On a quarter-on-quarter basis, net profit increased by 28.58% from Rs 10,720 crore in the December quarter.
Tata Consultancy Services (TCS) on Thursday reported a 12.12% on-year jump in its consolidated net profit for the fourth quarter of the financial year 2026 (Q4FY26), fuelled by macro-economic headwinds and the global developments relating to artificial intelligence (AI).
The Indian tech giant’s net profit rose to Rs 13,784 crore in Q4FY26, up from Rs 12,293 crore reported during the same quarter of the previous financial year.
On a quarter-on-quarter basis, net profit increased by 28.58% from Rs 10,720 crore in the December quarter.
Revenue from operations rose by 9% to Rs 71,455 crore in the March quarter as against Rs 65,507 crore a year ago. The board of the company also recommended a final dividend of Rs 31 per share for FY26.
While the company’s FY26 shareholder payout was Rs 39,571 crore in the form of dividend, as much as 71% of the payout has gone to the promoters Tata Sons due to its equity stake.
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In Q4, the company’s annualised AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions.
TCS shares closed 1% higher at Rs 2,587.75 on the BSE on Thursday.
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However, the company’s shares are down by 28.7% from the 52-week high of Rs 3,630, resulting in a sizeable wealth erosion for shareholders.
K Krithivasan, Chief Executive Officer and Managing Director, said the third consecutive quarter of sequential growth was supported by three mega deals and a $12 billion TCV, underscoring the strength of our five-pillarstrategy and AI-led positioning across services.
“It is equally encouraging that this momentum was broad based across major markets and most industries. While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead,” Krithivasan said.
TCS said FY26 operating margin was at 25%, up 70 basis points on a year-on-year basis, its highest operating margin in the last 4 years.
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“FY26 marked a pivotal year for enterprise AI adoption. In Q4, our annualised AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions,” said Aarthi Subramanian, Executive Director – President and Chief Operating Officer.
Even as TCS scaled our investments in AI‑led growth opportunities, margins expanded by 70 basis points, reflecting the strong operational rigor, Samir Seksaria, Chief Financial Officer, said.
The company also implemented annual salary increases across all grades effective April 1.
“In Q4, we continued to invest in a future‑ready workforce with strong additions across experienced talent and campus hires,” TCS said.
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“Building an AI‑first culture and equipping our people with AI‑ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with customers’ evolving needs,” it said.
Employee headcount of the company was 5.84 lakh.
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