Tata Consultancy Services / TCS earns profit of ₹12,760 crore, shareholders will get big reward!

Tata Consultancy Services: The country's largest IT company Tata Consultancy Services (TCS) has created a stir in the stock market by releasing the results of the first quarter (April-June) of FY 2025-26. The company recorded a net profit (PAT) of Rs 12,760 crore in this quarter, which is much better than market expectations. Along with this, TCS achieved an income of Rs 63,437 crore. This is the first big news to start the quarterly results season, and now investors' eyes are on the performance of other companies.

Analysis of financial performance

According to the exchange filing of TCS, the consolidated net profit of the company stood at Rs 12,760 crore in the April-June quarter. However, the income stood at Rs 63,437 crore, which is slightly lower than the market estimate (Rs 64,538 crore). The operating profit (EBIT) of the company stood at Rs 15,514 crore, which is 0.6% less than last year. Analysts had estimated EBIT of Rs 15,644 crore, with a growth of 0.27% expected. Still, the profit figures have impressed everyone.

Record growth in orderbook

TCS achieved an orderbook of $9.4 billion this quarter, which reflects the strong position of the company. Double-digit growth in regional markets contributed significantly to this stellar performance. The company said that this figure was achieved due to global demand and new projects. This is a positive sign for TCS, which raises hopes of better performance in the future.

Dividend gift for investors

TCS has announced a dividend of Rs 11 per share, making its shareholders happy. This is a big gift for investors and reflects the strong financial position of the company. TCS has always been known for giving good returns to its shareholders, and this time too it has maintained this tradition.

Employee and management strength

TCS' workforce grew to 6,13,069 in the quarter, an increase of 6,071 employees year-on-year. The company's attrition rate in IT services stood at 13.8%, indicating that TCS is not only growing its team but has also managed to retain employees. CEO K. Krithivasan said,

"Despite global economic uncertainties, the company performed well in new business. TCS's hold in AI-based solutions and digital transformation is getting stronger."

Stock market mood

Ahead of the results, TCS shares closed marginally lower at Rs 3,382, down 0.06%. TCS shares have fallen 15% in the last one year, which is a weaker performance than the Nifty50 and Sensex. However, the shares have gained a spectacular 53% in the last five years. According to the opinion of 45 analysts, the investment recommendation for TCS is 'BUY', which is a positive sign for investors.