TCS Posts Strong Q1 Growth, AI Emerges as the Biggest Growth Driver

India's largest IT services company, Tata Consultancy Services (TCS), reported a net profit of ₹13,349 crore for the first quarter of the current financial year, registering a 4.61% year-on-year growth from ₹12,760 crore. Revenue also increased by 14% to ₹72,275 crore, driven by strong demand for artificial intelligence (AI), cloud modernization, cybersecurity, and digital transformation services. TCS CEO and Managing Director K. Krithivasan said the company's performance reflects the strength of its strategic positioning despite ongoing geopolitical and macroeconomic uncertainties, expressing confidence that demand will improve further in the second quarter.

TCS continued its hiring momentum by adding over 9,200 employees during the April-June quarter, taking its total workforce to 5,93,798. The company issued more than 14,000 offers to fresh graduates and reaffirmed its commitment to campus recruitment, particularly for AI-skilled talent. TCS also secured $9.5 billion worth of new contracts during the quarter, including an $800 million AI transformation deal with SKF. The company announced an interim dividend of ₹12 per share and emphasized that AI will enhance productivity rather than reduce white-collar jobs. It also announced strategic AI partnerships with Anthropic and Mistral.