Blitz Bureau
NEW DELHI: Tata Consultancy Services began the FY27 season with net profit of ₹13,349 crore, up 4.6% year-on-year, on revenue of ₹72,275 crore, up 13.9% reported though only low single digits in constant currency. Operating margin was 24%, down 130 basis points sequentially on wage hikes; attrition held at 13.9%.
The order engine did the talking: total contract value of $9.5 billion, a marquee AI-led deal with Sweden’s SKF, and an AI business at a $2.6 billion annualised run-rate. A ₹12 interim dividend was declared, with a July 15 record date. Infosys, HCLTech and Wipro report over the coming days and will test how broad the recovery is.
Season opener: A $9.5bn order book and a $2.6bn AI run-rate set the read-through for the sector.
The headline is reported growth; the signal is the pipeline — a $9.5bn book and a scaling AI franchise outweigh any single quarter’s margin.
By the Numbers
- Net profit: ₹13,349 cr, +4.6% YoY
- Revenue: ₹72,275 cr, +13.9% reported
- Margin / attrition: 24% (−130 bps QoQ); 13.9%
- TCV / AI / payout: $9.5bn; $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 — volume has to follow the order book.
The constructive priority is conversion: turning a large book and rising AI mandates into revenue and margin, so FY27 becomes durable growth rather than a strong order announcement alone.
This is news and analysis, not investment advice. Company figures are as reported and subject to audit and revision.