TCS reports 8.5% rise in net profit for Q1FY27

3 min readJul 9, 2026 07:16 PM IST

TCS shares declined by 0.52% at Rs 2,047.75 on the BSE on Friday.

Tata Consultancy Services (TCS), India’s largest software services exporter, on Thursday reported an 8.5% on-year rise in net profit to Rs 13,849 crore for the first quarter of the financial year 2027 (Q3FY27).

It had reported a profit of Rs 12,760 crore in the first quarter of FY26.

The net profit, attributable to the shareholders of the company, was down by 2.68% from Rs 13,718 crore in March 2026 and a rise of 4.61% from Rs 12,760 crore in June 2025. It incurred an expenditure of Rs 668 crore due to settlement of a legal claim.

Revenue for Q1FY27 rose by 13.9% to Rs 72,275 crore as against Rs 63,437 crore a year ago period.

The board of the company declared a dividend of Rs 12 per share.

The company posted a net margin of 19.2%.

TCS shares declined by 0.52% at Rs 2,047.75 on the BSE on Friday.

TCS shares have fallen by 40% from the 52-week high of Rs 3416.60 on July 9, 2025 amid the slowdown in global IT spending, West Asia conflict and the disruption caused by the AI developments.

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“Q1FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds,” K Krithivasan, Chief Executive Officer and Managing Director, said.

“We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualized revenue run rate,” he said.

“As customers accelerate investments in AI, modernisation, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth,” Krithivasan said.

Aarthi Subramanian, Executive Director – President and Chief Operating Officer, said “Q1 was characterised by strong growth across several services. We won multiple AI-led transformation deals with our dual commitment to AI-led optimization as well as innovation-led outcomes.”

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“These wins validate our approach to AI-led efficient ITOps, accelerated Software Engineering and Modernization, AI-first process redesign and implementation of SaaS solutions and Autonomous GBS. We signed strategic partnerships with Anthropic and Mistral expanding our AI ecosystem,” Subramanian said.

In April 2019, Computer Sciences Corporation (CSC) filed a legal claim against TCS in the Court of Northern District of Texas and Dallas Division (trial court) alleging misappropriation of trade secrets and other CSC’s confidential information and sought preliminary and permanent injunctive relief, and unspecified monetary damages and disgorgement of profits.

The company had provided $150 million (Rs 1,352 crore) towards the legal claim in the standalone statement of profit and loss for the year ended March 31, 2026 and disclosed $112 million (Rs 1,010 crore) as provision towards legal claim under exceptional items and $38 million (Rs 342 crore) under other interest costs.

Pursuant to the denial of the company’s petition by the Supreme Court, the company has provided for a further amount of $70 million (Rs 668 crore) towards exemplary damages and costs awarded to CSC.