TCS reports growth numbers of restructured business groups in Q1

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26 Aug, 2025 12:21

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This was the first quarter ever since the organisational restructuring of Tata Consultancy Services (TCS) came into being in April 2022. At its Q1FY23 results on July 8, TCS gave a glimpse of how this is playing out.

Through this restructuring, TCS had divided its clients into four distinctive business groups depending on the clients' journey with the IT major instead of verticals and geographies. These were acquisition group, relationship incubation group, enterprise group and  finally business transformation group.

Speaking at the earnings meet, senior executives shared that the relationship incubation group grew over 5 percent this quarter in terms of revenue growth from the clients in that category while business transformation group reported 5.6 percent growth in revenue. Meanwhile, enterprise group grew over 17 percent but on a YoY basis.

ALSO READ: TCS Q1FY23 result | Despite strong deal pipeline, company remains vigilant: CEO

N Ganapathy Subramaniam, COO, TCS said, “Overall the growth has been broad based across the three distinctive groups we have created. Moving forward we will give more details on how we are performing in each of these groups, but I am pleased to say that Business Transformation Group clocked 5.6 percent growth this quarter. Likewise, Relationship Incubation Group has also had above 5 percent growth and Enterprise Group also grew more than 17 percent YoY.”

“The organisation has come together very smoothly. Transitions are almost complete. In fact, front-end transitions are all complete. Some of the backend transitions are still ongoing. Overall, we are quite happy with the progress. This has injected fresh energy into the teams. The world approached to curated customer journeys, that has resonated with very strongly with our teams and customers,” said Rajesh Gopinathan, CEO & MD, TCS.

ALSO READ: TCS attrition rises to 19.7% in Q1FY23, 14,136 employees added during the quarter

Gopinathan added, “All of this should give us good buoyancy but I don’t want to be drawn to be giving a specific number. The proof point of that will not be on the revenue side, but we are expecting a greater vibrancy on the bottom end of our client pyramid as they make the progression from lower revenue band to the upper revenue band. That is one metric that will give an idea of how good the structure is, but you need to give it time to really deliver on those strategic drivers.”

Earlier today, the IT services major announced its Q1 results, clocking in Rs 9,478 crore in net profit, a jump of 5.21 percent YoY against Rs 9,008 crore in the same quarter last year. On a QoQ basis though, it was down 4.51 percent.

Revenue from operations in Q1 stood at Rs 52,758 crore, 16.17 percent higher YoY and 4.28 percent QoQ.