Blitz Bureau
NEW DELHI: Tata Consultancy Services began the FY27 earnings season with net profit of ₹13,349 crore, up 4.6% year-on-year from ₹12,760 crore, on revenue of ₹72,275 crore, up 13.9% in reported terms though a slimmer 3.2% in constant currency. Operating margin was 24%, down 130 basis points sequentially, with wage hikes shaving about 170 basis points.
The order engine did the talking: total contract value of $9.5 billion, a marquee AI-led transformation deal with Sweden’s SKF, and an AI business scaling to a $2.6 billion annualised run-rate, up about 13.6%. The board declared a ₹12 interim dividend. Attention now turns to Infosys, HCLTech and Wipro, which report over the coming days and will test how broad the recovery is.
The headline is reported growth; the signal is the pipeline — a $9.5bn book and a scaling AI franchise matter more than any single quarter’s margin.
By the Numbers
- Net profit: ₹13,349 cr, +4.6% YoY
- Revenue: ₹72,275 cr, +13.9% reported (+3.2% CC)
- Margin: 24% operating (−130 bps QoQ; wage hit ~170 bps)
- TCV / AI / payout: $9.5bn book; $2.6bn AI run-rate; ₹12 dividend
For the sector, the read-through is cautiously constructive: deal flow is healthy and AI is converting from pilots into signed work, even as US clients keep discretionary budgets tight. The modest constant-currency growth is the honest note in the numbers — volume, not just billing, has to follow the order book.
The constructive priority is conversion — turning a large book and rising AI mandates into revenue and margin, so the FY27 story becomes durable growth rather than a strong order announcement alone. The peers’ prints this week will show whether the read extends across the sector.