TCS operating margin – Bharat Pulse News

Tata Consultancy Services reported moderate revenue growth in the first quarter of FY27 while resuming workforce expansion. The IT services major added more than 9,000 employees during the June quarter despite cautious global technology spending. TCS Q1 Revenue Rises 2.7% TCS reported quarterly revenue of $7.6 billion, representing year-on-year growth of 2.7%. Revenue remained largely unchanged compared with the previous quarter. In constant currency terms, revenue increased 3.2% from a year earlier and 0.4% sequentially. The results reflected subdued discretionary technology spending as global companies reassessed investments amid economic uncertainty and rapid artificial intelligence adoption. Consolidated net profit declined 2.7% sequentially after the company recorded a one-time charge of ₹668 crore linked to the DXC Technology trade secrets litigation. TCS Operating Margin Falls to 24% The company’s operating margin declined by 130 basis points sequentially to 24%, mainly because of annual salary revisions. TCS said wage increases typically affect profitability during the first quarter, with margins expected to improve during the remaining financial year. The company aims to return to an operating margin of around 25% while continuing investments in growth and emerging technologies. Management said customers were increasingly moving towards outcome-based artificial intelligence programmes aimed at improving productivity and modernising operations. TCS Adds Over 9,000 Employees TCS added 9,279 employees during the quarter, its highest quarterly net workforce addition in nearly four years. Total employee strength increased to 593,798, while voluntary attrition in IT services improved marginally to 13.6%. The company also onboarded approximately 14,000 campus graduates during the quarter. TCS said artificial intelligence would transform existing jobs and create new roles in areas such as prompt engineering, model training, testing, governance and lifecycle management.

TCS Q1 Revenue Rises 2.7%, Hiring Rebounds

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