Tuesday, August 5, 2025

TCS Q1 Results: Constant currency revenue drops 3.3%; deal wins at $9.4 billion

Date:

Tata Group IT services provider Tata Consultancy Services Ltd.(TCS) kicked off the Nifty 50 earnings season for the June quarter on Thursday, July 10. TCS reported its first quarter results that were lower than Street estimates on most fronts.TCS’ constant currency (CC) revenue for the first quarter of financial year 2026 declined 3.3% quarter-on-quarter. A CNBC-TV18 poll expected the IT major to report a 1.4% sequential decline in CC revenue growth.

TCS recorded revenue of ₹63,437 crore, which is a decline of 1.6%, in comparison to ₹64,479 crore in the March quarter. A CNBC-TV18 poll had projected the revenue in rupee terms to decline by 0.4% to ₹64,206 crore.

In US Dollar terms, the IT giant’s revenue declines 0.6% quarter-on-quarter as against an estimate of 0.6% growth. TCS recorded revenue of $7,421 million, in comparison to $7,465 million in the previous quarter.Net profit for the quarter stood at ₹12,760 crore. A CNBC-TV18 poll had pegged the figure at ₹12,127 crore. The profit is mainly aided by other income.

Other income stood at 1,660 crore as against 1,028 crore in the fourth quarter of FY25.
For the first quarter, TCS reported earnings before interest and tax (EBIT) of ₹15,514 crore, which is below than expectations of ₹15,623 crore. EBIT margin stood at 24.5% as against CNBC-TV18’s poll of 24.3%.TCS won deals worth $9.4 billion during the June quarter, which is lower than the $12.2 billion TCV that was reported during the fourth quarter of the last financial year.

The company’s headcount has seen an increase on both sequential as well as on a year-on-year basis.

The board of TCS has approved a dividend of ₹11 per share at the end of the June quarter. Record date for the dividend payout has been fixed as Wednesday, July 16.

The dividend will be paid to shareholders on August 4, 2025.

K Krithivasan, Chief Executive Officer and Managing Director of TCS, said the continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew

well. The firm saw robust deal closures during the quarter.

Shares of TCS ended 0.38% higher on Thursday at ₹3,397.30 on BSE. The stock is down nearly 18% so far in 2025.

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