TCS board approves Rs 12 per share dividend as Q1 profit climbs 5%

Tata Consultancy Services (TCS) has approved an interim dividend of Rs 12 per share for FY27, with 15 July fixed as the record date for shareholder eligibility, as the company reported a 5% year-on-year rise in consolidated net profit to Rs 13,349 crore for the first quarter.

Revenue from operations grew 14% year-on-year to Rs 72,275 crore during the quarter, up 2.2% in rupee terms from the previous quarter. Operating margin stood at 24%, while net margin was 19.2%, excluding exceptional items. Net cash generated from operations was Rs 12,412 crore, equivalent to 93% of net income.

TCS secured new orders worth $9.5 billion during the quarter, including an $800 million AI-led transformation deal with SKF and a strategic partnership with ServiceNow. The company’s annualised AI revenue run rate reached $2.6 billion, a 13.6% sequential increase, following new strategic partnerships with Anthropic and Mistral.

CEO K Krithivasan said the results reflected sustained business momentum despite geopolitical uncertainty and macroeconomic challenges, as clients continued to increase spending on AI, technology modernisation and sovereign cloud infrastructure.