TCS Q1 results: TCS profit increased by 9% to Rs 12040 crore, investors will get Rs 10 per share dividend

Tata Consultancy Services :The profit (TCS Profit) of the country’s largest IT company TCS in the June quarter of financial year 2025 has increased by 8.7 percent year-on-year to Rs 12,040 crore. In the same period a year ago, TCS’s profit was Rs 11,074 crore. The company’s profit has come as per estimates. However, the profit has decreased on a quarterly basis. The company has announced a dividend of Rs 10 per share to the shareholders. The company’s revenue has also increased by 5.4 percent on an annual basis.

Revenue stood at Rs 62,613 crore

In the June quarter of financial year 2025, TCS’s revenue from operations grew 5.4 per cent on an annual basis to Rs 62,613 crore. However, the company’s profit declined by 3.1 per cent in the June quarter on a quarterly basis. TCS’ June quarter results show that the company’s margins have been affected due to the salary hike cycle during the quarter. The company’s EBIT margin or operating margin narrowed to 24.7 per cent for Q1, a decline of 130 basis points from 26 per cent in the previous quarter.

5452 new employees added

TCS added 5452 new employees in the first quarter, taking the total workforce to 6.07 lakh. The company’s attrition rate stood at 12.1 per cent on a last twelve month (LTM) basis. The company reported a total contract value of $8.3 billion in Q1, a decline on a year-on-year and quarter-on-quarter basis. In Q4, TCS saw a record high quarterly orderbook of $13.2 billion.

How much growth in which segment

BFSI continued to decline by 0.9 per cent YoY in CC terms, followed by Consumer Business down 0.3 per cent, Technology Services down 3.9 per cent and Communications & Media down 7.4 per cent. Manufacturing grew by 9.4 per cent, Life Sciences & Healthcare by 4 per cent, Energy Resources & Utilities by 5.7 per cent.

How much growth in which region

The Indian market grew 61.8% in CC terms, followed by MEA with 8.5% YoY CC growth, Asia Pacific with 7.6% YoY CC growth and Latin America with 6.3% CC terms growth. Growth in the largest markets including North America declined 1.1% in CC YoY, while the UK grew 6% and Continental Europe grew 0.9%.

Strong start to the financial year

TCS CEO and Managing Director K Krithivasan said that the new financial year has started strongly with all-round growth in the industry and markets. Krithivasan said that the company continues to invest in innovation, including expanding its customer relationships, creating new capabilities in emerging technologies and expanding the AI-focused TCS Passport in France, IoT Lab in the US and supply centers in Latin America, Canada and Europe.

Strong operating margins

The company’s Chief Financial Officer Sameer Seksaria said that despite the normal impact of annual salary hike in the June quarter, TCS has achieved strong operating margins. TCS Chief Human Resources Officer Milind Lakkad said that with a constant focus on employee engagement and their development, we have been able to retain employees and demonstrate strong business performance.