Interim Dividend and Record Date
The board of directors declared an interim dividend of ₹12 per equity share of face value ₹1 each. The record date for the dividend has been fixed as July 15, 2026, and payment is scheduled for July 31, 2026. Shareholders whose names appear in the register of members or in depository records as beneficial owners as on the record date will be eligible to receive the dividend.
Order Book and AI Business
Total contract value (TCV) for Q1 FY27 stood at $9.5 billion, reflecting continued demand for large-scale technology transformation engagements. Among the key wins was a $800 million global AI-led business transformation deal with SKF, a major industrial company, involving enterprise-wide digital ecosystem development. TCS also secured a multi-million dollar strategic deal with ServiceNow to accelerate large-scale AI adoption for enterprises, a partnership with a Europe-based Fortune Global 50 firm for HR and employee experience transformation, and a deal with a North American utility major for AI-driven IT transformation.
Annualised AI revenue reached $2.6 billion in Q1 FY27, up 17% QoQ, as enterprise demand for AI-driven modernisation, cybersecurity, cloud transformation, and autonomous operations continued to scale. TCS also announced strategic partnerships with Anthropic and Mistral during the quarter. As part of the Anthropic partnership, TCS will set up a dedicated business unit focused on Claude models and equip 50,000 associates across engineering, finance, legal, marketing, and sales functions through enterprise-wide licensing. The company also became the first global systems integrator partner for Mistral Forge.
Segment and Geography Performance
Banking, financial services and insurance (BFSI) remained the largest vertical, contributing 32% of revenue in Q1FY27 and growing 2% YoY in constant currency terms. Regional markets and others grew 9% YoY in constant currency, the fastest among all verticals. India geography recorded 23% YoY constant currency growth, while the Middle East and Africa segment grew 9% YoY. Consumer business declined 1% YoY in constant currency. North America, the largest geography, grew 2% YoY in constant currency and accounted for 48% of consolidated revenue.
Management Commentary of TCS
K Krithivasan, Chief Executive Officer and Managing Director, said the quarter reflected continued growth momentum despite geopolitical and macroeconomic headwinds. He cited the strong order book, client additions across key revenue bands, and the scaling of the AI business as key contributors to the quarter's performance.
Aarthi Subramanian, Executive Director, President and Chief Operating Officer, said Q1 was marked by strong growth across several services, with multiple AI-led transformation deals validating the company's dual commitment to AI-led optimisation and innovation-led outcomes.
Samir Seksaria, Chief Financial Officer, noted that the company rolled out annual wage hikes during the quarter, targeted investments to enhance long-term competitiveness, and remained focused on building or acquiring capabilities for AI while maintaining disciplined execution.
Workforce
Workforce strength stood at 5,93,798 as of June 30, 2026. Last twelve months (LTM) attrition in IT services stood at 14%.
About TCS
Tata Consultancy Services is India's largest IT services company by revenue and market capitalisation, operating across banking and financial services, consumer business, manufacturing, life sciences, communication, media, technology, and energy sectors in over 55 countries.
Conclusion
TCS has reported a steady performance in Q1 FY27, with consolidated revenue growing 14% YoY to ₹72,275 crore and net profit rising 5% YoY to ₹13,420 crore. The quarter was marked by a $9.5 billion order book, an annualised AI revenue run rate of $2.6 billion, and multiple large deal wins across verticals and geographies. The board's declaration of ₹12 per share interim dividend with a July 15, 2026 record date provides additional visibility for shareholders in the near term.
