Indian IT giant Tata Consultancy Services (TCS) has announced a significant 6% rise in its net profit for the first quarter, reaching Rs 12,760 crore, and has recommended a dividend of Rs 11 per share for its shareholders.
Q1 Financial Highlights
For the quarter ending June 2025, TCS reported a consolidated net profit of Rs 12,760 crore, a notable increase from Rs 12,040 crore in the same period last year. The company’s revenue also saw a modest rise of 1.3%, reaching Rs 63,437 crore.
Despite the overall revenue growth, TCS observed a 3.1% year-on-year decline in constant currency. However, the operating margin showed a positive trend, expanding by 30 basis points quarter-on-quarter to 24.5%.
Leadership’s View on Market Conditions
K Krithivasan, the Managing Director and CEO, acknowledged the impact of global macro-economic and geopolitical uncertainties, which led to a contraction in demand. Despite these challenges, he highlighted strong growth in new services and robust deal closures during the quarter.
Krithivasan emphasized TCS’s commitment to supporting clients through cost optimization, vendor consolidation, and leveraging AI for business transformation, adapting to the dynamic market landscape.
Driving Innovation with AI
Aarthi Subramanian, Executive Director, President, and COO, noted a significant shift in client focus. Businesses are increasingly moving from experimental use cases of AI to large-scale, ROI-driven deployments.
TCS is actively investing across the entire AI ecosystem, including infrastructure, data platforms, AI agents, and business applications. The company’s AI and Data unit reported strong growth, with enterprises moving towards scaled Generative AI implementations. Initiatives like WisdomNext, TCS’s AI platform, are expanding with new agentic AI capabilities, and the AI workforce has grown to over 114,000 skilled professionals.
Workforce and Talent Development
As of June 30, 2025, TCS’s global workforce stood at 613,069 associates. The company has made substantial investments in upskilling its talent, with associates contributing 15 million hours to training and acquiring 1.3 million competencies in emerging technologies.
The IT services attrition rate over the last 12 months was 13.8%, reflecting the industry’s talent dynamics.
Financial Health and Future Investments
Samir Seksaria, Chief Financial Officer, reiterated the company’s commitment to long-term sustainable growth. He highlighted TCS’s ability to maintain steady margins and convert cash effectively, which positions the company well for strategic future investments.
Share Performance
Following the results, TCS shares closed slightly down by 0.06% at Rs 3,382.30 on the BSE. The stock has seen a 26% decline from its 52-week high of Rs 4,585.
- TCS reported a 6% increase in Q1 net profit to Rs 12,760 crore.
- A dividend of Rs 11 per share has been recommended by the board.
- The company is making significant investments in AI and saw strong growth in its AI and Data unit.
- Despite global uncertainties, leadership notes robust deal closures and a focus on customer support.
TCS continues to navigate a challenging global environment by focusing on strategic investments, talent development, and delivering value through advanced technologies like AI.
