Tata Consultancy Services delivered strong Q1FY27 results with consolidated net profit rising 4.6% year-on-year to ₹13,349 crore, supported by double-digit revenue growth despite continued macroeconomic and geopolitical uncertainties. According to latest reports, the company's annualized AI revenue reached $2.6 billion, representing a 13.6% quarter-on-quarter increase and highlighting the growing contribution of AI-led services to its business. Revenue from operations stood at ₹71,270 crore, implying 12.3% year-on-year growth and 0.8% sequential growth. The company's total order book stood at $9.5 billion, down from $12 billion in the previous quarter but up from $9.4 billion in the year-ago period. Employee benefit expenses rose to ₹42,137 crore from ₹40,143 crore in the preceding quarter as the company rolled out annual salary hikes for all associates.
Corporate earnings season gathers pace on July 10, 2026, with ten companies set to release their Q1FY27 results. According to reports from NDTV Profit, market participants will scrutinise the numbers to gauge the firms' performance during the April–June quarter. Following the earnings announcements, several companies will hold conference calls with investors and analysts to provide further details on their financial performance. TCS kicked off the Q1FY27 earnings season on Thursday, July 9, making it the first major IT company to report results for the new financial year.
Despite concerns about AI replacing white-collar jobs, TCS is bucking the trend with aggressive recruitment. The company's headcount increased by over 9,000 employees to 5,93,798 in the June quarter from 5,84,519 in the March quarter of last fiscal. Additionally, 14,000 campus graduates were onboarded during the quarter. CEO and Managing Director K Krithivasan defended this hiring strategy, stating "We first of all do not believe that there would be a drastic reduction in white collar jobs." The management argued that as technology evolves, roles will transform and new opportunities will arise. CHRO Sudeep Kunnumal confirmed that "campus hiring continues to focus on digital and AI-native talent supported by reimagined Initial Learning program and stronger AI centric curriculum."
CEO and Managing Director K Krithivasan emphasized that "We don't believe there will be drastic change in headcount, but people will be doing different things. We don't agree to the view that overall white collar jobs will go down." Speaking during the Q1 earnings conference call, COO Aarthi Subramanian provided detailed insights on how AI is transforming enterprise operations. "Agentic AI has rapidly dominated customer conversations this year," Subramanian said, highlighting how AI agents are now "collaborating with employees to improve productivity, resilience and speed of execution across businesses." She cited a large retailer example where 70 AI agents are orchestrating IT operations across more than 60 infrastructure and application workflows, resulting in 30% faster remediation and 80% fewer incidents through continuous 24x7 monitoring.
TCS shares ended Thursday's trading session 0.39% lower at ₹2,049.50 on the BSE as investors remained cautious ahead of the IT major's June quarter earnings announcement. The stock has declined 35% year-to-date and 36% over the last five years, according to NSE data. Technical analysts suggest the stock is trading below key moving averages, with the 1,985-2,000 zone acting as crucial support. A decisive break below this level could trigger fresh selling towards ₹1,900, while a sustained move above ₹2,250 would indicate improving momentum. The company commanded a market capitalisation of more than ₹7.53 lakh crore as of July 8, 2026, with the stock touching its 52-week high of ₹3,489.90 on July 2, 2025, and falling to its 52-week low of ₹1,976.80 on July 1, 2026.
