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Tata Consultancy Services Posts Higher Fiscal First-Quarter Earnings; Order Book Shrinks

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Tata Consultancy Services Posts Higher Fiscal First-Quarter Earnings; Order Book Shrinks

Tata Consultancy Services (NSE:TCS, BOM:532540) delivered higher earnings for the first quarter of the 2027 fiscal year despite a challenging macroeconomic environment.

However, the Indian IT services and consulting company posted a drop in its order book despite a number of deals made for the year.

Profit attributable to shareholders increased to 133.5 billion Indian rupees in the quarter ended June 30, from 127.6 billion rupees a year ago, according to a Thursday Indian bourse filing.

Earnings per share climbed to 36.90 rupees from 35.27 rupees a year earlier.

Revenue from operations edged up 14% year on year to 722.8 billion rupees from 634.4 billion rupees. Jefferies said the revenue figure slightly missed their estimates.

Tata Consultancy's order book declined to $9.5 billion from $12 in the prior quarter, despite a number of deals made.

The company secured several contracts and scaled its AI revenue run rate to $2.6 billion. Notable agreements include an $800 million deal to modernize the global IT infrastructure of Swedish manufacturing major SKF; a partnership with AI giant Anthropic in June to establish a dedicated business unit, bringing the Claude AI assistant to 50,000 TCS employees; and an IT modernization deal wth Norwegian packaging firm Elopak and Canada Life.

"Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds," K Krithivasan, Tata's chief executive officer and managing director, said.

"We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualized revenue run rate."

Jefferies said Tata's margins are expected to stay within the range in the absence of strong revenue growth.

"Weak growth across key regions, flat year-on-year bookings and continued AI-led revenue deflation should keep TCS's growth in check," Jefferies said in a Thursday release.

The company's board declared an interim dividend of 12 rupees per share, payable July 31 to shareholders on record by July 15.

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