Tata Consultancy Services Limited Q1 FY2027 Results
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
TCS Q1 FY2027: Revenue ₹72,275 Cr (vs ₹63,437 Cr YoY), PAT ₹13,420 Cr (vs ₹12,819 Cr YoY)
TCS reported consolidated Q1 FY2027 revenue of ₹72,275 Cr and PAT of ₹13,420 Cr, both up YoY versus Q1 FY2026. Operating income was ₹16,376 Cr with total expenses of ₹55,231 Cr, reflecting continued investment in people and operations. Management recorded a one‑off settlement of legal claim of ₹668 Cr in the quarter and declared an interim dividend of ₹12 per share. Statutory audit opinion was unmodified; near‑term outlook appears stable but includes one‑off charges and elevated unallocable expenses.Revenue (consolidated, Q1 FY2027)Page 8
₹72,275 Crvs ₹63,437 Cr in Q1 FY2026
Profit after tax (consolidated, Q1 FY2027)Page 8
₹13,420 Crvs ₹12,819 Cr in Q1 FY2026
Profit before tax (consolidated, Q1 FY2027)Page 8
₹17,944 Crvs ₹16,979 Cr in Q1 FY2026
Total expenses (consolidated, Q1 FY2027)Page 8
₹55,231 Crvs ₹48,118 Cr in Q1 FY2026
Employee benefit expenses (consolidated, Q1 FY2027)Page 8
₹42,137 Crvs ₹37,715 Cr in Q1 FY2026
Earnings per share (Basic & Diluted, Q1 FY2027)Page 8
₹36.90vs ₹35.27 in Q1 FY2026
Other income (consolidated, Q1 FY2027)Page 8
₹1,568 Crvs ₹1,660 Cr in Q1 FY2026
Interim dividend declaredPage 1
₹12.00 per sharevs ₹11.00 per share in Q1 FY2026
Key Highlights
9
Banking, Financial Services & Insurance remains largest vertical with revenue of ₹27,990 Cr in Q1 FY2027, supporting consolidated growth
Operating income stood at ₹16,376 Cr in Q1 FY2027, down QoQ due to higher unallocable expenses
Unallocable expenses rose to ₹2,180 Cr in Q1 FY2027, driven by non‑recurring items including legal settlement
Company recognised a settlement of legal claim of ₹668 Cr in Q1 FY2027 as an exceptional item
Total comprehensive income for the period was ₹13,673 Cr in Q1 FY2027, reflecting OCI swings due to currency and investment fair value movements
Employee benefit expense of ₹42,137 Cr in Q1 FY2027 increased YoY, indicating higher people cost absorption during the quarter
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Key Highlights
9
Banking, Financial Services & Insurance remains largest vertical with revenue of ₹27,990 Cr in Q1 FY2027, supporting consolidated growth
Operating income stood at ₹16,376 Cr in Q1 FY2027, down QoQ due to higher unallocable expenses
Unallocable expenses rose to ₹2,180 Cr in Q1 FY2027, driven by non‑recurring items including legal settlement
Company recognised a settlement of legal claim of ₹668 Cr in Q1 FY2027 as an exceptional item
Consolidated basic and diluted EPS was ₹36.90 in Q1 FY2027, up YoY reflecting profit growth despite one‑offs
Total comprehensive income for the period was ₹13,673 Cr in Q1 FY2027, reflecting OCI swings due to currency and investment fair value movements
Employee benefit expense of ₹42,137 Cr in Q1 FY2027 increased YoY, indicating higher people cost absorption during the quarter
Segment results show Manufacturing and Consumer verticals contributed ₹1,983 Cr and ₹3,308 Cr respectively in Q1 FY2027
Other income in Q1 FY2027 was ₹1,568 Cr, higher than the previous quarter but slightly below Q1 FY2026 levels
Guidance & Outlook
3
Board declared an interim dividend of ₹12.00 per equity share to be paid July 31, 2026
Statutory auditors issued an unmodified opinion on the Q1 FY2027 consolidated results, supporting reliability of reported numbers
Management continues to absorb restructuring and legal‑related non‑recurring costs while running core operations—no explicit revenue guidance provided for Q2 FY2027
Risks & Concerns
5
Final denial by the US Supreme Court resulted in an additional exceptional provision of US$70m (₹668 Cr) in Q1 FY2027, creating earnings volatility
Unallocable expenses increased to ₹2,180 Cr in Q1 FY2027 (from ₹1,556 Cr in Q1 FY2026), pressuring operating income
Employee costs are rising
Other comprehensive income exhibited volatility (OCI ₹253 Cr in Q1 FY2027 vs ₹1,281 Cr in Q1 FY2026) driven by FX and fair value swings, risking earnings variability
Legal and regulatory exposures remain material—historical provisions include restructuring and labour code impacts disclosed for FY2026
AI-generated analysis. May contain inaccuracies — verify against original sources.