Tata Consultancy Services (TCS), India’s largest IT services firm, reported a 6% year-on-year increase in net profit for the April–June quarter of FY26, reaching ₹12,760 crore compared to ₹12,040 crore in the same period last year. Despite the uptick in profitability, the company faced macroeconomic and geopolitical uncertainties, which CEO K Krithivasan said led to demand contraction across several verticals.
Mixed Revenue Performance TCS’s revenue rose marginally by 1.3% to ₹63,437 crore, though it declined 3.1% in constant currency terms, reflecting pressure in key sectors like Life Sciences & Healthcare and Communication & Media. However, pockets of resilience were seen in BFSI, Technology & Services, and Energy & Utilities. The company’s operating margin improaczved by 30 basis points, reaching 24.5%, and it generated ₹12,804 crore in net cash from operations, equivalent to 100.3% of its net income.
Strategic Focus on AI and Cloud TCS continued its pivot toward AI-led business transformation, launching platforms like TCS SovereignSecure™ Cloud, DigiBOLTTM, and Cyber Defence Suite. The company also strengthened its partnership with Microsoft to develop new AI and cloud solutions, reflecting a shift in client focus from use-case experimentation to ROI-driven scaling of AI.
Workforce and Dividend Update The company added 6,071 employees, bringing its total headcount to 6,13,069, while attrition declined to 13.8%. TCS declared an interim dividend of ₹11 per share, with a record date of July 16, 2025, and payout scheduled for August 4, 2025.
Despite global challenges, TCS remains committed to long-term growth, cost optimization, and digital innovation—positioning itself as a resilient leader in the evolving tech landscape.