expansion of 30 bps on a quarter-on-quarter basis.
TCS' board also recommended a dividend of Rs 11 per share.
'The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter,' K Krithivasan, managing director and CEO, said. 'We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimisation, vendor consolidation and AI-led business transformation,' he said.
TCS' shares remained subdued at Rs 3,382.30, down 0.06 per cent, on the BSE on Thursday. The share has fallen 26 per cent from the 52-week high level of Rs 4,585.
Aarthi Subramanian, Executive Director-President and COO, said 'Across industries, clients are increasingly shifting their focus from use case-based approach to ROI-led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications.'
TCS' workforce stood at 613,069 as on June 30, 2025. 'Our associates invested 15 million hours and acquired 1.3 million competencies in emerging technologies, enabling them to lead the transformation journey for our customers,' it said.
IT services' attrition was at 13.8 per cent for the last 12 months. 'We continued our investments in long term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry leading profitability alongside robust cash conversion, positions us well to make strategic investments for the future,' Samir Seksaria, chief financial officer, said.
According to TCS, this quarter, the AI and Data unit delivered robust growth, with enterprises advancing from pilots to scaled GenAI deployments. 'Demand was led by AI-led transformation, SDLC/IT-Ops automation, and data-platform modernisation. Our investments in WisdomNext, TCS' flagship AI platform are expanding with the addition of agentic AI capabilities. Strategic partnerships expanded, and our AI workforce with higher order skills exceeded 114,000, strengthening our leadership position in enterprise AI solutions,' it said.
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