TCS Q1 FY27: 13.9% Revenue Growth, Rs 12 Dividend

TCS Publishes Q1 FY27 Results

The world's largest IT services company by market capitalization, Tata Consultancy Services (TCS), published its Q1 FY27 quarterly results today. Along with the earnings, the board declared an interim dividend of Rs 12 per equity share.

The dividend will be paid on July 31, 2026. The record date is July 15, 2026. The detailed report is available on the TCS Investor Relations page.

TCS is a giant — the group operates through 67 subsidiary companies and 2 trusts worldwide.

Key Financial Highlights

Metric	Q1 FY27 (Jun 2026)	Q4 FY26 (Mar 2026)	Q1 FY26 (Jun 2025)
Revenue	Rs 72,275 Cr	Rs 70,698 Cr	Rs 63,437 Cr
Net Profit (PAT)	Rs 13,420 Cr	Rs 13,784 Cr	Rs 12,819 Cr
EPS (Basic)	Rs 36.90	Rs 37.92	Rs 35.27
Operating Margin	22.7%	24.9%	24.2%
Dividend	Rs 12/share	Rs 31/share (final)	Rs 11/share

TCS Revenue and Profit Trend (Consolidated) — Q1 FY26 to Q1 FY27

Year-over-year, revenue increased 13.9% — from Rs 63,437 Cr to Rs 72,275 Cr. Net profit rose 4.7%, from Rs 12,819 Cr to Rs 13,420 Cr.

Quarter-over-quarter, revenue grew 2.2% from Rs 70,698 Cr. However, PAT declined 2.6% — from Rs 13,784 Cr to Rs 13,420 Cr.

Earnings per share is Rs 36.90 — up 4.6% year-over-year from Rs 35.27, but down 2.7% from Rs 37.92 in the previous quarter.

Segment Revenue Breakdown

Segment	Revenue (Rs Cr)	YoY Growth	Share
BFSI	27,990	+13.2%	38.7%
Consumer Business	11,146	+9.8%	15.4%
Communication, Media & Technology	10,614	+12.5%	14.7%
Life Sciences & Healthcare	7,429	+15.7%	10.3%
Manufacturing	7,110	+11.1%	9.8%
Others	7,986	+27.0%	11.1%

TCS Segment Revenue Breakdown — Q1 FY27

BFSI continues to dominate at 38.7% of total revenue. Life Sciences & Healthcare posted the strongest year-over-year growth at 15.7%.

Stock Price: Near the 52-Week Low

The stock touched its all-time high of Rs 4,554 in August 2024. From that peak, it has declined roughly 55%.

Currently, TCS trades around Rs 2,050 — just 3.7% above its 52-week low of Rs 1,976 and approximately 40% below its 52-week high of Rs 3,400.

Why Did Profit Decline This Quarter?

The company settled a legal claim of Rs 668 Cr this quarter, which is the primary reason for the quarter-over-quarter profit decline. Without this one-time expense, profit before exceptional items actually rose from Rs 18,362 Cr to Rs 18,612 Cr.

Why Are IT Stocks Under Pressure?

This is not a TCS-specific problem. All major IT companies — including Accenture and Cognizant — face the same headwinds:

1. Impact of AI: The software development and services model has changed rapidly over the last five years. Companies like Anthropic and OpenAI are building LLM models and agents that are replacing work previously done by large teams.

2. Lack of AI Innovation Spending: These companies generate high profits but have not invested heavily in building their own AI innovations. They are adopting AI, but they lack meaningful innovation in the AI domain itself.

3. Margin Pressure from AI Competition: As AI models and agents handle higher-value tasks, the traditionally high-margin consulting and development business gets squeezed.

Going forward, AI will likely continue to compress profit margins and shorten project timelines. TCS currently trades at a P/E ratio of around 13, but given the lack of visible growth in the IT services domain, a low P/E alone does not necessarily mean the stock is cheap.

That said, TCS has started investing in AI — including launching the HyperVault AI Data Center subsidiary and acquiring companies like Coastal Cloud to strengthen its cloud and AI capabilities.

TCS vs. Accenture: A Side-by-Side Comparison

We are also comparing TCS with another IT giant, Accenture, to put these numbers in perspective.

Parameter	TCS (Q1 FY27)	Accenture (Q3 FY26)
Revenue	~$8.6B (Rs 72,275 Cr)	$18.72 Billion
Revenue Growth (YoY)	+13.9%	+6% USD / +3% local currency
Net Profit	~$1.6B (Rs 13,420 Cr)	$2.39 Billion
Operating Margin	22.7%	17.0%
Net Profit Margin	18.6%	12.8%
EPS Growth	+4.6% YoY	+9% YoY
Market Cap	~$84.6 Billion	~$77.6 Billion
Employees	~600,000+	~799,000
Dividend	Rs 12/share (interim)	$1.63/share (quarterly)
New Bookings	--	$19.3 Billion
Free Cash Flow	Strong generation	$3.6 Billion

Market Cap and Profitability — TCS vs. Accenture

Key Takeaways

• Revenue Scale: Accenture's quarterly revenue ($18.7B) is more than double that of TCS ($8.6B), but TCS is growing faster — 13.9% YoY vs. Accenture's 3% in local currency.

• Profitability: TCS leads with a 22.7% operating margin, a 570 basis point advantage over Accenture's 17.0%.

• Market Cap: TCS has overtaken Accenture as the most valuable IT services company by market cap (~$84.6B vs. ~$77.6B).

• AI Strategy: Both companies are investing heavily. TCS launched the HyperVault AI Data Center and acquired Coastal Cloud. Accenture struck a ~$4.2B OT cybersecurity deal (Dragos, runZero, NetRise) and is OpenAI's Transformation Partner of the Year and Anthropic's most-certified partner globally.

• Shareholder Returns: Accenture expects to return at least $9.5B to shareholders in FY26. TCS paid Rs 110 per share in total dividends during FY26.

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This comparison is for educational purposes only and does not constitute investment advice.