Tata Consultany services (TCS) reported better than expected Q1FY27 revenue at Rs 72,275 crore, marking 14% year-on-year (YoY). Profit also increased 5% YoY at Rs 13,349 crore but drops 2.84% sequentially.

K Krithivasan, Chief Executive Officer and Managing Director of TCS said that “Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds.”

1. More than 9,000 employees hired

TCS Workforce strength stood at 593,798 in Q1FY27. TCS workforce at the end of FY26 was 584,519, the company reported in their Q4FY26 release. This signifies an increase of 9,279 employee.

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LTM Attrition (IT Services) stood at 13.6% . TCS in the previous financial yesr, FY26 trimmed nearly 2% in its workforce.

2. Employee costs stood at Rs 42,137 crore; rolled out wage hike

TCS said the had rolled out annual salary hikes for all associates globally and aligned salary structures with the new India Labour Code requirements.

Total employee costs stood at Rs 42,137 crore in Q1FY27.

Chief Financial Officer Samir Seksaria said, “In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industry-leading profitability and return ratios.”

Operating margin stood at 24.0% and net margin stood at 19.2%.

3. Q1FY27 deal wins at $9.5 billion

TCS secured total contract value (TCV) of $9.5 billion during Q1FY27. The company won an $800 million AI-led business transformation deal with global industrial company SKF, along with multi-million-dollar agreements with ServiceNow and a Europe-based Fortune Global 50 company.

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The company’s two mega deals, or deals worth over $1 billion bagged in the banking, financial services and insurance sector during the fiscal ​year-ended 2026 ​boosted the company’s revenue. The sector ⁠rose 2.4% during the first quarter.

The sector accounts for a third of its ‌total revenue.

4. AI boost: Revenue crossed $2.6 billion

TCS said its annualised AI revenue crossed $2.6 billion in the June quarter, driven by ⁠accelerated deployments ⁠across industries, up from $2.3 billion in the fourth quarter.

“As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth,” Krithivasan said.

5. Rs 12 Dividend announced

TCS declared an interim dividend of Rs 12 per equity share of face value Rs 1 each. The company will pay the interim dividend on July 31.

Conclusion

TCS kicked off the Q1FY27 with better than expected earnings. It’s peers HCLTech, Wipro and Infosys are set to release their Q1 earnings later in the month.