Stock Market News

TCS Q1 Beats Estimates with Rs.12,760 Cr Profit; Declares Rs.11 Dividend

India’s top IT giant posts 6% YoY profit growth in Q1 FY26; dividend boost, revenue beat signal resilience amid global tech caution

Mumbai, July 11, 2025 – Tata Consultancy Services (TCS) reported a 6% year-on-year jump in Q1 FY26 net profit to ₹12,760 crore, comfortably beating Bloomberg’s street estimate of ₹12,263 crore. Revenue came in at ₹65,097 crore, a 2.4% YoY rise, also exceeding the projected ₹64,636 crore, offering early reassurance on the health of India’s IT sector amid mixed global tech signals.

TCS also declared an interim dividend of ₹11 per share, with a record date of July 16 and payout scheduled for August 4, 2025. The announcement provides immediate income visibility for long-term investors, while the operational beat lifts broader sentiment across Nifty IT stocks.

Also Read : US 50% Copper Tariff Threatens Indian Exports; Analysts Flag Limited Impact

Market Reaction and Sector View

  • TCS share price closed 0.4% higher at ₹3,397.1 ahead of results

  • Q1 operating margin flat at 24%, despite wage hikes and lower utilisation

  • Order book remains strong, with deal TCV of $10.4 billion, up 4.5% QoQ

Brokerages noted the company’s ability to hold margins and beat revenue estimates despite macroeconomic concerns in BFSI and Retail sectors. “The Q1 print reflects robust execution and early green shoots in discretionary spending. This could be a positive read-through for Infosys and Wipro next week,” said Rahul Jain, VP IT Research at Dolat Capital.

Sectorally, Nifty IT may now see near-term support at 39,100, with traders watching for a technical breakout if other large caps mirror TCS’s momentum. FIIs, who’ve turned cautious recently, may reassess sector exposure post this result.

Outlook & Stocks to Watch

With the Q1 earnings season underway, TCS has set a positive tone for IT majors. Traders may monitor Infosys, HCLTech, and LTIMindtree for sympathy moves. Short-term resistance for TCS is seen near ₹3,460, while support lies at ₹3,320.

Global macro cues, including upcoming US inflation data and Trump’s tariff stance on tech imports, could impact broader market volatility and tech valuations this week.

Stay tuned for Infosys Q1 results on July 15, which will further shape sentiment in Nifty IT and Bank Nifty ahead of index expiry.

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Sourabh Sharma

Sourabh loves writing about finance and market news. He has a good understanding of IPOs and enjoys covering the latest updates from the stock market. His goal is to share useful and easy-to-read news that helps readers stay informed.

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