Tata Consultancy Services Ltd. (TCS), India’s largest IT services company, reported its financial results for the April–June quarter (Q1FY26) after market hours on Thursday. The company’s net profit and margins came in above expectations, while revenue growth slightly missed estimates, and EBIT remained flat sequentially.

TCS posted a net profit of Rs 12,760 crore, up 6.0 per cent year-on-year, supported by strong operational efficiency and cost control. Revenue stood at Rs 63,437 crore, growing 1.3 per cent year-on-year, but declining 3.1 per cent in constant currency (CC) terms due to macroeconomic softness.

Earnings Before Interest and Tax (EBIT) was stable on a quarter-on-quarter basis, highlighting the company’s operational resilience despite weak demand trends.

“We delivered robust deal closures and maintained profitability despite a soft demand environment,” said K Krithivasan, CEO & MD. “We continue to support clients with cost optimization, vendor consolidation, and AI-driven transformation.”

Key Q1FY26 Highlights:

Net Profit: Rs 12,760 crore (up 6.0 per cent YoY)

Revenue: Rs 63,437 crore (up 1.3 per cent YoY; down 3.1 per cent in CC)

Operating Margin: 24.5 per cent (up 30 bps QoQ)

Net Margin: 20.1 per cent (up 90 bps YoY)

EBIT: Flat QoQ

Total Contract Value (TCV): USD 9.4 billion

TCS ended the quarter with a headcount of 6,13,069, registering a net addition of 6,071 employees year-on-year. The LTM IT services attrition rate improved to 13.8 per cent, reflecting better workforce stability. Net cash from operations stood at Rs 12,804 crore, or 100.3 per cent of net income.

Sector-wise, BFSI and Technology & Services showed modest growth of 1.0 and 1.8 per cent in CC, while segments like Life Sciences, Manufacturing, and Communications witnessed declines. Regionally, India revenue fell sharply by 21.7 per cent, even as Middle East & Africa and Asia Pacific grew 9.4 and 3.6 per cent, respectively.