TCS Q1 FY 2025-26 Earnings Preview: Flat Revenue, Interim Dividend in Focus

onsultancy Services (TCS), India’s largest IT services exporter, is set to announce its financial results for the first quarter of FY 2025-26 (April-June 2025) after market hours today. The company’s board is also expected to consider an interim dividend for shareholders, with July 16, 2025, fixed as the record date for any declared dividend. According to an ET NOW poll, TCS is projected to report flat revenue of Rs 64,538 crore for Q1 FY26, marginally up from Rs 64,479 crore in Q4 FY25. In US dollar terms, revenue is estimated at $7,530 million, a slight increase from $7,465 million in the previous quarter. The anticipated profit after tax (PAT) is Rs 12,205 crore, a marginal decline of 0.16% from Rs 12,224 crore in Q4 FY25. Analysts attribute the muted revenue growth to a ramp-down in the BSNL contract and subdued demand in global markets, particularly in Europe, offset by recovery in the US BFSI sector. Key areas to watch include deal wins, expected to be in the $7–8 billion range, management commentary on demand trends, and the impact of US tariff uncertainties. TCS’s EBIT margin is forecasted to expand slightly to 24.3% from 24.2% in Q4 FY25, supported by cost control measures and currency tailwinds. The company’s focus on AI and cloud services, with over 270 AI/GenAI engagements in progress, is expected to drive future growth. TCS’s workforce stood at 607,979 as of March 31, 2025, with an IT services attrition rate of 13.3%. Investors will also monitor guidance for FY26, headcount trends, and progress on generative AI initiatives. TCS shares closed at Rs 3,384.35 on July 9, 2025, down slightly, reflecting cautious market sentiment ahead of the results.