Tata Consultancy Services (TCS) reported a strong start to the financial year, with growing demand for artificial intelligence services helping boost both revenue and large deal wins. The company said its annualised AI revenue run rate reached $2.6 billion during the June quarter, marking a 13.6% sequential increase.
The IT services giant posted consolidated revenue of ₹72,275 crore, up 13.9% year-on-year, while net profit increased 4.6% to ₹13,349 crore. Operating margin stood at 24%, although profit slipped around 2.7% compared with the previous quarter. On a constant currency basis, sequential revenue remained flat.
During the quarter, TCS secured $9.5 billion in total contract value (TCV), driven by several large AI-focused projects across manufacturing, healthcare, utilities and enterprise software. One of the biggest wins was an $800 million agreement with Swedish industrial company SKF, where TCS will help transform enterprise operations around an AI-first digital platform.
The company also signed major AI engagements with ServiceNow and a Europe-based Fortune Global 50 company. Additional contracts include AI-powered software engineering, autonomous IT operations and digital transformation projects for utility businesses.
To strengthen its AI capabilities, TCS expanded its partnerships with Anthropic and Mistral, while deepening collaborations with Google Cloud, Oracle and ServiceNow. The company also plans to train 50,000 employees on Anthropic’s Claude AI models as it accelerates enterprise AI adoption and develops industry-specific AI solutions.
Although the number of contracts worth more than $50 million and $100 million remained unchanged, TCS recorded an increase in deals valued above $1 million, $5 million and $10 million. North America continued to account for the largest share of the deal pipeline at 48.3%, while banking, financial services and insurance remained the company’s biggest business segment. The consumer business contributed a slightly smaller share than it did a year ago.
The results also reflect a broader trend across India’s IT services industry, where enterprises are shifting technology spending from traditional software development and maintenance toward AI, automation, cloud transformation and digital modernisation. Companies including TCS, Infosys, HCLTech, Wipro and Tech Mahindra have all reported increasing client interest in AI-led projects over the past year.
TCS Chief Executive Officer and Managing Director K Krithivasan said the company maintained strong growth momentum despite global economic and geopolitical challenges. He said the robust order pipeline, major AI transformation deals and expanding technology partnerships position TCS for sustained growth as customers continue investing in AI, cybersecurity, sovereign cloud and platform modernisation.
Chief Operating Officer Aarthi Subramanian said the company’s latest contract wins demonstrate growing demand for AI-led optimisation, software engineering, IT operations, business process transformation and SaaS implementation.
TCS ended the quarter with 593,798 employees, adding nearly 9,000 employees from the previous quarter, although its workforce remains about 19,000 lower than a year earlier. Annualised IT services attrition stood at 13.6%.
The company’s board also declared an interim dividend of ₹12 per share. TCS shares closed at ₹2,047.70 on the BSE on July 9, down 0.5% from the previous trading session.
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