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Informist, Thursday, Jul. 9, 2026

 

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--TCS Apr-Jun consol net profit INR 133.49 bln 
--Analysts saw TCS Apr-Jun consol net profit at INR 134.03 bln 
--TCS Apr-Jun consol revenue INR 722.75 bln 
--Analysts saw TCS Apr-Jun consol revenue at INR 718.05 bln 
--TCS Apr-Jun consol net profit INR 133.49 bln vs INR 137.18 bln qtr ago 
--TCS Apr-Jun consol revenue INR 722.75 bln vs INR 706.98 bln qtr ago 
--TCS to pay INR 12 per share interim dividend 
--TCS interim dividend record date Jul 15 
--TCS Apr-Jun net profit includes one-time cost INR 6.68 bln 
--TCS Apr-Jun one-time cost INR 6.68 bln is for legal claim 
--TCS Apr-Jun profit excluding exceptional items INR 140.17 bln 
--TCS Apr-Jun consol operating margin 24% 
--TCS Apr-Jun order book total contract value $9.5 bln 
--TCS IT services trailing 12-month attrition 13.6% 
--TCS Apr-Jun BFSI segment revenue up 1.6% on qtr in constant currency 
--TCS Apr-Jun consumer ops sales down 4% on qtr in constant currency 
--TCS Apr-Jun life sciences, health sales dn 1% on qtr in constant currency 
--TCS: Made one-time provisions Q1 towards claims by Computer Sciences Corp 
--TCS Apr-Jun manufacturing sales down 0.5% on qtr in constant currency 
--TCS Q1 annualised AI revenue $2.6 bln, up 13.6% on quarter 
--TCS Apr-Jun tech, svcs sales up 1.7% on qtr in constant currency 
--TCS Apr-Jun communication, media sales up 0.3% on qtr in constant currency 
--TCS Q1 energy, resources, utilities sales dn 0.7% QoQ in constant currency 
--TCS total employee count on Jun 30 is 593,798 
--TCS Apr-Jun regional mkts, others sales up 4% QoQ in constant currency 
--TCS Apr-Jun consol operating margin 24% vs 25.3% qtr ago 
--TCS Apr-Jun consol revenue up 0.4% on qtr in constant currency 
--TCS Apr-Jun consol revenue up 3.2% on year in constant currency 
--TCS Apr-Jun consol BFSI revenue INR 279.90 bln vs INR 270.21 bln qtr ago 
--TCS Apr-Jun consol mfg revenue INR 71.10 bln vs INR 70.02 bln qtr ago 
--TCS Apr-Jun consol consumer sales INR 111.46 bln vs INR 113.45 bln qtr ago 
--TCS Q1 consol communication, media, tech sale INR 106.1 bln vs INR 103.3 bln 
--TCS Q1 consol life, health sales INR 74.29 bln vs INR 73.71 bln qtr ago 
--TCS Apr-Jun North America sales down 0.4% on qtr in constant currency 
--TCS Apr-Jun UK revenue up 0.3% on qtr in constant currency 
--TCS clients with 12-mo revenue above $100 mln at 66, unchanged on qtr 
--TCS Q1 continental Europe revenue down 0.2% on qtr in constant currency 
--TCS Apr-Jun revenue from Asia Pacific up 1.4% on qtr in constant currency 
--TCS Apr-Jun revenue from India up 7.6% on qtr in constant currency 
--TCS COO: We won multiple AI-led transformation deals in Apr-Jun 
--TCS CFO: We rolled out annual wage hikes in Apr-Jun 
--TCS Q1 consol employee expense INR 421.37 bln vs INR 401.43 bln qtr ago 
--TCS: Signed $800-mln mega deal with SKF in Apr-Jun 
--TCS: Signed multi-mln dollar pact with ServiceNow in Apr-Jun 
--TCS: Signed multi-mln dollar deal with Europe-based Fortune Global 50 co Q1
 

 

By Shakshi Jain

 

NEW DELHI – Information technology services major Tata Consultancy Services Ltd. Thursday posted a moderate sequential decline in its net profit for the June quarter as total expenses rose faster than the revenue for the three months. The bottom line was partly dragged down by a one-time charge associated with settlement of a legal claim. The sector bellwether's bottom line fell short of analysts' consensus estimate for the quarter and reverted to a sequential decline after a sharp rise in the trailing quarter. The company's revenue, however, managed to beat the Street's view by a comfortable margin, growing sequentially for the fourth consecutive quarter.

 

TCS' consolidated net profit for the June quarter fell 2.7% sequentially but rose 4.6% on year to INR 133.49 billion. The company reported a one-time cost of INR 6.68 billion for the quarter associated with settlement of a legal claim. As disclosed last month, this one-time charge stemmed from an incremental provision towards damages, interest, and legal costs tied to the lawsuit by DXC Technology predecessor Computer Sciences Corp. TCS has already set aside $150 million for this in the past.

