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TCS Q1FY26 profit grows 6% to ₹12,040 cr, revenue at ₹63,437 cr

| @indiablooms | Jul 10, 2025, at 11:37 pm

Mumbai: Tata Consultancy Services (TCS) reported a net profit of ₹12,760 crore for the quarter ended June 30, 2025, up 6% from ₹12,040 crore in the corresponding period last year.

TCS declared an interim dividend of Rs 11 per share of Re 1 face value each. "The interim dividend shall be paid on Monday, August 4, 2025, to the equity shareholders of the Company," it said in a stock exchange filing.

The firm set July 16, 2025 as the record date to note the beneficiaries for the dividend payout.

Revenue for the quarter stood at ₹63,437 crore, up 1.3% from ₹62,613 crore a year earlier.

Employee costs rose to ₹37,715 crore in Q1 FY26 from ₹36,416 crore in the same quarter of FY25.

Costs related to equipment and software licences dropped significantly to ₹726 crore, compared to ₹2,151 crore last year. Other operating expenses increased to ₹8,121 crore, up from ₹7,384 crore, while depreciation expenses rose to ₹1,361 crore from ₹1,220 crore.

Total expenditure during the quarter amounted to ₹47,923 crore, compared to ₹47,171 crore in Q1 FY25.

Profit before taxes and other income was reported at ₹15,514 crore, marginally higher than ₹15,442 crore in the year-ago quarter. Including other income of ₹1,465 crore — nearly doubling from ₹789 crore last year — profit before taxes rose to ₹16,979 crore, up from ₹16,231 crore.

Provision for taxes stood at ₹4,160 crore, slightly higher than ₹4,126 crore in the previous year. Profit after tax and before non-controlling interests came in at ₹12,819 crore, compared to ₹12,105 crore in Q1 FY25.

After accounting for non-controlling interests, the net profit stood at ₹12,760 crore, up from ₹12,040 crore in the same quarter last year.

Earnings per share increased to ₹35.27 in Q1 FY26, from ₹33.28 in Q1 FY25.

Q1 Total Contract Value (TCV) stood at US$9.4 billion.

K Krithivasan, Chief Executive Officer and Managing Director, said: "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."

Samir Seksaria, Chief Financial Officer, said: "We continued our investments in long term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins."

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