TCS Posts Steady Q1 Growth, Secures Major AI-Led Contracts Worth $9.5 Billion

India's largest IT services company, Tata Consultancy Services (TCS), kicked off the financial year on a strong footing, reporting a 4.61 per cent rise in consolidated net profit to Rs 13,349 crore for the quarter ended June 2026. Excluding exceptional items, the company's profit grew 8.5 per cent year-on-year to Rs 13,849 crore .

The company also posted robust revenue growth, with Q1 revenue increasing nearly 14 per cent year-on-year to Rs 72,275 crore . Sequentially, revenue rose 2.23 per cent from Rs 70,698 crore in the March quarter, reflecting continued demand for technology services despite a challenging global environment.

A major highlight of the quarter was TCS's strong order book. The company secured new deals worth $9.5 billion in total contract value (TCV), including an $800 million AI-led transformation mega deal with SKF. TCS also reported annualised AI revenue of $2.6 billion , which grew 13.6 per cent quarter-on-quarter, underlining the rapid adoption of artificial intelligence solutions by enterprises worldwide.

Chief Executive Officer and Managing Director K Krithivasan said the results demonstrate the company's growth momentum and strategic strength even amid geopolitical and macroeconomic uncertainties. He noted that clients are increasingly investing in AI, cybersecurity, cloud infrastructure, platform simplification and modernisation initiatives, creating significant opportunities for TCS.

The company further expanded its AI ecosystem through strategic partnerships with Anthropic and Mistral , according to Chief Operating Officer Aarthi Subramanian .

TCS's workforce continued to grow during the quarter, with the company adding more than 9,200 employees , taking its total headcount to 5,93,798 as of June 30. Attrition in the IT services business stood at 13.6 per cent .

While the operating profit margin moderated to 24 per cent from 25.3 per cent in the previous quarter due to wage hikes and fresh investments, the company maintained that it will continue investing in AI infrastructure and workforce upskilling to prepare employees for future technologies.

Sector-wise, most business segments recorded year-on-year growth, while geographically, revenues from Latin America and the UK declined. TCS also saw a sharp rebound in its India business , where revenue surged 22.9 per cent year-on-year following the completion of earlier large telecom projects.

Despite the strong quarterly performance, TCS shares closed 0.52 per cent lower at Rs 2,047.75 on the BSE, even as the benchmark index ended higher. Overall, the results indicate that TCS is navigating industry-wide concerns over AI disruption with a growing deal pipeline, expanding partnerships and sustained investment in future-ready capabilities.