 

In the absence of this one-time item, the company's net profit would been INR 140.17 billion, the change in tax notwithstanding. Analysts' consensus estimate had pegged the company's bottom line for the quarter at INR 134.03 billion.

 

The large-cap player's consolidated revenue rose 2.2% sequentially and almost 14% on year to INR 722.75 billion for the June quarter. Analysts had expected the company to post a top line of INR 718.05 billion for the quarter.  

 

TCS recorded annualised artificial intelligence revenue of $2.6 billion for the three months, up 13.6% quarter-on-quarter. In cosntant currency terms, the company's consolidated revenue grew 0.4% sequentially and 3.2% on year for the quarter. This was in line with the expectations of analysts, who had projected flat revenues for the reporting quarter on a sequential basis.

 

The Tata-group company reported a total contract value of $9.5 billion for the reporting quarter, once again in line with the Street's expectations. In the June quarter, TCS signed a $800-million AI-led business transformation deal with Swedish industrial manufacturer SKF. Among other highlights, the company signed multi-million dollar deals with ServiceNow a Europe-based Fortune Global 50 firm.

 

The Mumbai-based IT company's total expenses for the reporting quarter increased 4% sequentially to INR 552.31 billion. Among the top expense items, employee benefit costs rose almost 5% sequentially to INR 421.37 billion and other expenses were up 4% quarter-on-quarter at INR 102.28 billion.

 

"In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industryleading profitability and return ratios," Chief Financial Officer Samir Seksaria was quoted as saying in a press release.  

 

Chief Operating Officer Aarthi Subramanian said TCS won multiple AI-led transformation deals in Apr-Jun and signed strategic partnerships with Anthropic and Mistral to expand the company's AI ecosystem.

 

SEGMENTS, MARKETS

Barring the consumer business segment, TCS recorded broad-based sequential revenue growth during the June quarter. The IT services firm's consolidated revenue from the core banking, financial services, and insurance segment added up to INR 279.90 billion for the reporting quarter, up from INR 270.21 billion in the March quarter. In constant currency terms, the segment revenue grew 1.6% sequentially and 2.4% on year.

 

The manufacturing segment of the company recorded consolidated revenue of INR 71.10 billion for Apr-Jun, up from INR 70.02 billion in the trailing quarter. Constant currency revenue of the segment, however, fell 0.5% on quarter. On a year-on-year basis, the metric registered nearly 3% growth. 

 

The life sciences and healthcare segment recorded consolidated revenue of INR 74.29 billion in the June quarter, up from INR 73.71 billion in the March quarter. In constant currency terms, the metric was down 1% sequentially but up 3.5% on year. The communications, media, and technology segment contributed INR 106.14 billion in the June quarter, up from INR 103.34 billion in the preceeding quarter.

 

Meanwhile, contribution from the consumer business segment fell to INR 111.46 billion from INR 113.45 billion in the previous quarter. In constant currency terms, sales in this segment fell 4% sequentially and 1.2% on year.

 

Constant currency revenue from the energy, resources, and utilities vertical fell 0.7% sequentially but rose almost 7% on year in Apr-Jun, and that from the "regional markets and others" category increased 4% on quarter and 9% on year.  

 

Constant currency revenue from the communication and media vertical grew 0.3% sequentially and 1.4% on year, and that from the technology and services category was up 1.7% sequentially and 3.5% on year in Apr-Jun. 

 

In terms of markets, India was the frontrunner in the June quarter, with sequential constant currency revenue growth of 7.6%, followed by Asia Pacific at 1.4%, Latin America at 0.6%%, and the UK with a 0.3% bump-up. On the other hand, the North America market recorded a sequential fall of 0.4% in revenue in constant currency terms and Continenetal Europe saw a 0.2?cline.

 

TCS reported a consolidated operating profit margin of 24% for the June quarter, down 130 basis points on a sequential basis. The number of clients contributing over $100 million in services revenue over last 12 months remained unchanged sequentially at 66 for the June quarter.

 

The IT services player net added 9,279 employees during the quarter to take its overall headcount to 593,798 as of Jun. 30. The 12-month attrition rate in IT services fell to 13.6% from 13.7% a quarter ago, as per a fact sheet released by the company.

 

The company's board has declared interim dividend of INR 12 per share, the record date for which is Jul. 15. The dividend will be paid on Jul. 31.

 

TCS detailed its June quarter results post market hours. Shares of the company ended 0.4% lower at INR 2,049.50 on the National Stock Exchange on Thursday. Its post-earnings conference call with investors is scheduled at 1900 IST. Investors will watch out for the management's commentary on demand and deal pipeline, progress on planned data centre investments, timeline for convergence of growth with peers and key drivers, strategic priorities for inorganic investments, and synergy benefits from the integration of acquired firms Coastal Cloud Holdings, LLC. and ListEngage, LLC.  End

 

US$1 = INR 95.39

 

Edited by Avishek Dutta

 

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