Tata Group-Backed IT Company Announces Q1FY26 Results & Rs 11 Per Share Dividend with Record date-July 16, 2025

DSIJ Intelligence-1 / 10 Jul 2025/ Categories: Mindshare, Trending

Tata Group-Backed IT Company Announces Q1FY26 Results & Rs 11 Per Share Dividend with Record date-July 16, 2025

The company has a market cap of Rs 12.24 lakh crore and has been maintaining a healthy dividend payout of 84 per cent.

For the first quarter ending June 30, 2025, Tata Consultancy Services (TCS) reported a consolidated revenue of Rs 63,437 crore. This represents a 1.3 per cent increase year-on-year (YoY). However, in constant currency terms, the revenue experienced a decline of 3.1 per cent YoY. Despite this, the company maintained strong profitability, achieving an operating margin of 24.5 per cent, which expanded by 30 basis points quarter-on-quarter (QoQ). The net margin also stood at a healthy 20.1 per cent, marking a 90 basis points increase YoY.

The quarter was notable for its robust order book, with a Total Contract Value (TCV) reaching US$9.4 billion, demonstrating strong client confidence and future business prospects. TCS's operational efficiency was further highlighted by a net income of Rs 12,760 crore, representing a 6.0 per cent increase YoY. Furthermore, the net cash from operations was Rs 12,804 crore, impressively equating to 100.3 per cent of its net income, indicating excellent cash generation.

In terms of human capital, TCS continued to expand its workforce, with a net headcount addition of 6,071 YoY, bringing the total workforce strength to 613,069 as of June 30, 2025. The LTM (last twelve months) IT Services attrition rate was reported at 13.8 per cent, reflecting the ongoing talent dynamics in the industry. Demonstrating its commitment to shareholder returns, TCS also announced a dividend per share of Rs 11, with the record date set for July 16, 2025 and payment date for August 04, 2025.

Client engagements in Q1 were predominantly focused on strategic initiatives such as the scaling of AI across enterprises, contact centre transformations, cost optimisation and enhanced cyber defence capabilities. The company witnessed strong growth in its AI & Data, TCS Interactive and Cyber Security units, underscoring the increasing demand for these specialised services. Deal wins largely revolved around operating model transformation, vendor consolidation, AI-powered intelligent automation and SAP S4/HANA-based transformations, showcasing TCS's diverse service offerings.

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About the Company

Tata Consultancy Services (TCS) is a global leader in digital transformation and technology, serving top organisations worldwide since 1968. With over 6,07,000 consultants in 55 countries, TCS is renowned for its innovation and engineering excellence, building long-term client partnerships across every technology cycle from mainframes to AI. Beyond its core business, TCS sponsors 14 major marathons globally, promoting health and community empowerment. For the fiscal year ending March 31, 2025, TCS reported consolidated revenues of USD 30 billion.

The company has a market cap of Rs 12.24 lakh crore and has been maintaining a healthy dividend payout of 84 per cent. The company has a good return on equity (ROE) track record: 3 Years ROE 50.3 per cent. The stock is up by 11 per cent from its 52-week low of Rs 3,060.25 per share.

Disclaimer: The article is for informational purposes only and not investment advice.