On a year-on-year basis, the company's consolidated net profit increased 4.6%, while revenue from operations rose 13.9%.
Profit before exceptional items and tax rose 1.36% to Rs 18,612 crore in Q1 FY27 from Rs 18,362 crore recorded in Q4 FY26. The company also reported exceptional items worth Rs 668 crore during the period, primarily due to additional provisions towards the settlement of a legal claim filed by Computer Sciences Corporation (CSC), following the denial of the company's petition by the US Supreme Court. The provision relates to exemplary damages and costs awarded in the matter.
The company's operating margin stood at 24%, while net margin was 19.2% during the quarter.
The company's total contract value (TCV) declined to $9.5 billion in Q1 FY27 from $12 billion in Q4 FY26.
The company's annualised AI revenue reached $2.6 billion during the quarter, up 13.6% sequentially.
The workforce stood at 593,798 employees as of 30 June 2026, while the last twelve months (LTM) attrition rate in IT Services was 13.6%.
As of 30 June 2026, TCS had filed 9,803 patent applications, including 207 during the quarter, and had been granted 5,670 patents, of which 170 were awarded in Q1 FY27. Its AI-focused portfolio comprised 1,996 cumulative patent filings and 602 granted patents.
K Krithivasan, chief executive officer and managing director, said 'Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds. 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. As customers accelerate investments in AI, modernization, 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'.
Aarthi Subramanian, executive director - president and chief operating officer, said 'Q1 was characterized 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. 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'.
Samir Seksaria, chief financial officer, said, 'In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industryleading profitability and return ratios'.
Sudeep Kunnumal, chief HR officer, said 'This quarter, we completed annual salary increments for all associates globally and aligned salary structures with the new India Labour Code requirements. We continue to invest in AI infrastructure, next-generation skill development platforms, to enable our people to be futureready, while fostering a workplace where every associate feels safe, valued, trusted and empowered to grow'.
Meanwhile, the board of directors declared an interim dividend of Rs 12 per equity share of Re 1 each. The record date for determining eligible shareholders is 15 July 2026 and the dividend will be paid on 31 July 2026.
TCS is a digital transformation and technology partner of choice for industry-leading organizations worldwide.
The scrip shed 0.52% to end at Rs 2,047.75 on the BSE.
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