TCS Q1 FY27: Consolidated PAT ₹13,420 Cr, flat QoQ amid CSC settlement
TCS reported a sequential decline in net profit due to a non-recurring ₹668 Cr legal settlement, though underlying revenue momentum remained solid. For Q1 FY27 (ended June 30, 2026), consolidated PAT fell 2.65% QoQ to ₹13,420 Cr due to settlement of the Computer Sciences Corporation trade secrets case following the US Supreme Court's denial of the company's petition on June 15, 2026. However, YoY revenue grew a robust 13.95% to ₹72,275 Cr and net profit rose 4.69% to ₹13,420 Cr. Standalone PAT came in at ₹13,642 Cr. Operating margins compressed 86 bps YoY to 25.74% (before exceptional items), reflecting wage hike headwinds management guided for. Both standalone and consolidated segments were identically impacted by the legal settlement. EPS (basic and diluted) totalled ₹36.90 (consolidated) and ₹37.70 (standalone). The Board declared an interim dividend of ₹12 per equity share.
Key Highlights
- Revenue surged 13.95% YoY to ₹72,275 Cr (consolidated); QoQ growth modest at +2.23%.
- PAT ₹13,420 Cr down 2.65% QoQ, up 4.69% YoY; ₹668 Cr exceptional CSC settlement in Q1.
- Operating margin compression of 86 bps YoY to 25.74%; wage hike impact evident.
- Underlying business in line with guidance; non-recurring legal charge masks sequential momentum.
- Interim dividend ₹12 per share declared on June 30, 2026.
Price Impact
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