💼 TCS Q1 Results FY26: Profit Beats Estimate, Salary Hike Delayed | TCS Share Price, ADR, and IT Sector Impact
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📊 TCS Q1 FY26 Results (April–June 2025)
India's largest IT company, Tata Consultancy Services (TCS), announced its Q1 FY26 earnings on July 11, 2025. Here’s the key financial breakdown:
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Revenue: ₹63,437 crore (YoY ↑ 1.3%)
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Net Profit: ₹12,760 crore (YoY ↑ 6.2%)
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Operating Margin: 24.5%
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Total Contract Value (TCV): $9.4 billion (↓ from $13.2B last quarter)
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EPS: ₹35.03
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Dividend: ₹11/share; record date: July 16, 2025
🧾 TCS beat profit estimates but missed revenue expectations, leading to a slight dip in investor confidence.
📉 TCS Share Price Reaction
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NSE/BSE: ₹3,272 (↓ 2.4% post-results)
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52-week Range: ₹3,056 – ₹4,592
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Market Cap: Over ₹12 lakh crore
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P/E Ratio: ~24x
📉 Investors reacted cautiously due to declining deal volume and uncertain macroeconomic outlook.
🌐 TCS ADR and Global Investors
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TCS ADR (TTNQY – OTC): Light trading; currently low activity
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Infosys ADR (INFY): $19.64
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Wipro ADR (WIT): $5.83
🌎 TCS ADRs offer U.S. investors limited access but are not actively traded like INFY or WIT.
💼 TCS Salary Hike Update (FY26)
🚫 No Immediate Hike Announced
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CHRO Milind Lakkad: “Salary hikes not finalized; will be reviewed later in the year.”
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Reason: Demand slowdown, client budget tightening, and lower deal flow.
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Attrition: Slight increase to 13.8% from 13.3% last quarter.
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Headcount: 6,071 net additions; total: 613,069
🕒 TCS employees may need to wait until Q2/Q3 for confirmation on pay revisions.
📈 Infosys & Wipro Market Reaction
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Infosys Share Price (NSE): ₹1,489 (↓ 1.2%)
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Infosys ADR: $19.64
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Wipro Share Price: ₹464 (↓ 0.8%)
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Wipro ADR: $5.83
🔄 IT sector peers also fell as TCS results signal caution for the entire industry.
🧠 Expert Commentary
"While TCS’s profit resilience is commendable, revenue softness and slower decision-making from global clients are weighing on growth. Salary hikes being on hold further indicate a conservative approach to cost management."
– Analyst, Kotak Institutional Equities
🔮 Outlook Ahead
Factor | Status |
---|---|
Salary Hike | Under review, no timeline |
Revenue Visibility | Weak in BFSI, stable in Healthcare & Retail |
Hiring Outlook | Selective, lateral-focused |
Deal Pipeline | Cautiously optimistic |
Dividend Payout | Continued quarterly basis |
📌 Conclusion
TCS’s Q1 FY26 results show strong net profit and stable margins, but a dip in revenue growth and deal momentum casts a shadow over the near term. For employees, salary hikes remain uncertain, while investors are watching closely for Q2 updates and demand revival.
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TCS Q1 Results FY26: Profit Beats Estimate, Salary Hike Delayed | TCS Share Price, ADR, and IT Sector Impact
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