TCS profit rose 6% in Q1 amid global woes

Quarterly revenue grew slowest since pandemic

- SHIVANI SHINDE

The first-quarter performance of India's largest IT services provider, Tata Consultancy Services (TCS), continued to reflect the impact of macroeconomic uncertainty and slow discretionary spending.

The company's management remained optimistic overall, but admitted that high single-digit growth in FY26 looks tough.

TCS reported a net profit of ₹12,760 crore for the first quarter of FY26, up 6 per cent compared to ₹12,040 crore in the same period of FY25.

Revenue grew 1.3 per cent year-on-year (Y-o-Y) in reported terms to ₹63,437 crore in Q1FY26. However, in constant currency terms, revenue declined 3.1 per cent Y-o-Y. Sequentially, the company's revenue was down by 1.6 per cent, the slowest quarterly growth since Q1FY21, when revenue fell 4 per cent quarter-on-quarter due to the Covid-19 pandemic. Prior to that, TCS had reported a sequential revenue decline of 0.2 per cent in Q1FY18.

TCS missed Bloomberg consensus estimates on revenue but beat expectations on net profit. Bloomberg had projected revenue of ₹64,655 crore and net profit of ₹12,253 crore. As TCS's performance typically sets the tone for the Indian IT sector, the revenue miss may weigh down on the sentiment. American Depositary Receipts (ADRs) of Infosys and Wipro fell as much as 4.5 per cent on Thursday following TCS's Q1 results.