Tata Consultancy Services (TCS) reported a 4.6% year-on-year increase in consolidated net profit to ₹13,349 crore for the first quarter of FY27, supported by strong revenue growth and continued momentum in AI-led transformation projects despite a challenging global environment.
The country’s largest IT services company posted revenue of ₹72,275 crore during the April-June quarter, up 13.9% from ₹63,437 crore in the corresponding period of the previous financial year.
Strong deal pipeline
TCS reported a strong quarterly order book of $9.5 billion, reflecting healthy client demand across digital transformation, artificial intelligence, cloud migration and cybersecurity services.
The company also secured a marquee AI-led transformation contract with industrial technology company SKF, further strengthening its position in the rapidly growing AI services market.
AI business gathers momentum
The company said its AI business has reached an annualised revenue run rate of $2.6 billion, highlighting increasing customer investments in AI adoption, application modernisation, sovereign cloud, cybersecurity and platform simplification.
TCS believes its growing ecosystem partnerships and improved client engagement position it well to capitalise on expanding enterprise AI spending.
Focus on AI capabilities
During the quarter, TCS strengthened its AI ecosystem by signing strategic partnerships with AI companies Anthropic and Mistral AI.
The company said it continued to win AI-led transformation projects across IT operations, software engineering, business process redesign, software modernisation and SaaS implementation.
Continued investment in people
TCS rolled out annual salary increments for employees globally during the quarter while aligning compensation structures with the new India Labour Code requirements.
The company also continued investments in AI infrastructure and next-generation learning platforms aimed at preparing employees for emerging technology opportunities.
Leadership speak
Tata Consultancy Services Chief Executive Officer and Managing Director, K Krithivasan said the company’s first-quarter performance reflected the strength of its strategic positioning despite geopolitical and macroeconomic headwinds.
He said strong deal wins, expanding AI capabilities, improved client mining and growing ecosystem partnerships position TCS to convert rising enterprise investments in AI, cybersecurity, cloud and modernisation into sustained growth.
Tata Consultancy Services Executive Director, President and Chief Operating Officer, Aarthi Subramanian said the quarter witnessed strong growth across multiple service lines, with several AI-led transformation deals validating the company’s approach to AI-driven optimisation and innovation.
Tata Consultancy Services Chief Financial Officer, Samir Seksaria said the company continued to invest in AI capabilities and strategic partnerships while maintaining disciplined execution and industry-leading profitability.
Tata Consultancy Services Chief Human Resources Officer, Sudeep Kunnumal said TCS remains focused on building a future-ready workforce through investments in AI infrastructure, digital learning platforms and employee development initiatives.