Tata Consultancy Services (TCS), the largest IT services company in India, has given the first quarter of FY2027 financial results and said net profit dropped by about 3% sequentially in part due to a one-time legal settlement. However, the company did get a better-than-expected revenue growth, driven by good demand from the Banking, Financial Services and Insurance (BFSI) sector and continued growth of artificial intelligence (AI) business.
TCS had a consolidated net profit of ₹13,349 crore in the quarter ended June 2026, a decrease of ₹13,349 crore as compared to last quarter, an exceptional charge of about 5% year-on-year earnings in the first quarter compared to the previous quarter as a result of a legal action for an intellectual property lawsuit settlement on a continuing trial related to the settlement of an intellectual property lawsuit. However, as a percentage of the company’s profit was essentially flat quarter on-year, TCS added 1.7% year on-year, the company’s profit increased by nearly 5% on a year-on-year basis, which proves TCS’s performance against the market uncertainty with a strong performance in general and despite the uncertainty of the macroeconomic environment.
The company reported revenue of ₹72,275 crore, which is in line with the market expectations and above market consensus. It was encouraged by technology spending by global banking and financial customers who spend money on technology and financial clients, and the weaker Indian rupee also helped to drive the revenues. The BFSI vertical, which is still TCS’s largest business segment, showed good growth in the quarter.
TCS also spoke to continued progress in AI. The company said annualised AI-related revenue continued to expand as enterprises intensified investments in generative AI, cloud modernization, and digital transformation programs. AI-led projects were also increasingly becoming part of client engagements across the industries, management said.
The IT giant reported a total contract value (TCV) of around $9.5 billion in the third quarter, and a strong order pipeline despite the global economic uncertainty in place and the continuing global economic uncertainty. TCS scored many large deals across industries and it has a solid outlook for digital transformation and technology outsourcing services to come and stay high and strong.
Along with quarterly results, the company’s board also declared an interim dividend of ₹12 per equity share and rewarded shareholders with another dividend as part of the company's dividend policy. TCS is one of the most shareholder-friendly companies in India and announces dividends very regularly, and the quarterly results are also released.
So investors will now closely monitor management's outlook for the rest of FY2027, especially on discretionary technology spending, client demand in North America and Europe, AI adoption, hiring trends, and operating margins. TCS’s earnings and the results are also expected to set the tone for other major Indian IT companies such as Infosys, HCLTech, Wipro, and Tech Mahindra.
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