Newsletter
TCS officially kicked off Q1 earnings season and delivered numbers that met street expectations despite a challenging global environment.
By the numbers:
Net profit: down 2.7% QoQ at ₹13,349 cr vs ₹13,718 cr
₹ revenue: up 2.2% QoQ at ₹72,275 cr vs ₹70,698 cr
EBIT: down 3% QoQ at ₹17,317 cr vs ₹17,870 cr
EBIT margin: at 24% vs 25.3% (QoQ)
Breaking it down: to get a clearer picture of its actual business growth, TCS' revenue rose 0.4% after excluding currency fluctuations.
AI continues to be the company's biggest growth engine. TCS reported annualised AI revenue of $2.6 billion, up 13.6% from the previous quarter.
The company also announced several major AI-led transformation deals during the quarter, including an $800 million contract with global engineering giant SKF, along with another multi-million-dollar deal with a Europe-based Fortune Global 50 company.
TCS secured $9.5 billion worth of new deals during the quarter. While that's a healthy pipeline, it was lower than the previous quarter's total.
Meanwhile, the company ended the quarter with nearly 5.94 lakh employees, while attrition in its IT services business remained steady at 13.6%.
Hiring is making a comeback too. After slashing over 30,000 jobs across Q2 and Q3 of FY26, TCS added nearly 9,300 employees in Q1 FY27, its biggest quarterly headcount addition in almost four years.
Management commentary: CEO and MD K Krithivasan said demand for AI, cloud modernisation, cybersecurity and platform simplification continues to remain strong. According to him, improving deal wins, deeper relationships with existing clients and expanding partnerships put TCS in a strong position for the quarters ahead.
