TCS Q1 Results FY26: Profit Declines Slightly, Revenue Sees Marginal Growth Amid Rising Attrition

Tata Consultancy Services (TCS), India’s largest IT services company and a key pillar of the Tata Group, reported a modest financial performance for the first quarter of the financial year 2025–26 (Q1FY26), reflecting global economic uncertainties and a shift in client spending patterns.

Net Profit Drops to ₹11,800 Crore in Q1FY26

TCS posted a consolidated net profit of ₹11,800 crore for the quarter ended June 30, 2025, marking a slight decline compared to ₹12,040 crore in the same period last year. This dip highlights ongoing margin pressures and macroeconomic headwinds affecting the IT sector globally.

Revenue Grows Marginally to ₹63,437 Crore

The company’s revenue stood at ₹63,437 crore, up by 1.3% year-on-year from ₹62,613 crore. However, on a constant currency basis, revenue saw a 3% decline, indicating currency fluctuations and weaker performance across some international markets.

Attrition Rate Inches Up, But Hiring Rebounds

Employee attrition witnessed a slight uptick, with the last twelve months (LTM) attrition rate rising to 13.8% in Q1FY26, up from 13.3% in Q4FY25. Despite this, TCS added over 5,000 new employees in the quarter, signaling confidence in project pipelines and future demand.

As of June 30, 2025, the company’s total workforce stood at 613,069, up from 607,979 in the previous quarter, maintaining its position as one of the world’s largest IT employers.

Strategic Outlook: Focus on Efficiency and Client Relationships

TCS continues to focus on long-term client relationships, operational efficiency, and investments in generative AI and cloud services. While discretionary tech spending remains cautious in key markets like North America and Europe, the company is banking on emerging technologies and automation to drive future growth.

Disclaimer:- This news article is based on publicly available financial data and quarterly performance details of Tata Consultancy Services (TCS). All numbers and analysis have been independently prepared for informational purposes only and are not sourced or copied from any other publication.