TCS Q1 FY27: Deal Momentum Holds, Margins Feel Wage Hike

Consolidated revenue was ₹72,275 crore in Q1 FY27, up 2.2% QoQ and 13.9% YoY in INR terms. In USD, revenue was $7,624 million, flat QoQ and up 2.7% YoY.

Operating margin was 24.0% and net margin was 19.2% (excluding exceptional items). Management attributed the sequential operating margin decline primarily to annual wage hikes.

TCS reported total contract value (TCV) of $9.5 billion for Q1 FY27. The performance highlights also mention North America TCV of $4.7 billion and BFSI TCV of $2.5 billion.

Management stated annualized AI services revenue was $2.6 billion at the end of Q1 FY27, up 13.6% quarter-on-quarter.

By domain, Consumer Business declined 4.0% QoQ in constant currency, while BFSI grew 1.6% QoQ CC and Technology & Services grew 1.7% QoQ CC. By geography, North America was -0.4% QoQ CC, while MEA grew 7.6% QoQ CC.

Closing headcount was 593,798 and voluntary LTM attrition in IT Services was 13.6%.