TCS Q1 revenue rises 14% to Rs 72,275 crore; declares Rs 12 interim dividend

New Delhi: Tata Consultancy Services (TCS), India's largest IT services exporter, on Thursday reported a 14 per cent year-on-year rise in consolidated revenue for the first quarter of FY27, aided by robust demand from banking clients, a weaker rupee and continued momentum in artificial intelligence (AI) services. The company posted revenue of Rs 72,275 crore for the April-June quarter, higher than Street estimates of Rs 72,030 crore, according to LSEG data. Consolidated net profit rose 4.6 per cent to Rs 13,349 crore, despite a one-time charge of about Rs 668 crore towards the settlement of an intellectual property theft case involving DXC Technology. The board also declared an interim dividend of Rs 12 per equity share of Re 1 face value. The record date has been fixed as July 15, and the dividend will be paid on or after August 3, 2026, to eligible shareholders. BFSI remains the growth engine The Banking, Financial Services and Insurance (BFSI) vertical, which contributes nearly one-third of TCS' revenue, grew 2.4 per cent during the quarter. The company said the segment continued to benefit from two mega contracts worth over Rs 9,539 crore each that it secured in FY26, while currency gains from the weaker rupee also supported overall revenue growth. AI business expands further TCS said its annualised AI revenue crossed Rs 24,801 crore during the quarter, compared with Rs 21,939 crore in the preceding quarter, reflecting faster adoption of AI-led transformation programmes across industries. The company has been investing aggressively in generative AI and enterprise AI solutions as global clients step up spending on automation and digital transformation. Order book stays healthy The company reported a total contract value (TCV) of about Rs 90,618 crore during the quarter. While lower than the about Rs 1.14 lakh crore recorded in the previous quarter, it was marginally higher than the about Rs 89,664 crore reported a year earlier. Major deal wins announced during the quarter included contracts with European manufacturing company SKF, Canadian insurer Canada Life and Norwegian packaging company Elopak. TCS became the first major Indian IT company to announce June-quarter earnings, setting the tone for the sector ahead of results from Infosys, HCLTech, Wipro and Tech Mahindra later this month. Investors will closely watch management commentary on discretionary technology spending, AI-led demand, margins and the deal pipeline amid an uncertain global macroeconomic environment. Shares of TCS had closed 0.4 per cent lower ahead of the earnings announcement.