Tata Consultancy Services Earnings Summary — Q1 FY2027
TCS Reports Steady Revenue Growth Amid Sequential Profit Compression in Q1 FY2027
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹72,275 Cr is 13.9% higher year-on-year.
- Revenue has compounded at 7.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹13,349 Cr is 4.6% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 3.2% annualised across the period.
- Operating margin stands at 25.7% in Q1 FY2027.
- Operating margin compressed by 93 bps year-on-year.
- Over the last two years operating margin has contracted by 94 bps.
- PBT margin is 24.8%.
- Expenses grew 15.4% against revenue growth of 13.9%.
- Operating profit of ₹18,556 Cr is 10.0% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 69/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 72,275 | 70,698 | 67,087 | 65,799 | 63,437 | 64,479 | 63,973 | 64,259 | 62,613 | 61,237 |
| Expenses | Stable | 53,719 | 51,422 | 48,818 | 47,821 | 46,562 | 47,499 | 46,939 | 47,528 | 45,951 | 44,073 |
| Operating Profit | Stable | 18,556 | 19,276 | 18,269 | 17,978 | 16,875 | 16,980 | 17,034 | 16,731 | 16,662 | 17,164 |
| Operating Margin | Stable | 25.7% | 27.3% | 27.2% | 27.3% | 26.6% | 26.3% | 26.6% | 26.0% | 26.6% | 28.0% |
| Other Income | Volatile | 900 | 757 | -2,273 | -268 | 1,660 | 1,028 | 1,243 | 729 | 962 | 1,157 |
| Interest | Volatile | 273 | 265 | 538 | 229 | 195 | 227 | 234 | 162 | 173 | 226 |
| Depreciation | Stable | 1,239 | 1,406 | 1,380 | 1,413 | 1,361 | 1,379 | 1,377 | 1,266 | 1,220 | 1,246 |
| Profit Before Tax | Stable | 17,944 | 18,362 | 14,078 | 16,068 | 16,979 | 16,402 | 16,666 | 16,032 | 16,231 | 16,849 |
| Tax | Stable | 4,524 | 4,578 | 3,358 | 3,937 | 4,160 | 4,109 | 4,222 | 4,077 | 4,126 | 4,347 |
| Net Profit | Stable | 13,349 | 13,718 | 10,657 | 12,075 | 12,760 | 12,224 | 12,380 | 11,909 | 12,040 | 12,434 |
| Net Margin | Stable | 18.5% | 19.4% | 15.9% | 18.4% | 20.1% | 19.0% | 19.4% | 18.5% | 19.2% | 20.3% |
Key Takeaways
- Revenue grew 15.43% year-over-year to ₹72,275 crore, maintaining steady top-line momentum.
- Net profit saw a sequential decline of 2.64% from ₹13,784 crore in the preceding quarter.
- Operating margins contracted to 26%, down from 27% in both the prior quarter and the same period last year.
- Expenses increased to ₹53,719 crore, a 4.46% jump from the previous quarter, impacting overall profitability.
- The Board declared an interim dividend of ₹12.00 per share with a record date of July 15, 2026.
- Total comprehensive income remains robust, though other income of ₹900 crore is slightly higher than the previous quarter's ₹757 crore.
Management Guidance
Management remains focused on navigating the current demand environment, emphasizing the delivery of interim shareholder returns through consistent dividends.
Sentiment Shift
Stable
While revenue continues to scale, margin pressure and sequential profit dips suggest a period of consolidation despite healthy year-over-year growth.
Outlook
The company continues to report growth in its consolidated global operations, though near-term margin management will be critical following the slight decline in OPM % to 26%.
From the Annual Report (Key Quotes)
“The Statement gives a true and fair view in conformity with the applicable accounting standards.”
“Directors have declared an interim dividend of INR 12 per Equity Share of INR 1 each of the Company.”
“Group for the quarter ended 30 June 2026 shows a consolidated total comprehensive income.”
Official Quarterly Documents
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This summary is AI-generated from Tata Consultancy Services's latest quarterly filing and earnings call. For informational purposes only — not investment advice.