India’s largest IT services company Tata Consultancy Services (TCS) on July 10 reported $9.4 billion in total contract value (TCV) for the quarter ended June 30, beating Street estimates as deal closures remain robust despite macro challenges.
The company managed to beat the analyst estimates of $8-9 billion in deal wins in Q1, seeing positive year-on-year growth in constant currency in banking, financial services and insurance (BFSI) and energy, resources and utilities, technology & services verticals.
To be sure, rest of the other verticals including manufacturing, life sciences & healthcare, and consumer business declined.
The TCV for the quarter was 13.25 percent higher than the 8.3 billion reported in the year-ago period and was down almost 23 percent from the previous quarter, the company said on July 10.
Also read: Our LIVE blog on TCS Q1 results
K Krithivasan, Chief Executive Officer and Managing Director, said, “The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation”.
Some of the deal wins reported by TCS in Q1 include AI, data analytics, and digital innovation driven deals with Schneider Electric, Marathon de Paris. The other agreements include platform modernisation deals with ICICI Securities and Oman’s Dhofar Insurance; BSNL deal extension for engineering, testing, maintenance of 4G mobile network and digital transformation deal with Virgin Atlantic.
TCS on Thursday announced its Q1 FY26 net profit rose 6 percent year-on-year to Rs 12,760 crore. The earnings surpassed Street expectations. A Bloomberg consensus poll of analysts pegged TCS' April-June net profit growth at a muted 1.9% to Rs 12,263 crore.
Its revenue from operations grew 1.3 percent to Rs 63,437 crore for the April-June quarter. That was lower than the Bloomberg consensus estimate of Rs 64,636 crore.
TCS declared an interim dividend of Rs 11 per share of Re 1 face value each.
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