Tata Consultancy Services (TCS), India’s largest IT services company, announced an interim dividend of ₹12 per share along with its June quarter (Q1FY27) results. The company said its Board of Directors has recommended an interim dividend of ₹12 per equity share.
The company has fixed Wednesday, July 15, 2026, as the record date to determine the eligibility of shareholders for the interim dividend. The dividend will be paid on Friday, July 31, 2026. In the final quarter of last fiscal, TCS had declared a dividend of ₹31 per equity share.
Earlier in January, the Tata Group company announced a total dividend of ₹57 per share, comprising a special dividend of ₹46 per share and an interim dividend of ₹11 per share. In FY26, TCS returned ₹39,571 crore to shareholders through dividends.
Over the past 12 months, TCS has declared total equity dividends of ₹110 per share. According to Trendlyne data, the company has announced 94 dividends since October 28, 2004.
TCS reports steady Q1 performance
TCS reported an in-line performance for the quarter ended June 2026, with revenue rising 2.2% sequentially and 13.9% year-on-year to ₹72,275 crore.
The company posted a net profit of ₹13,349 crore, up 5.5% from a year earlier, while its net profit margin stood at 19.2%. The June quarter results included a legal settlement charge of ₹668 crore, compared with a legal settlement expense of ₹1,010 crore for the year ended March 31, 2026.
On the operating front, the margin came in at 24% and generated net cash from operations of ₹12,412 crore, equivalent to 93% of its net profit during the quarter.
The company’s workforce stood at 593,798 employees, while the last twelve months (LTM) attrition rate in its IT services business was 13.6%.
Samir Seksaria, Chief Financial Officer, said, “In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industry leading profitability and return ratios”.
Meanwhile, the company reported a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF. The company also continued to add clients across key revenue bands, while its AI business scaled to an annualised revenue run rate of $2.6 billion, up 13.6% quarter-on-quarter.
Stock slides 36% YTD
TCS shares have declined about 36% so far this year, falling from ₹3,215 apiece to ₹2,049. The sharp decline has wiped out nearly ₹4.22 lakh crore in market value, reducing the company’s market capitalisation to around ₹7.4 lakh crore.
The domestic IT sector has faced multiple headwinds this year, including macroeconomic uncertainty, AI-led disruptions and geopolitical tensions. These challenges, coupled with rising expectations of a U.S. Federal Reserve interest rate hike, have weighed on investor sentiment, prompting overseas investors to trim their exposure to the sector.
As a result, the Nifty IT index has declined 31% in the first half of calendar year 2026 (H1CY26).
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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