Tata Consultancy Services (TCS) posted a 6% YoY rise in net profit to ₹12,760 crore in Q1 FY26, with revenue growth muted and mixed signals on demand—here’s a detailed breakdown of the TCS Q1 FY26 results.
🧩 TCS Q1 FY26 Result – Summary & Insights
The latest TCS Q1 FY26 results provide key insights into this quarter’s performance.
TCS kicked off its FY26 reporting with mixed vibes. Let’s unpack the key metrics and what they mean:
📉 1. Revenue & Profit
- Revenue: ₹63,437 cr, up 1.3% YoY; declined 3.1% in constant currency due to weak client spend mint+5The Economic Times+5The Economic Times+5The Times of India+9Reuters+9The Economic Times+9.
- Net Profit (PAT): ₹12,760 cr, a healthy 6% rise YoY (₹12,040 cr last year), beating analyst expectations (~₹12,205 cr) mint+8The Economic Times+8The Economic Times+8.
📌 Key takeaway: Margin gainers and cost control offset slow revenue growth.
📊 2. Margins & Cash Flow
- Operating Margin: 24.5%, up 30 bps QoQ Financial Express+4Moneycontrol+4The Economic Times+4.
- Net Margin: 20.1%, rising ~90 bps YoY TCS+11TCS+11TCS+11.
- Cash from operations: ₹12,804 cr, ~100% of net income The Economic Times+1The Economic Times+1.
Strong margins and cash flow underscore operational efficiency.
🧾 3. Dividend & Shareholder Return
- Interim Dividend: ₹11/share; record date July 16, payout on August 4 The Economic Times+6The Economic Times+6Business Standard+6.
- This marks TCS’s commitment to rewarding investors consistently.
👥 4. Workforce & Attrition
- Total Employees: ~613,069, with net addition of ~6,071 YoY Reuters+15The Economic Times+15The Economic Times+15.
- Attrition Rate: 13.8% (LTM), up slightly from 13.3% last quarter .
Human capital remains a focus amid hiring pressures.
🔍 5. Management Commentary
- CEO K Krithivasan: Highlighted demand caution and geopolitical uncertainty, but noted strong deal closures and traction in newer services like AI and cloud Reuters+4The Economic Times+4The Economic Times+4.
- CFO Samir Seksaria: Emphasized sustained investments in long-term growth and improved margins via cost control The Economic Times+1mint+1.
🌐 6. Market & Analyst Reaction
- TCS share price dropped ~2–2.4%—markets were underwhelmed by tepid revenue and growth outlook .
- Analysts caution: macro uncertainties, US tariffs, and slowed client spending may pressure IT names Reuters+1Reuters+1.
✅ Final Take
| Point | Insight |
|---|---|
| Profit Beat | +6% YoY PAT, margin improvement thanks to cost discipline |
| Revenue Concern | Just +1.3%, with CC decline; demand remains soft |
| Outlook | Resilient, but macro headwinds linger; AI-led growth is a bright spot |
| Investor Action | Consider if margin strength offsets lower growth expectations |
