TCS Hiring Picks Up in Q1 FY27 Despite Global Uncertainty

Today, Tata Consultancy Services (TCS) reported its first quarter for FY27, a consolidated net profit of ₹13,349 crore for Q1 FY27, down 2.7% sequentially, mainly due to a one-time legal settlement of ₹668 crore.

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The reported profit was slightly below market estimates of ₹13,461 crore. However, the company exceeded revenue expectations, reporting ₹72,275 crore in revenue for the April-June quarter against estimates of ₹71,847 crore.

Excluding the exceptional legal charge, net profit stood at ₹13,849 crore, up 8.5% year-on-year, while revenue increased 13.9% YoY and 2.2% quarter-on-quarter.

TCS also recorded an additional $70 million charge after the US Supreme Court rejected its appeal in the trade secrets case with DXC Technology. Excluding the one-time item, the operating margin stood at 24%.

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Strong Hiring Continues

TCS added 9,279 employees on a net basis during the June quarter (Q1 FY27), taking its total workforce to 593,798 employees. This is one of the company’s highest quarterly net additions in recent years and reflects its continued focus on building talent.

The company’s IT services attrition improved slightly to 13.6%, compared with 13.7% in the previous quarter, indicating stable employee retention.

Deal Wins and AI Business

During the quarter, TCS reported a total contract value (TCV) of $9.5 billion, supported by large deals across industries.

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The company also said its annualised AI business has crossed $2.6 billion, reflecting increasing demand from clients for AI-related services and transformation projects.

Despite continued uncertainty in some global markets, TCS said clients are investing in digital transformation, cloud, data, cybersecurity and AI. The company also continued to invest in hiring and upskilling employees to meet future business needs.

CEO Comment

Commenting on the results, K. Krithivasan, CEO and Managing Director, TCS, said the company delivered steady growth during the quarter despite geopolitical and macroeconomic challenges.

He added that TCS continued to see strong deal conversions, expanded its AI business, and strengthened client relationships, helping maintain business momentum during the quarter.

The Q1 FY27 results show that TCS continues to maintain steady business growth while expanding its workforce.

The company’s hiring, strong order book and growing AI business indicate that it remains focused on long-term opportunities even as the broader IT services market continues to see cautious client spending.

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